Step-by-Step Guide: How to Hire Indian Developers Without Setting Up a Company in India

Hiring top-tier Indian developers is one of the smartest decisions any global business can make in 2025. However, many companies are held back by one common assumption:

“There are other cost effective remote development destinations because every Indian agency just pitches outsourcing development model at $20/hour or more”

False.

Hiring Indian talent still remains highly cost-effective, and many successful companies achieve this by building dedicated teams through their own development centers or by using Yugasa’s Employer of Record (EOR) model; without the overhead of setting up a legal entity.

This guide walks you through exactly how to do it using Yugasa’s India-specific EOR platform.

What is an EOR, and How Does It Work?

An Employer of Record (EOR) is a third-party service that legally employs workers on your behalf. The EOR becomes the legal employer in India while you retain full control of day-to-day work.

EORs like Yugasa handle:

• Contracts
• Payroll
• Taxes (TDS, PF, ESI)
• Onboarding and documentation
• Compliance with Indian labor laws

Step-by-Step Process: Hiring Indian Developers Without an Entity

Here’s how Yugasa enables you to build a legal, remote team in India without setting up a company:

Step 1: Share Your Requirements

You define:

• The job role
• Tech stack
• Experience level
• Budget (Salary of the developer that you want to pay)
• Location preference (WFH Vs Work From Indian Office)

Yugasa starts sourcing immediately using its paid job portals and internal network.

Step 2: Candidate Sourcing & Screening (FREE)

Unlike traditional recruitment firms, Yugasa doesn’t charge you until the first developer joins.

We cover:

• Paid job portal fees
• Resume shortlisting
• Pre-screening interviews
• Skills assessments (on request)

You receive a refined candidate list within a week’s time.

Step 3: You Interview and Select the Candidate

You:

• Schedule interviews directly
• Use your preferred tools (Zoom, Meet, etc.)
• Negotiate salary transparently
• Approve the final candidate

Yugasa doesn’t interfere in salary talks, you know exactly where your money goes.

Step 4: Background Verification and Documentation

We verify:

• Educational certificates
• Work history
• Criminal and identity records (if needed)

Simultaneously, we collect:

• PAN and Aadhaar
• Bank details
• Address proof
• Emergency contacts

Step 5: Yugasa Issues the Offer Letter

We generate:

• A legally compliant Indian offer letter
• Employment agreement with IP, NDA, and compliance clauses
• Terms aligned with Indian Shops & Establishment laws

You receive a copy of all signed documentation.

Step 6: Onboarding and Legal Employment

Once accepted, the employee:

• Joins your team (remote or office as per preference)
• Is legally employed by Yugasa
• Is onboarded with support from our local HR and payroll team

You assign work, tools, and reporting, just like your internal team.

Step 7: Payroll, Compliance & Benefits (Handled by Yugasa)

Yugasa manages:

• Monthly salary processing
• PF (Provident Fund) contributions
• ESI (Employee State Insurance)
• TDS deductions and filings
• Payslip generation
• Labor law filings

You receive consolidated monthly invoices and employee performance summaries.

What You Avoid with Yugasa

• No need to register a Pvt Ltd or LLP in India
• No Indian directors or partners required
• No local accountants or HR managers needed
• No legal filings, PF/ESI registrations, or labor law headaches
• No equipment provisioning unless requested

Optional Add-Ons You Can Request

Yugasa offers optional services tailored for global teams scaling in India:

• IT asset delivery (laptops, accessories)
• Office/co-working space setup
• Health insurance packages
• Company-branded email IDs
• Onboarding kits and documentation
• HR assistance for performance tracking

All add-ons are billed monthly and transparently.

Pricing Snapshot

Item Cost

Deel and other global EORs charge $599+, without the depth of India-specific expertise that Yugasa offers.

Is It Legal?

Yes, 100%.

Yugasa acts as the official Indian employer, ensuring:

• Local tax registration
• PF and ESI compliance
• Adherence to labor codes
• Valid IP and confidentiality protections
• Audit-ready documentation

Final Thoughts

You no longer need to hire developers on contract at $20/hr or more and neither are you needed to invest $15,000+ in setting up a company in India just to hire one or two developers.

With Yugasa’s India-only EOR platform, you can:

• Start hiring within 3–4 weeks
• Pay through bank accounts in the US or UK
• Enjoy legal peace of mind with zero setup cost
• Scale your Indian team affordably and compliantly

Want to Hire in India Without Setting Up a Company?

Book your free consultation and start building your remote tech team in India, 100% compliant, transparent, and cost-effective.