Hiring in India Made Effortless: The Game-Changing Power of Yugasa’s EOR Services

Posted on September 9, 2025 by Admin

In today’s hyper-connected world, businesses no longer see geographical boundaries as limitations when it comes to hiring the best talent. Countries like India, with their vast pool of skilled professionals in technology, operations, design, research, and customer service, have become preferred destinations for global companies looking to scale teams efficiently.

But there’s a challenge: hiring in a new country often requires setting up a local entity, navigating complex labor laws, and ensuring compliance with payroll, taxes, and benefits. This process can be time-consuming, expensive, and overwhelming for companies that want to move fast.

That’s where Yugasa’s Employer of Record (EOR) services step in as a game-changer.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party partner that becomes the official employer for your workforce in a foreign country. This means the employee is legally on the payroll of the EOR (Yugasa), but you retain complete control over their work, responsibilities, and deliverables.

Think of it as a simple bridge: you manage the what (day-to-day tasks, goals, and outcomes), and Yugasa manages the how (legal employment, compliance, payroll, and HR formalities).

With an EOR, you don’t need to establish a subsidiary, register with tax authorities, or figure out the intricacies of labor law. You focus on growing your business while we handle the red tape.

Why Yugasa for EOR in India?

India has become the world’s talent hub, especially for IT, engineering, research, and back-office operations. But employing people here involves compliance with dozens of regulations like Provident Fund (PF), Employees’ State Insurance Corporation (ESIC), Gratuity, TDS (tax deduction at source), Maternity Act, Bonus Act, and more.

For a company sitting in the US, UK, or Australia, staying compliant without local expertise is daunting. Yugasa solves this problem with a transparent, compliant, and employee-friendly EOR model.

Here’s how we make global hiring in India frictionless:

The Complete Employment Lifecycle – Managed for You

At Yugasa, we handle every aspect of the employment journey while ensuring you stay in control of decision-making.

1. Offer Letter & Appointment Documentation

We draft legally compliant offer letters and appointment contracts aligned with Indian employment laws. These documents cover important clauses around salary, benefits, working hours, and termination conditions while also safeguarding your business interests through confidentiality and IP protection terms.

2. Salary & Benefits Administration

Managing payroll in India involves monthly disbursements, tax withholdings, and statutory contributions like PF and ESIC. Yugasa ensures your employees are paid on time, every time, while staying compliant with all regulations. We also administer leave policies and other benefits as per your requirements.

3. Labor Law Compliance

Indian labor laws are complex and vary depending on state and industry. From PF and ESIC contributions to professional tax and gratuity, non-compliance can lead to penalties. Yugasa ensures full compliance, relieving you from the burden of monitoring ever-changing rules.

4. Background Verification

Trust and integrity are critical. We conduct thorough background checks—verifying education, employment history, and criminal records—to ensure the talent you hire meets the highest standards.

5. IP Protection & Confidentiality Management

When working with offshore teams, one of the biggest concerns for global businesses is the security of their intellectual property (IP). At Yugasa, we implement robust IP protection agreements and confidentiality clauses, ensuring your business data and IP are safeguarded at all times.

6. Exit Formalities & Final Settlements

Employee exits can be tricky if not handled carefully. We manage resignations, exit interviews, notice periods, and full & final settlements (including gratuity, encashments, and relieving letters), ensuring a smooth and compliant transition.

7. Monthly Compliance Reporting

Transparency is at the core of our services. We provide detailed compliance reports every month covering payroll, taxes, contributions, and benefits so that you have full visibility into what’s happening on the ground.

How the Payment Model Works

To make things even simpler, Yugasa offers a single consolidated monthly payment structure.

Here’s how it works:

You make one payment in your local currency (USD, AUD, EUR, etc.) to Yugasa’s local account in your country.
Yugasa handles employee disbursements, statutory payments, compliance costs, and overheads in India.
You get peace of mind, transparency, and zero hidden costs.

This model eliminates the hassle of multiple transfers, fluctuating exchange rates, and local vendor coordination.

Key Advantages of Choosing Yugasa as Your EOR Partner

Speed of Hiring – Hire top talent in India in a matter of weeks instead of months.
Cost Savings – Avoid the expense of setting up and maintaining a local subsidiary.
Compliance Guarantee – Stay worry-free with our labor law expertise and reporting.
Transparency – You control the salary structure, and we ensure nothing is hidden.
Flexibility – Scale your India team up or down as business needs evolve.
Security – Protect your IP and data with legally enforceable agreements.
Focus on Core Business – Leave HR, payroll, and compliance to us while you focus on growth.

A Real-World Example

Imagine a mid-sized SaaS company in Australia looking to expand its product engineering team by hiring five software developers in India.

Without an EOR, they would need to:

Register a legal entity in India.
Hire local consultants for tax and compliance.
Open an Indian bank account.
Build an HR/payroll function locally.
Navigate Indian labor laws.

This entire process could take 6–12 months and cost thousands of dollars before the first employee is even onboarded.

With Yugasa’s EOR model, the same company can hire developers in 2–3 weeks. Employees are legally employed through Yugasa, salaries and benefits are paid seamlessly, and compliance is handled end-to-end. The company saves time, money, and risk—all while enjoying the full benefits of a skilled Indian workforce.

Who Benefits Most from Yugasa’s EOR Services?

Startups and Scaleups – Grow fast in India without getting bogged down in legalities.
Mid-Sized Companies – Expand engineering, operations, or support teams cost-effectively.
Global Enterprises – Pilot projects in India without long-term entity commitments.
Remote-First Businesses – Employ distributed teams legally and compliantly.

Why EOR is the Future of Global Hiring

The way we work has changed. Distributed teams, remote-first models, and cross-border collaborations are now the norm. Yet, employment laws remain local. EOR bridges this gap, offering companies a compliant and scalable way to build global teams.

Yugasa stands at the intersection of this transformation, bringing deep expertise in Indian labor compliance, payroll management, and IP protection, while enabling you to focus on what you do best: innovating, scaling, and delighting your customers.

Final Thoughts

Hiring talent in India should be an opportunity, not a challenge. With Yugasa’s Employer of Record (EOR) services, you get a reliable partner who ensures compliance, reduces administrative overhead, and gives you the freedom to focus on growth.

Whether you’re hiring one developer or building an entire offshore team, our EOR model ensures transparency, compliance, and control—without the complexities of setting up a legal entity.

In a world where agility is everything, Yugasa makes hiring in India frictionless, compliant, and scalable.

FAQS

What should I look for in a reputable Employer of Record provider in India?

A reputable Employer of Record (EOR) provider in any country should have

1. Strong local legal and compliance expertise,

2. Transparent pricing with no hidden fees,

3. Data protection and IP security protocols,

4. Registered entity and tax compliance track record,

5. Multi-currency payroll support, and

6. Positive client references.

In India, for example, a reliable EOR like Yugasa manages PF, ESIC, gratuity, and TDS compliantly, while offering clear contracts and monthly reporting. Choose an EORwith proven HR tech integrations, rapid onboarding, and end-to-end lifecycle management to minimize compliance risk.

2. How do EOR arrangements affect employee benefits, tax, and compliance?

Under an EOR arrangement, the EOR acts as the legal employer, ensuring full compliance with local labor and tax laws. Employees remain eligible for statutory benefits such as Provident Fund (PF), ESIC, gratuity, and leave entitlements in India, or their equivalents elsewhere. The EOR handles tax withholding (TDS), payroll deductions, benefits administration, and mandatory filings, guaranteeing that both the employee and client company stay fully compliant. For employers, this setup eliminates risks of misfiling, delayed remittances, or non-compliance penalties while maintaining transparent records for audits.

3. Can I easily transfer staff from EOR to company payroll or entity after 12 months?

Yes. Most EOR-to-entity transitions are straightforward when handled with proper planning. After 12 months, a company can convert EOR-employed staff to its own payroll once it has a registered local entity. The process includes (1) issuing new employment contracts under the company’s name, (2) transferring accrued benefits and tenure recognition, and (3) complying with labor law notice and transfer procedures. Premium EORs like Yugasa provide structured offboarding-to-onboarding assistance, ensuring continuity in employment records, PF, and tax identifiers to avoid compliance disruption.

4. What legal risks do businesses face by misclassifying employees using EORs?

Misclassification risks occur when businesses treat full-time workers as contractors or use an EOR incorrectly. Legal consequences include tax penalties, back payment of benefits, employment disputes, and regulatory fines for breaching local employment laws. In countries like India, non-compliance with labor codes, PF/ESIC regulations, or tax registration rules can result in fines and blacklisting. Partnering with a licensed and compliant EOR provider minimizes this risk, as they handle legal employer obligations while keeping client companies safe from classification errors.

5. Are EOR solutions cheaper than registering a local entity for a small team?

In most cases, EOR services are significantly cheaper than setting up a legal entity, especially for small or pilot teams (1–20 employees). Establishing a local entity involves registration costs, compliance filings, legal retainers, and tax setup fees—often totaling $20,000–$50,000+ annually. By contrast, EOR pricing (e.g., Yugasa from $499/month per employee) covers payroll, HR, and compliance in one consolidated fee. This structure eliminates overhead, exchange-rate risk, and multi-vendor coordination, making EORs ideal for startups, SMEs, and testing new markets.

6. What are recent user experience with Omnipresent, Rivermate, Deel. Remote, Atlas, etc?

Based on recent client feedback (2024–2025 trend reports):
• Deel – praised for global coverage, automated contracts, but costly for small teams.
• Omnipresent – strong compliance support, slower onboarding in Asia.
• Remote.com – good UX and transparency, but limited local customization.
• Rivermate – cost-effective, mid-market focus, limited integrations.
• Atlas HXM – enterprise-grade compliance, complex onboarding process.
• Yugasa (India-focused) – rated highly for India-specific compliance, fast onboarding (2–3 weeks), and transparent single-invoice pricing. Overall, regional EOR specialists outperform global providers in legal accuracy and cultural alignment.

7. When and why do companies typically switch EOR vendors or set up local branches instead?

Companies usually switch EOR vendors when they need

1. Better cost efficiency

2. Local expertise

3. Faster onboarding

4. Enhanced compliance reporting.

Many transition to a local entity setup once their team size exceeds 20–30 employees or long-term operations justify the cost of incorporation. Businesses also switch vendors if their current EOR lacks transparent billing, custom benefits management, or data control assurance. A strong EOR (like Yugasa) supports smooth transitions to in-house entities by handling compliance offboarding and employee record migration.

8. What offboarding and exit protocols must an EOR follow by law (to avoid fines/legal issues)?

Legally, an EOR must follow full employment law-compliant exit formalities. In India, this includes

1. Notice period adherence

2. Gratuity and leave encashment payouts

3. Final salary and tax settlement (TDS)

4. PF/ESIC closure filings

5. Issuance of relieving and experience letters.

EORs must also maintain recorded proof of termination, resignation letters, and settlement receipts for audit readiness. Non-compliance can lead to labor court disputes or statutory penalties. Premium providers like Yugasa manage end-to-end offboarding with monthly compliance documentation to ensure zero legal exposure.