Yugasa’s Employer of Record (EOR) Services: A Complete Guide for Global Businesses Hiring in India
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 exactly is an Employer of Record (EOR), and how does it work?
An Employer of Record (EOR) acts as the official legal employer for your workforce in a foreign country like India. While you manage the day-to-day work, responsibilities, and goals of your employees, the EOR handles all employment formalities such as payroll, compliance, taxes, benefits, and legal documentation. This allows companies to hire full-time talent without setting up a local entity, streamlining international hiring and reducing administrative burdens.
What are the main benefits of using an EOR for global hiring?
Using an EOR like Yugasa enables businesses to quickly and compliantly hire skilled professionals, particularly in talent-rich countries such as India, without the expense and complexity of establishing a local subsidiary. Key benefits include rapid hiring (2-3 weeks versus months), cost savings on entity setup and overheads, expert compliance with local labor laws, transparent pricing, and flexibility to scale teams up or down according to business needs.
How does an EOR ensure compliance with local employment and tax laws?
An EOR ensures compliance by managing the full employment lifecycle aligned with local laws—including drafting legally compliant offer letters and contracts, processing monthly payroll correctly with statutory deductions (Provident Fund, Employee State Insurance, TDS), administering benefits, and timely filing of all required statutory reports. This end-to-end compliance management significantly reduces legal and financial risks associated with cross-border employment.
Can an EOR handle payroll, benefits, and employee onboarding/offboarding?
Yes, an EOR manages all payroll functions, including salary disbursement, statutory contributions, and tax withholdings. Onboarding includes background checks, issuing localized contracts, and setting up benefits as per Indian regulations. Offboarding and exit formalities, such as final settlements and relieving letters, are also managed to ensure smooth employee transitions that comply with labor laws.
How much do EOR services typically cost?
EOR providers like Yugasa offer a transparent monthly fee model, usually consolidated into one payment from the client. Yugasa’s fee starts at around $499 per employee per month, covering employment contracts, payroll processing, statutory contributions, compliance reporting, and HR support, with no hidden charges. This model simplifies budgeting and removes complexities related to multiple payments or currency conversions.
Which countries do EOR providers cover for international hiring?
While many global EOR providers support multiple countries, Yugasa specializes exclusively in India. This India-only focus allows deep expertise in local labor laws, culture, and regulatory nuances, making Yugasa an ideal partner for companies looking to hire within India without needing a local legal entity.
What’s the difference between using an EOR and setting up a legal entity?
Setting up a local legal entity involves registering a company, maintaining compliance with tax and labor laws, managing payroll, opening bank accounts, and incurring substantial startup costs and administrative overhead. An EOR takes on all these responsibilities as the legal employer while the client retains control over employee tasks. This enables companies to access local talent quickly without the time, cost, and risk of entity formation.
How do EOR contracts work and who is the legal employer?
In an EOR relationship, the EOR company (e.g., Yugasa) is the legal employer of record in the local country. Employment contracts are issued by the EOR, compliant with local laws, and include clauses protecting intellectual property and confidentiality. Meanwhile, the client company manages the employee’s roles, goals, and performance. This division ensures legal compliance while allowing the business full operational control.
What are the risks or limitations of using an EOR?
While EORs simplify global hiring, limitations include less direct control over HR functions and potential dependency on the EOR provider for compliance expertise. Additionally, EOR services typically cover only full-time employees, not freelancers or contractors. Businesses should choose providers with strong local expertise and transparent processes, such as Yugasa, to mitigate risks around legal compliance, payments, and data security.
How to choose the best EOR service provider for my business?
Selecting the right EOR partner requires evaluating their local expertise, transparency in pricing, compliance track record, contractual protections (e.g., IP clauses), client support, and operational flexibility. Providers focusing on a specific market, like Yugasa for India, often offer deeper knowledge, smoother onboarding, and better cultural alignment, which are critical for rapid scaling and low-risk hiring in foreign markets.
