Staffing Services

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party that legally employs workers on your behalf in a country where you have no local entity. The EOR runs payroll, taxes, benefits, and compliance, while you direct the day-to-day work. EORs let companies hire talent in markets like India quickly and compliantly, without registering a subsidiary.

What does an Employer of Record handle?

An EOR becomes the legal employer for your workers in-country. It issues compliant employment contracts, runs local payroll, withholds and files taxes, administers statutory benefits, and manages onboarding and offboarding to local labour law. You still choose who to hire and direct their work; the EOR carries the legal and administrative employment burden so you do not have to build that infrastructure yourself.

EOR vs setting up a local entity

Registering a subsidiary gives you full control but takes months, costs significantly, and adds ongoing accounting, tax, and compliance overhead. An EOR lets you hire in days or weeks for a predictable per-employee fee, which is ideal for small teams, market tests, or fast hiring. Many companies start with an EOR and only incorporate later once headcount in a country justifies a permanent entity.

When to use an EOR in India

India is a common EOR market because of its deep technical talent pool. Using an EOR there, you can hire engineers and other professionals without forming an Indian company, while staying compliant with local payroll, provident fund, and tax rules. Pitch N Hire offers Employer of Record and staff augmentation in India so you can build a team there with payroll and compliance handled for you.

FAQ

Frequently asked questions

Is an EOR the same as a staffing agency? +
Not quite. A staffing agency finds and places candidates; an Employer of Record focuses on legally employing workers and running their payroll and compliance. Some providers, including Pitch N Hire, offer both sourcing and EOR together.
Does an EOR control my team or own my IP? +
No. You direct the work and retain your intellectual property; the EOR is only the legal employer for payroll and compliance purposes. IP assignment is handled through the employment contracts the EOR puts in place on your behalf.
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