EOR India for Remote Teams: What US and UK Founders Need to Know

As remote work becomes the new norm, companies across the US and UK are increasingly looking at India to build distributed teams. With a vast talent pool, competitive salaries, and strong English proficiency, India is an ideal choice for scaling fast without draining resources.

But hiring talent across borders isn’t as easy as sending an offer letter. You’ll need to comply with local labor laws, run payroll in a different currency, manage taxes, and ensure your operations are legally sound.

This is where Employer of Record services in India step in.

In this blog, we’ll break down what US and UK founders need to know about hiring remote teams in India through EOR solutions, and how DevX EOR can make it frictionless.

Why India Is a Go-To Destination for Remote Hiring

India isn’t just a low-cost outsourcing hub anymore. It’s home to top-tier engineers, marketers, designers, and customer support professionals.

Key advantages for US and UK companies:

• Massive Talent Pool: India adds 1.5M+ engineering graduates every year.
• English Fluency: India is the second-largest English-speaking country in the world.
• Time Zone Overlap: Indian working hours overlap conveniently with UK mornings and US late evenings.
• Affordability: Average salaries are 60–70% lower than in the US/UK for similar skill sets.

The Problem: You Can’t Hire in India Directly (Without a Legal Entity)

You may think hiring a freelancer or signing a remote contract is enough but it isn’t.

Risks of hiring in India without compliance:

• Violation of Indian labor laws
• Non-compliant employment contracts
• No access to mandatory benefits like PF, gratuity, insurance
• Inability to deduct or pay proper income tax
• Legal exposure in the event of disputes

To employ someone in India legally, you typically need to set up a local legal entity. This involves:

• Registering your company in India
• Opening local bank accounts
• Appointing directors
• Filing tax returns locally

This process can take 3–6 months, requires thousands of dollars, and ongoing administrative effort.

The Solution: Hire Through an EOR in India

An Employer of Record (EOR) is a third-party organization that legally employs your team members in India on your behalf.

You manage their day-to-day work. The EOR handles everything else related to compliance, taxes, payroll, and HR.

What an EOR Does for You:

• Drafts and signs compliant Indian employment contracts
• Manages monthly payroll in INR
• Handles tax deductions (TDS), filings, and pays statutory contributions
• Provides government-mandated benefits (PF, ESI, gratuity, etc.)
• Offers add-ons like health insurance, IT equipment, onboarding kits
• Terminates employees legally (with proper notice & severance)

How DevX EOR Simplifies Remote Hiring in India

DevX EOR is an India-based partner helping global companies hire and manage remote teams quickly, legally, and without setting up a local business.

With DevX EOR, you get:

• Faster Hiring: Onboard employees in India in under 7–10 days
• Pan-India Reach: Tap into talent in major cities like Bengaluru, Hyderabad, Pune, Chennai, Ahmedabad, and more
• Full Legal Compliance: No guesswork around PF, income tax, or termination clauses
• Local Market Insights: DevX understands salary benchmarks, benefits expectations, and hiring trends
• Support Beyond Payroll: DevX helps with contracts, onboarding kits, laptops, and even background verification

DevX works as your India HR and legal partner, so you can scale with peace of mind.

What US and UK Founders Must Know Before Using EOR in India

Hiring through an EOR is simpler but it still requires understanding a few key things about the Indian employment landscape:

1. Employment Classification

India has strict rules around who is an employee vs contractor. EOR ensures your team is properly classified to avoid misclassification fines.

2. Statutory Benefits Are Mandatory

Indian law mandates the following for full-time employees:

• Provident Fund (12% of salary)
• Employee State Insurance (ESI)
• Gratuity (payable after 5 years of service)
• Paid leave, sick leave, and maternity leave

DevX EOR automatically integrates these into your monthly payroll, you don’t have to track or calculate anything.

3. Notice Periods are Longer

In India, standard notice periods are 30–90 days. Your employment agreements will account for this and help with exit compliance.

4. Salary Structures Can Be Complex

Salaries in India aren’t just "base pay." They include:

• Basic salary
• HRA (House Rent Allowance)
• Special allowance
• Bonuses
• Provident Fund contributions

Common Questions from US & UK Founders

Q: Can I pay Indian employees directly in USD via Wise or PayPal?
A: Technically yes, but it’s non-compliant. You’re not deducting taxes or offering statutory benefits opening you to legal issues. An EOR solves this.

Q: What if I want to move the employee to a full-time role later?
A: EOR acts as a stepping stone. You can hire via EOR for 6–12 months and later transition the employee to your own India entity (if you open one). DevX can assist with this transition too.

Q: Is there a minimum number of hires to use DevX EOR?
A: No. DevX works with companies hiring even one remote employee.

Real-World Example: A UK SaaS Startup Scaling in India

A UK-based SaaS company wanted to hire a 4-member support team working India day-shift hours.

The challenge:

• They didn’t want to open a company in India.
• They wanted full-time hires, not freelancers.
• They needed to get started within 2 weeks.

The solution:

• DevX EOR onboarded the team legally.
• Managed payroll, PF, insurance, and local tax deductions.
• The UK company retained full control over daily work while DevX handled all compliance.

Within 10 days, the team was onboarded and operational.

Conclusion: Go Global Without Legal Headaches

India is the ideal location to scale your remote team but only if you do it right. Instead of struggling with local compliance, paperwork, and HR complexities, let DevX take over the heavy lifting. You focus on growing your team and your business while DevX takes care of the rest.