What is the difference between Agent of Record and Employer of Record?
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Employer of Record (EOR) is the legal employer of your India team. We sign the employment contract, run the payroll, handle every statutory obligation, and absorb the employment law liability. Agent of Record (AOR) is narrower: you remain the legal employer (because you have your own Indian entity), but we source and administer the benefits stack (insurance, ESOP, equipment, wellness). EOR is full-stack. AOR is benefits-only.
Do I need an Indian entity to use Versatile Agent of Record?
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Yes. AOR is for companies that have their own Indian Private Limited. If you don't have one yet, you want EOR. Versatile can also help you transition from EOR to your own entity (then to AOR + Managed Payroll) when team scale justifies it.
What does the $29 per employee per month cover?
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Sourcing, negotiating, and administering the benefits stack: group health insurance, group life insurance, ESOP coordination, equipment procurement, wellness budget administration, and audit-grade documentation. The actual insurance premiums and equipment costs are pass-through (no markup). Only the AOR administration fee is the $29.
Why not just buy India insurance directly from ICICI Lombard or Star Health?
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You can. But running an India benefits stack at scale (50+ employees) involves quote sourcing, policy negotiation, claims administration, renewal cycle management, and audit documentation. The administrative load justifies the AOR fee for most teams. Below ~20 India hires, direct procurement is fine.
Does Versatile handle India ESOP tax treatment?
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Yes. India ESOP rules (perquisite tax at exercise, capital gains at sale) are different from US RSUs. We coordinate with your equity admin platform (Carta, Pulley, Slice) and your India payroll team. Form 16 reflects the perquisite correctly. Form 26AS reconciles. Exit-time capital gains math is documented.
Can AOR cover only some benefits, not all?
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Yes. The AOR fee is modular. You can use Versatile only for group health insurance (skip ESOP), or only for ESOP and equipment (skip insurance). We price the modules transparently and you choose. Most companies start with insurance + equipment, then add ESOP as the team grows.