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Choosing a payroll outsourcing company in India.

A payroll company that hires is different from a bureau that only runs salary runs. The best partners handle employment, statutory filings and recruitment end-to-end. Compare on entity ownership, 28-state coverage, turnaround times and liability terms.

Payroll companies in India range from bureaus to full EORs. The best own their entity, cover all 28 states, handle hiring and own the compliance liability.

Speak to sales EOR vs entity, in detail

G2 4.8 / 5 on G2, from companies employing teams in India through us.

Teams building in India. First hire to full team.

Outsourcing payroll yourself versus using a full partner.

Six factors separate a payroll vendor from a complete outsourcing partner.

Payroll vendor model

Full outsourcing partner

What they handle
Salary runs and filing only, you do the hiring
Hiring, employment, payroll and filings end-to-end
Hire speed
Weeks or months, you coordinate
Five days from offer to payroll
Entity ownership
You stay the employer, they file on your behalf
They employ on their entity, you direct work
State coverage
Usually one state or major metros
All 28 Indian states
Late filing liability
Stays with you, they provide software only
Transfers to them entirely
Cost shape
Per-run fees and software subscriptions
One flat fee per employee per month

Payroll vendor model
What they handle Salary runs and filing only, you do the hiring
Hire speed Weeks or months, you coordinate
Entity ownership You stay the employer, they file on your behalf
State coverage Usually one state or major metros
Late filing liability Stays with you, they provide software only
Cost shape Per-run fees and software subscriptions

Full outsourcing partner
What they handle Hiring, employment, payroll and filings end-to-end
Hire speed Five days from offer to payroll
Entity ownership They employ on their entity, you direct work
State coverage All 28 Indian states
Late filing liability Transfers to them entirely
Cost shape One flat fee per employee per month
Month 1
Your entity still incorporates
Month 2
MCA filing processes
Month 3
Tax and PF setup ongoing
Month 4
ESI codes arrive
Month 5
Vendor selection and setup
Month 6
Payroll vendor live, but you hire

A missed filing on a vendor relationship looks different.

If you use a payroll vendor, missed filings stay your liability. 12% PF interest yearly, damages up to 25%, accrue against your company.

A full partner takes the liability. The notice lands on them, not you.

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Late filing liability by partner type Who pays for a missed deadline
₹6,200 Day 1
₹41,500 Day 30
₹1,84,000 Day 90
₹3,12,000 Day 180
Illustrated for one small team miss. Real amounts scale with salary base and delay.
Who the compliance notice addresses
Using a payroll vendor You
Using a full outsourcing partner Partner

The right model depends on whether you control hiring or hand over recruitment too. See both cost shapes in the EOR versus entity calculator with your headcount.

What to look for in a payroll outsourcing company.

Compare payroll partners on entity ownership, state coverage, hiring speed, liability, and turnaround time. These six factors separate vendors from true outsourcing.

You run

  • Hiring strategy and roles
  • Team management and feedback
  • Compensation decisions

We handle

  • End-to-end hiring, onboarding and payroll
  • Statutory filings in all 28 states
  • Compliance ownership and notices
  • Recruitment and employment contracts

You run
  • Pick who to hire and how to manage
  • Set performance and career paths
  • Decide on pay and promotions
  • Keep your management unchanged

We handle
  • Hiring, recruiting and shortlist
  • Employment on our entity
  • Monthly payroll and filings
  • All 28-state statutory compliance
  • Liability for any missed deadline
  • Form 16 and records

When something happens in India, it is ours.
A compliance notice arrives We respond
A payroll error occurs We correct and refile
A state regulation changes We implement immediately

A named compliance manager owns your account. Not a queue, not a chatbot, one person who already knows your headcount and your last filing.

Account managerMedian first reply 4 to 6 hours
Recruitment coordinatorBrief to shortlist 9 days
Finance associateFilings on time 8 / 8

True entity ownership means shared risk.

We employ your team on our entity, not your entity. A missed PF filing by us means a notice to us, not to you. That liability pushes us to perfect execution.

28-state coverage means one expansion story.

Most payroll vendors cover one state or a few metros. We cover all 28 with unified filings and one invoice. Hire in Bengaluru, expand to Chennai remote, scale across regions. Same entity, same partner.

Five-day hire-to-payroll is recruitment plus payroll.

Slow partners make you wait for recruitment, then wait again for onboarding. We combine both. Brief to offer in nine days, offer to payroll in five days total.

One partner replaces hiring, payroll and compliance roles.

Hiring coordinator, payroll manager, compliance person. A true outsourcing company can be all three.

True entity ownership means shared risk.

We employ your team on our entity, not your entity. A missed PF filing by us means a notice to us, not to you. That liability pushes us to perfect execution.

Liability alignment is compliance insurance.

28-state coverage means one expansion story.

Most payroll vendors cover one state or a few metros. We cover all 28 with unified filings and one invoice. Hire in Bengaluru, expand to Chennai remote, scale across regions. Same entity, same partner.

No re-registration per state.

Five-day hire-to-payroll is recruitment plus payroll.

Slow partners make you wait for recruitment, then wait again for onboarding. We combine both. Brief to offer in nine days, offer to payroll in five days total.

Most payroll vendors cannot hire at all.

Moving someone across

Migrate from a payroll vendor to a full partner.

If you use a payroll vendor today and want to add recruitment or transfer employment, moving partners is a registration change with payroll continuity.

Tenure Kept
Gratuity clock Kept
PF and UAN Continuous
Payroll gap 0 days

200 people moved from vendor to full partner setup in one cycle.

Supporting evidence

How to vet a payroll outsourcing partner.

Check: entity registration, 28-state coverage, statutory certificates (PF, ESI, PT, S&E), incorporation year, liability terms, and response times.

  • Incorporation
  • GST
  • EPFO code
  • ESIC
  • Shops and Establishments
  • PAN and TAN
  • Udyam MSME
What we verify
  • Incorporation Ministry of Corporate Affairs
  • GST Goods and Services Tax
  • EPFO code Employees Provident Fund Organisation
  • ESIC Ministry of Labour and Employment
  • Shops and Establishments Government of Karnataka
  • PAN and TAN Income Tax Department
  • Udyam MSME Government of India

We are Foo Falcon Technologies Pvt Ltd, Bengaluru, registered since 2022 with certificates on all 28 states.

200

people migrated from other payroll setups to our 28-state outsourcing

33

monthly payroll cycles for one outsourced partner, zero missed

5 days

from hiring brief to employee live on payroll

G2 4.8 / 5 on G2, from companies employing teams in India through us.

G2 4.8 / 5 on G2, from companies employing through us.

Comparing payroll outsourcing partners.

What companies learned when they switched to a full payroll partner.

Video
Bharath Rasoi KS Rajeshwari Founder, Bharath Rasoi
Video
Open Theatre Anand Raj Founder, Open Theatre
Abid Hassan Verified client
Sensibull
“They moved fast and took the whole compliance side off my plate. For a founder making an early India hire, that is exactly what you want.”
Abid Hassan Founder and CEO, Sensibull
Via G2
Moonshot
“Every option was either 'set up your own entity' or a platform that quotes a great price then hits you with add-ons. Versatile was the one that actually made it simple. First payroll ran on time. No scramble.”
Angad S. Co-Founder, Moonshot
Via G2
Digital Marketing Agency
“Contracts, PF, ESI, TDS and payroll all in one place. Invoicing in USD meant zero exchange rate surprises. The compliance rigour is genuinely reassuring.”
Vedant T. Founder, Digital Marketing Agency
Via G2
Design Studio
“Setting up in a new country can get messy fast, but their India EOR made onboarding feel easy. The team is responsive, clear, and great to work with.”
Setu C. Studio Owner, Design Studio
Via G2
US Startup
“We used Versatile to hire our first employee in India after months of putting it off because the compliance side seemed like a mess. They walked us through it and now we don't think about it.”
Verified US Founder First-time Founder, US Startup
Via G2
Mid-Market Tech Co.
“Versatile consistently delivered work that was both strategically sharp and execution-ready. Their turnaround times are impressive, and they think about problems the way an in-house team would.”
Shivani K. Senior Manager, Tech TA
Via G2
Growth-stage Startup
“Their team was highly responsive, professional, and easy to work with. They made a complex process feel simple.”
Mukul S. Core Team, Growth-stage Startup

Case studies.

Largest food delivery app in India, decacorn View case study The world's largest professional network, part of Microsoft View case study Legacy US software company, publishing platforms View case study

Payroll outsourcing company pricing models.

Payroll vendors charge per run and subscription. Full partners charge one monthly fee per employee covering hiring, payroll and compliance. No lock-in, no setup fees.

Full Outsourcing Partner

End-to-end hiring and payroll
$149 /employee/mo

Reprices to $129 at employee 21. Monthly billing in your currency, no term.

Compare partners
  • Hiring and recruitment included
  • Employment on partner entity
  • Monthly payroll and filings
  • All 28-state statutory compliance
  • One flat-fee model
  • Five-day hire-to-payroll speed
  • Liability transfer to partner
  • No setup or exit fees
  • Hiring and recruitment included
  • Employment on partner entity
  • Monthly payroll and filings
  • All 28-state statutory compliance
Four more
  • One flat-fee model
  • Five-day hire-to-payroll speed
  • Liability transfer to partner
  • No setup or exit fees

Comparing payroll partners or moving 20+ people? Speak to sales.

Recruitment Only

You run payroll yourself
12% of annual CTC

Junior and mid-senior. 15% senior, leadership quoted. Free for your referrals.

Send role brief
  • Shortlist in nine days
  • You employ and run payroll
  • We source and screen
  • Billed on day 90
  • Senior mandates at 15%
  • Leadership quoted per scope
  • No charge for your candidates
  • Works with any payroll setup
  • Shortlist in nine days
  • You employ and run payroll
  • We source and screen
  • Billed on day 90
Four more
  • Senior mandates at 15%
  • Leadership quoted per scope
  • No charge for your candidates
  • Works with any payroll setup

Using a payroll vendor and need hiring help? Speak to sales.

Payroll partner crosses 21

$149 $129 /employee/mo

Full team reprices, no contract change.

Full outsourcing partner includes

  • Hiring and recruitment
  • Employment on our entity
  • Monthly payroll and payslips
  • All 28-state statutory filings
  • Compliance liability transfer
  • Form 16 and annual records
  • Portal access
  • Exit and final settlement

At 21 employees, everyone moves to $129

$149 $129 /employee/mo

The whole outsourced payroll reprices automatically.

What you get

  • Hiring and recruitment
  • Employment on our entity
  • Monthly payroll and payslips
  • All 28-state statutory filings
  • Compliance liability transfer
  • Form 16 and annual records
  • Portal access
  • Exit and final settlement

Recruitment adds 12% of annual CTC billed at day 90 for junior and mid-senior roles. Salary and statutory costs pass at actual. Hardware and partner add-ons invoice on consumption. Compare payroll partners in the EOR versus entity calculator to run scenarios.

Payroll outsourcing companies compared and explained.

Eight questions when comparing payroll outsourcing companies in India and deciding between a vendor and a full partner.

What is the difference between a payroll vendor and a payroll outsourcing company?

A vendor runs salary and filings on your behalf, you stay the employer. An outsourcing company employs the person on their entity, you direct work. Vendors are cheaper at first but do not handle hiring or take liability. Partners handle both and transfer risk.

How do I check if a payroll company owns its entity?

Ask for the MCA registration certificate and CIN. A partner that owns their entity will send PDFs. If they resell another company's setup, they will hesitate or redirect to the real employer.

What does 28-state coverage mean for a payroll company?

It means they file statutory payroll in all 28 Indian states, including state professional taxes where they apply. Most vendors cover 1-3 metro states. A true partner covers all 28 with unified filings.

How fast should a payroll company hire someone?

A vendor cannot hire. A recruiting partner should deliver a shortlist in nine days and get someone live on payroll within five days of offer acceptance. Anything slower means inefficiency or a third-party dependency.

What does liability transfer mean in payroll outsourcing?

If the payroll company employs on their entity, they file in their name and owe the government if a deadline misses. With a vendor, you are the employer and you owe. Liability transfer is compliance insurance.

Can I move from a payroll vendor to a payroll outsourcing company?

Yes. If you use a vendor today, you can transfer payroll and employment to an outsourcing partner with no gaps. Tenure, UAN and gratuity carry through. The migration happens in one payroll cycle.

How do I know a payroll outsourcing company has covered compliance?

Ask for statutory certificates: PF registration, ESI, professional tax, Shops and Establishments, TAN and PAN. A real partner will send PDFs before you sign. No certificate, no credibility.

When should I choose a vendor over a full outsourcing partner?

Use a vendor if you run clean payroll on your entity today and just need software and filing help. Choose a partner if you are hiring for the first time, growing, or want to move recruitment and compliance risk off your plate. Partners cost more per month but less total because they handle hiring too.

Longer reading: EOR India 2026 · EOR India playbook · Pay employees in India

Tell us where you are on the decision.

A role you want to hire, a team you want moved, or just the two routes to compare. A named person replies in 4 to 6 hours.

A named person replies in 4 to 6 hours, not an autoresponder.

We use these details to respond to your enquiry.

A named person replies in 4 to 6 hours, not an autoresponder. We use these details to respond to your enquiry.

What the first call covers

30 minutes

A cost comparison for your headcount, on your numbers, both routes.

  • A written cost breakdown
  • Entity documents before the call
  • PF, ESI, TDS, termination law
  • No follow-up sequence
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