India expansion strategy.
Plan year 1 of India hiring. Pick headcount, model (EOR, entity, contractors), and start date. Get time-to-hire, cost estimate, compliance checklist, and verdict.
People you want to hire in the first 12 months.
EOR: fastest, we handle compliance. Entity: yours to run. Contractors: highest risk.
When do you want to make the first hire?
Expansion roadmap
Time to first hire
·
- Year 1 total cost estimate
- ·
- Per-employee blended cost
- ·
Compliance roadmap
·
·
Year 1 cost assumes average ₹12L/person salary + statutory load, all-in including EOR fees or entity ops. Breakeven analysis and detailed roadmap available from sales. Timelines are best-case; delays can occur.
Expansion strategy by model.
EOR model
Onboarding: 2 weeks. You sign EOR agreement, we handle all India compliance on our entity. Year 1 cost: salary + statutory load + $149/month flat EOR fee. No setup costs. Best for first 10 hires. Compliance checklist: employment contracts, PF/ESIC reg, payroll, tax filings.
Entity model
Onboarding: 4-6 months (incorporation, tax registration, bank setup, payroll system). Setup: ₹4-6L. Annual ops: ₹9L+. Year 1 cost: salary + ops + setup amortized. Best at 15+ headcount. Compliance: extensive. Roadmap: 16-20 steps over 6 months.
Contractor model
Onboarding: 1 week. Lowest friction. Highest risk: India labour law re-classifies mis-controlled contractors as employees, creating back-pay liability. Use only if truly independent (no control, exclusivity, or equipment). Flag misclassification risk in verdict.
Worked example
On the default 5 person first team, EOR comes to ₹73,86,720 in year one, about ₹14,77,344 per hire, and the recommendation is to start with EOR.
India expansion strategy, answered.
The roadmap questions before you hire in India.
Why does EOR onboarding take 2 weeks but entity takes 4-6 months?
EOR: you sign a service agreement, we handle all legal/compliance in India on our entity. Onboarding is ours to speed. Entity: you incorporate, register with tax/labour/factory authorities, open bank account, set up payroll systems. Approvals compound.
What misclassification risk do contractors carry?
If you set work scope, control hours, provide equipment, or require exclusivity, India labour law treats the person as an employee regardless of contract label. Back-pay liability is 12% EPF + 3.25% ESI + employer pro-tax, compounded over months of engagement. Flag clearly in verdict.
What does the compliance checklist cover?
EOR: employment contracts, PF/ESIC registration, payroll setup, statutory filings calendar. Entity: incorporation docs, tax registrations, labour board filing, registered office, company policies, statutory record books. Contractors: independent contract, scope clarity, GST clarity, no misclassification red flags.
Which model is right for most founders?
First 10 hires: EOR. Fast, compliant, predictable cost. At 10-15, model entity breakeven (this tool helps). Contractors only if truly independent and low-risk classification. If in doubt, start EOR and graduate to entity at scale.
When is this tool wrong?
When you need custom structure (multi-entity, branch, JV, PE exposure). Or when local compliance pressure is high (labour disputes, audits, regulatory changes). Speak to sales for those edge cases.
Longer reading: EOR services in India · India expansion options · Related tool: EOR vs entity calculator
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.
What the first call covers
30 minutesA 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
You pick the time, we send a Meet link. Any timezone.