The Ultimate Guide to EOR Service Best Model to Start a Business Activity in India

1. TheUltimateGuidetoEORService: BestModeltoStartaBusiness ActivityinIndia India, a land of rich cultural and lifestyle diversity, has marked its presence as a growing economic superpower. About 20 years ago, Indiatransitionedfromasocialiststatetoaliberalmarketplace.Today, Indiastandsasthe6thbiggesteconomygloballywithaGDPofover $2.6trillion. India has a vast talent pool. A recent report of an assessment of 65,000 graduates states that 40% of India’s youthis job-ready. India offersextraordinaryanddigitallyskilledtalentat effectively affordable laborcosts.

2. ExpandingBusinesstoIndia India leads an attractive business destination for global brands owing toitsoptimisticspending behavior, business-friendlypolicies,andrich talent pool that can be hired at affordable resource costs. When a business aims at expanding in India, it focuses on establishing an overseasterritoryandgrowingitsstrengthtoservice clients. Overseasbusinessesusuallypromoteremoteteamsandvirtual working environments. This is to facilitate their need for infrastructure asnobar.Hiringtalentisonepartbutretainingthatresourceremains achallenge. Also, for any company from across the globe willing to set up an operationinIndia,itisessentialtoresearchandnavigatelocallabor laws to steer clear of employment risks. Keeping track of these changes requires you to incorporate finance, HR, and payroll specialistsinto your team. Wouldn’t it be easier if you could get away from this nightmare of adheringtocomplexIndianstatutorytaxandlaborlawcompliances? Hiring employees in a new country is lengthy, complicated, and expensive.Youhave toestablish alocal entityor asubsidiary, and deal with currency conversions and overseas banking. These tasks aretediousand taketimeaway fromproductive work.

3. Toavoidthishassle,PEO(ProfessionalEmploymentOrganization) andEOR(EmployerofRecord)conceptswereintroducedintheearly 1970s. For companies operating in a foreign land, PEO became a usefulwayofoutsourcingparticularHRfunctionsandreducingcosts. Whereas,forbusinesseslookingathiringtalentinothercountries withoutforminga legalentity, EORbecamethe rightfit. TheearlyversionofPEOservices:US-basedmodel In the US domestic model, the early version of the ‘co-employment’ model got recognized by the legislature. It gained popularity as a way ofcooperatingintheadministrationofemploymentcontractsbetween theemployingcompany,anadministrativecompany, andthe employee.Onaformalbasisinlaw,thePEOagenciesbegan offering morecomprehensiveservices thanemployeeleasing. The DIY (do-it-yourself) approach of incorporating, registering, and running a local payroll was worthwhile for companies looking at commitmenttoacountry.Butforthosewillingtoenternewmarketsin other countries, leveraging international PEO/ EOR became an ideal alternative. ThemodernstructureofInternationalPEO/EORservices TherearesmalldifferencesbetweenthetraditionalPEO/EORmodel andtheInternationalPEO/EOR.Somefirmscoinedtheterms

4. InternationalPEO/EORtodescribetheservicesofferedgloballyrather than a country-based model. In short, the difference between the two canbebetterunderstoodas–inthecaseofPEO,youmusthavea localentityinforeignlandwhereas,foranEOR,youdon’tneedalocal presence. WhatisInternationalPEO/EOR? The international PEO (Professional Employment Organization) Or EOR (Employer of Record) services equip an international business by providing human resources services, including international hiring and employment. It is a business-to-business arrangement between thecompanyandtheservice provider.Thelatterhandlesthedefined

5. aspectsoftheemployeesonbehalfofthecompany.Theservice provider is a registered employer of your remote team. You can manage the employee’s day-to-day work and execution responsibilities,anddecide whoyouwant tohire. HowdoesanInternationalPEO/EORwork? International PEO/EOR service providers have their own legal, registeredentitiesinforeigncountries.Theyemployyourstaff,provide agreed infrastructure, and make them available to you for exceptional work. International PEO/EOR service providers then manage their monthly payroll, taxation, insurance, HR admin, and related compliancewith locallaws on yourbehalf. Thisarrangementgivesyouaccesstoforeignmarketswhereyoucan buildyourremoteteamandonboardlocaltalent.Theserviceprovider becomes the best advisor for laws regarding local contracts, worker protections,noticeperiods,terminationrules,andseverancepay. WhyuseanInternationalPEO/EOR? Since International PEO/EOR service providers are the legal employers for your team, it eliminates your administrative efforts. You getfreedomfromhandlingstaffingresponsibilitiesandkeepingupwith foreign compliance and tax laws. Their services and experience offer superiorriskmitigationwithoutformingabusinessentityabroad.

6. Competitiveadvantages • Increased employee retention: A PEO helps you offer your employeesattractivebenefitplans.Thisbooststheemployee retentionrate. • Experienced management team: You get access to experiencedprofessionalsinHR,benefits,payroll,taxation,and otheremployee managementfunctions. • Better control: You get better control over employment-related regulatorycomplianceandemployee-relateddisciplinaryissues. • Increasedaccesstoemployeelife-cycle:Youcanprovide effective management and access employees online with a self-service portal. This eases the monitoring of employee records, pay sheets, leave tracking, tax deductions, and full trackingofemployees whereverrequired. For growth-minded companies, international expansion is not an end goal but a start to a challenging new venture. There are many considerations for your business on the eve of international expansion. Companies expanding to India find it relatively easy to formcollaborativepartnershipswithlocalEORserviceproviders.How exactly does an international PEO support your business throughout thisexciting transition? StartyourbusinessjourneyinIndiawithEOR

7. Formality Pty Ltd., an Australia-based company, willing to expand overseas was in search of an India-based partner that would have a smooth and cost-effective operational process. Initially, they had three contractors working for them and this cost them to lose a lot of productive time. In addition, despite support from the local partners, theyhadtomanagelogisticalissues,expensereimbursements,and individualcompliances. To address these pain points, they were in search of a local service provider and decided to partner with Remunance for EOR services. Remunancecreatedaformalbusinessplanthataddressedrelevant business, employment, and tax laws. This in itself made for a smootherand more cost-effective operationalprocess.

8. Most companies fundamentally choose this option of engaging with a localpartnerwhocanemployindividualsontheirinfrastructure.Italso has a great potential for reward as they do not have to manage HR, benefits, and payroll. However, for businesses moving internationally, costs and risks are involved. Let us understand how setting up a subsidiary becomes a seamless journey when you partner with the rightPEO. Asoneoftheoldestprovidersofemployerofrecord(EOR)servicesin India, Remunance has the resource depth, knowledge base, and networktohelpyou.Forover15years,wehavehelpedclientsfrom NorthAmerica,Europe,andAsiawith360-degreesupportservices. Remunance has earned credibility by providing on-the-ground support necessary to thrive In India. As EOR, Remunance helps hire best-fit employees, onboard them smoothly, keeps a check on compliance, and manages their performance and payments. But above all, they focusmajorlyonimprovingtalentretention.Forcompaniesthathavea remoteteam,freelancers,or contractorsworkingforthem, Remunanceprovidescustomizedservicesandaself-serveplatform that helps you take control over the IT, infrastructure, and logistics support. Connectwithourexperts Remunancehelpsyouexploretheoptionthatbestsuitsyour needs:

9. Though most companies prefer our EOR services, Remunance also extendssupportintheincorporationofofficesforbusinessesthatwish to form subsidiaries in India. Let us have a glance at why a selected fewbusinesseschosetoextendtheirbusinessoperationsinIndia: Waltham,aUSA-basedRTOS-PlatformcompanyIntervalZerowas seekingdevelopersforWindows-basedRTOS.Theywereonthe lookout for a reliable and experienced employer of record to make it the right attempt. After screening through outsourcing partners, joint ventures,vendorconsultants,andothertypesofalliances,theyfound Remunance. After the initial discussion with their CTO Brian, Remunance took chargeandplannedastrategytolocateresourceswithpotential,and trained them as per the job requirement to make them productive. As webuiltacoreteam,theoperationsachievedeverymilestonethat wassetout. Fortwolongyears,Remunancehandledlegalcompliance,benefits, payroll, and other HR functions of IntervalZero. With the seamless functioning and credibility added to their brand identity, Jeff (CEO) took a decisive step to form a subsidiary in India using Remunance services.TohelpthemestablishabusinesspresenceinIndia, Remunancesetupauniqueseparateofficeinfrastructure.Finally,we smoothlytransitionedthecorefunctionstotheIntervalZeroteam. Tolearnmoreaboutsubsidiaryformation,checkourlatestblog.