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What EOR means for a ME company

Hire in India without an Indian entity.

An Employer of Record (EOR) is a locally established company that legally employs staff in India on your behalf. Your team member reports to you day to day, works on your projects, and represents your brand. The employment contract, payroll, PF, ESI, professional tax, gratuity, and TDS filings all sit with TMS as the on-record employer in India.

ME companies choose EOR when they want a small India team quickly, when the cost and timeline of incorporating an Indian subsidiary do not fit the plan, or when the hire is exploratory and they want optionality. TMS has been running payroll and compliance in India since 2006, so onboarding a ME client’s first India hire is a well-worn path, not a first attempt.

On permanent establishment: Because TMS is the legal employer, an EOR structure is commonly used to reduce permanent-establishment (PE) risk in India. PE and tax outcomes depend on your specific activities in India, so please confirm your position with your own tax advisor before you rely on it.

What TMS delivers

Everything a ME client needs, handled in India.

You get one commercial contract with TMS. We handle the India-side employment stack end to end.

Legal employer of record

TMS is the on-record employer in India, holding the employment contract and statutory registrations.

Payroll and statutory compliance

Monthly payroll with PF 12% employer, ESI 3.25% employer and 0.75% employee where applicable, professional tax, LWF, gratuity provisioning, and TDS filings.

Offer letters, contracts, onboarding

India-compliant offer letters and appointment letters drafted to your role scope and comp structure.

IP and confidentiality assignment

IP assignment and NDA clauses in the India employment contract so ownership of work product stays with your ME entity.

Reimbursements and benefits admin

Expense reimbursements, mediclaim enrolment, leave records, and standard benefits administration in one flow.

Full and final settlements

Exit processing, gratuity, unused leave encashment, and clean F&F closure when a team member moves on.

Why India, why via TMS

Why ME companies choose India via TMS EOR.

Time-zone overlap that works

India IST gives you a productive overlap window with ME ET in the morning and ME PT in the late evening. Handoff-friendly for engineering and ops.

English-fluent talent pool

Engineering, product, finance, and customer operations talent that already works in English on ME and EU projects.

Skip nine months of setup

An Indian subsidiary takes many months and meaningful capital to stand up. EOR compresses that into weeks so hiring is not gated by incorporation.

ME-friendly reporting cadence

Monthly reporting and invoicing designed for ME finance teams, in a format your controller can reconcile.

EOR vs your own India entity

When EOR fits, and when incorporation fits.

A quick side-by-side to help you decide which path suits the stage you are in.

DimensionTMS EORYour own Indian subsidiary
Setup timeDays to a few weeksTypically several months, often two to three quarters
Setup costNo incorporation spend, service fee modelLegal, registration, capital, and advisory fees
Legal employerTMS holds the employment contract in IndiaYour Indian subsidiary is the employer
Ongoing complianceTMS handles PF, ESI, PT, LWF, TDS, filingsYour team, plus retained tax and payroll partners
Ideal for1 to 50 hires, testing the market, early builds50+ hires, long-horizon India investment, GCC
Time to first hireWeeks once contract is signedAfter incorporation, bank account, and registrations
Pricing framing

How TMS EOR pricing works.

Pricing is per employee per month and transparent. Each monthly invoice is built from three parts: the employee CTC that passes through to your team member, the statutory loading (employer PF, ESI where applicable, gratuity provisioning, admin charges), and the TMS service fee. You see the split every month, so there are no bundled numbers to reverse engineer.

The service fee depends on headcount, role mix, and India locations. We quote after a short scoping call so the number reflects your actual plan, not a placeholder. If you want a rough number before you talk to us, you can estimate your cost with the EOR calculator.

Ready to hire Indian talent from the ME?

Send us the role and rough comp band. We will come back with an EOR quote and a first-hire timeline.

Related services

Also useful for ME companies expanding to India.

EOR in India

Our full India EOR service page with detail on statutory scope and coverage.

Read more →

PEO India

Co-employment option for clients with an Indian entity that still want compliance support.

Read more →

Payroll outsourcing

Standalone India payroll processing and statutory filings without the EOR wrapper.

Read more →

India business expansion

Advisory on entity setup, GCC build-out, and the EOR-to-subsidiary transition.

Read more →
FAQ

Common questions from ME buyers.

Do I need an Indian entity to hire via TMS EOR?

No. TMS is the legal employer in India, so you do not need to incorporate to make your first India hires. You keep the working relationship, we hold the employment contract.

How fast can we onboard our first India hire?

Once the MSA is signed and the candidate accepts, onboarding typically runs in a few weeks, depending on background checks, notice period, and statutory enrolments. We share a hire-by-hire timeline in the scoping call.

Who is the legal employer of the person we hire?

TMS is the legal employer of record in India. The employment contract, payroll, statutory contributions, and filings sit with TMS. Day-to-day work direction, priorities, and reviews sit with your ME team.

What does TMS handle on statutory compliance?

Employer PF at 12%, ESI at 3.25% employer plus 0.75% employee where wage ceilings apply, professional tax by state, LWF, gratuity provisioning, TDS deduction and deposit, and the associated monthly and annual filings.

How does permanent establishment (PE) risk work with EOR?

Using an EOR is commonly viewed as a way to reduce PE exposure in India because the local employer is TMS, not your ME entity. PE turns on facts and circumstances, including the activities your team performs in India, so please treat this as general information and confirm your specific position with your tax advisor.

What does the pricing model look like?

Monthly per-employee invoicing with three transparent components: employee CTC, statutory loading, and TMS service fee. We quote the service fee after a scoping call that captures roles, comp bands, and India locations.

Can we transfer EOR staff to our own entity later?

Yes. Many ME clients start on EOR, incorporate an Indian subsidiary once headcount justifies it, and transfer the team across. We support that transition, including F&F closure on the TMS side and clean handover of records to your entity.

Which ME industries do you support?

SaaS and software, engineering services, fintech, healthtech, ecommerce, media, and professional services are the most common. If the role is legal to perform in India and the comp structure is workable, we can usually support it.

Hiring in India from the Gulf: the easiest overlap you will get

Companies in the UAE, Saudi Arabia and the wider Gulf have a structural advantage in India that most foreign employers do not. The time difference is an hour and a half to two and a half hours, the working week now lines up in most of the region, and a large part of your existing workforce probably has Indian family connections already. Building a team here is less of a leap than it is from Europe or the US.

Free zone entity or EOR

A UAE free zone company cannot employ people in India. It has no Indian legal personality, cannot register with EPFO or ESIC, and cannot issue a compliant Indian employment contract. The choice is between incorporating an Indian entity, with the capital, director and annual filing obligations that brings, or using an employer of record. For teams under roughly fifty people the arithmetic usually favours the second.

Return-migration hiring

A meaningful share of Gulf-to-India hires are people who already worked for the group in Dubai, Abu Dhabi or Riyadh and want to move home. This is the cheapest good hire available to you. They know the business, they need no cultural onboarding, and they usually accept a package that reflects Indian cost of living because the move is a life decision rather than a salary decision.

Handled badly it goes wrong in one specific way. Gulf salaries are tax-free in most of the region and Indian salaries are not. If you convert an AED package into rupees without modelling income tax, provident fund and the employee take-home, the offer looks generous and lands as an insult. We model it properly before the number goes out.

CEPA and the trade relationship

The India-UAE Comprehensive Economic Partnership Agreement came into force in 2022 and has widened trade in both directions. For employers this matters mostly at the edges, through easier commercial movement rather than any change to employment law. Indian labour obligations are identical regardless of where your parent sits.

Invoicing

We invoice in dirhams, riyals or US dollars. Payroll runs in rupees. Salary and statutory contributions are billed at actuals with no percentage markup, and the management fee is flat per employee, written into the MSA and held for the contract term.

Roles Gulf companies commonly place here

  • Finance, accounts payable and group reporting for the regional holding company
  • IT development and support for a Dubai or Riyadh head office
  • Engineering, drafting and project support for construction and infrastructure groups
  • Procurement and vendor management covering Indian suppliers
  • Customer support and back office for regional trading businesses

EOR from the Gulf to India: common questions

Can our UAE free zone company employ someone in India?

No. A free zone entity has no Indian legal personality, cannot register with EPFO or ESIC and cannot issue a compliant Indian employment contract. You either incorporate in India or use an employer of record.

We want to move an existing Dubai employee back to India. Can you handle that?

Yes, and it is one of the most common requests we get. The thing to get right is the package. Gulf salaries are generally tax-free and Indian salaries are not, so a straight currency conversion produces an offer that looks generous and reads as a pay cut. We model income tax, provident fund and take-home before the number goes out.

Which currency do you invoice in?

AED, SAR or USD. Payroll runs in rupees.

Does the India-UAE CEPA change our employment obligations?

No. CEPA is a trade agreement. Indian labour obligations are the same regardless of where the parent company sits.

How quickly can someone start?

Usually 24 to 48 hours from a signed MSA and an accepted offer, assuming background verification comes back clean.

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