A company headquartered in or operating from Russia can hire full-time employees in India without setting up an Indian legal entity by using an Employer of Record (EOR) like TMS. TMS becomes the legal employer in India, handles payroll, statutory compliance, and benefits — typically live within 48 hours.
Why companies from Russia hire Indian talent through an EOR
- Access India’s deep STEM talent pool. India produces ~1.5 million STEM graduates annually with strong English-language ability, broad engineering depth, and competitive compensation at all skill levels.
- Time-zone proximity. India is 2.5 hours behind Moscow time. A 10am Moscow start is 12:30pm in Bangalore — full daily overlap with the Russian afternoon.
- English-language working environment. India engineering teams work in English, the standard language for global cross-border tech collaboration.
- Avoid the 4-6 month India entity setup. Setting up a wholly-owned Indian subsidiary takes 4-6 months and ~₹15-35 lakh in first-year operational cost. EOR through TMS sidesteps it.
How EOR Russia to India works
- TMS is the legal employer of record in India. Employee signs an Indian employment contract with TMS. TMS issues offer letter, pays salary in INR, deducts statutory taxes, files all returns.
- You retain operational control. Day-to-day work, performance management, projects, goals stay with your team. Relationship governed by Master Services Agreement (MSA).
- No Indian permanent establishment for your parent entity. Because TMS is the employer, your parent company does not create taxable presence in India by virtue of having staff here.
- Your payment to TMS is a deductible service expense in your operating jurisdiction.
Practical note on contracting party and billing. TMS contracts with the operating entity that signs the MSA and pays invoices. For groups with subsidiaries in multiple jurisdictions, the contracting entity choice affects billing currency, settlement banking, and ongoing payment flow — please plan this with your finance, treasury, and legal teams before kickoff. TMS bills in USD, EUR, AED, or INR by agreement.
Roles companies from Russia typically place on TMS payroll
- Software engineers (backend, full-stack, frontend, mobile) — by far the largest category.
- DevOps, SRE, and platform engineering — strong India talent pool, time-zone advantage.
- QA and SDET — automation-heavy roles.
- Data engineers and ML/AI engineers — strong growth corridor in Bangalore, Hyderabad, Pune.
- Embedded software and IoT engineering — for hardware-led clients.
- Customer support for English-speaking customer bases.
On language. TMS’s India talent pool works in English. For Russian-language requirements (Russian customer support, Russian-only documentation), India is not the right pool — those roles should stay in Russia or Russian-speaking regions.
The TMS 5-step onboarding process
- MSA and scope agreement — commercial terms, IP assignment, confidentiality, exit provisions.
- Candidate sign-on — Indian offer letter, KYC, PAN, Aadhaar, bank details.
- Statutory enrollment — EPF, ESI (if applicable), professional tax, gratuity nomination.
- Payroll setup and first salary credit — CTC structured per Indian conventions.
- Monthly compliance and reporting — EPF, ESI, PT, TDS, quarterly statutory returns.
We deploy talent in 48 hours.
EOR vs setting up your own India entity
For 1-25 hires, EOR is overwhelmingly the right path. Entity setup math: – Registrations and legal: ₹3-12 lakh. – Operational setup: ₹15-35 lakh. – Time to operational: 4-6 months minimum. – Ongoing burden: 80-150 hours per month of HR + compliance work.
EOR through TMS replaces all of that with a single per-employee fee, 48-hour deployment, zero PE risk, one-line accounting.
When EOR fits: 1-25 employees, market-test phase, multi-country expansion. When to transition: 30+ India headcount, Indian directorial presence on roadmap, strategic IP held by Indian subsidiary. TMS supports the EOR-to-entity transition as a standard service.
FAQ
Does my company need an Indian entity to hire engineers in India?
No. Through an EOR like TMS, you can hire full-time Indian employees without registering an Indian company.
How fast can a new hire be live on TMS payroll?
For candidates you have already identified, TMS deploys talent in 48 hours.
Who is the legal employer — TMS or my parent company?
TMS. The Indian employee signs an Indian employment contract with TMS. This eliminates Indian permanent-establishment risk for your parent entity.
What about international sanctions and banking?
Sanctions and banking restrictions are entity-specific. TMS conducts standard customer-due-diligence checks on all engagements. Companies subject to international sanctions are not eligible for TMS services. For groups with sanctions-screened operating entities (e.g., a non-sanctioned regional subsidiary), the contracting entity and billing flow should be planned with your legal and treasury teams before kickoff. TMS will work with you on settlement currency and banking flow.
Can I convert my EOR hires to my own Indian entity later?
Yes. TMS supports EOR-to-entity transition as a standard service.
Can my India team work Russian business hours?
Yes. India is 2.5 hours behind Moscow. A 10am Moscow start is 12:30pm in Bangalore — natural overlap for Russian afternoon working hours. Teams typically work 11am-8pm IST for full Russia-hours coverage.
How are India statutory benefits handled?
TMS administers EPF (12% employer + 12% employee), ESI where applicable, professional tax, gratuity (4.81% provision), paid leave per Shops & Establishments Act, and maternity benefits.
What does TMS NOT handle?
TMS handles employment, payroll, statutory compliance, and benefits. Not in scope: IP assignment specifics (in MSA), employee equity/RSU administration, individual income tax filing for non-Indian persons, work-visa processing for travel outside India, Russian-language services, and direct contracting that bypasses TMS as employer of record.
Illustrative engagement — Regional tech group building India engineering
A regional technology group with operations in Russia and a non-sanctioned UAE subsidiary decides to build a 5-person India engineering team — 3 backend engineers, 1 SRE, 1 data engineer — to scale platform infrastructure for global customers.
- Week 0: MSA signed with TMS via the UAE subsidiary. Salary bands agreed. Treasury planning completed for USD-invoiced monthly billing.
- Weeks 1-3: All 5 hires deployed within 48 hours of each candidate acceptance.
- Month 2: Full team live on TMS payroll, working with Russia engineering during the natural afternoon overlap. The group has zero direct India statutory exposure, zero PE risk on any operating entity.
- Month 14: Team grows to 14. Group reviews structure decisions; TMS supports continued EOR or transition to entity.
Hiring in India from Russia or regional Asia operations?
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