Employer of Record India for Spanish Companies — Fast India Hiring Without Legal Entity

Spain’s commercial engagement with India is growing rapidly, particularly in renewable energy, infrastructure, and agrifood sectors. Major Spanish companies including Iberdrola, ACS, Ferrovial, Acciona, and Mango have established or are expanding Indian operations. For Spanish companies evaluating or entering the India market, the prospect of navigating entity registration, annual ROC compliance, and multi-state labour law can seem daunting. Employer of record India for Spanish companies removes this barrier: TMS employs your India-based staff legally, managing all payroll in INR, statutory compliance, and HR administration while your Spanish entity retains full business direction.

Why Spanish Companies Are Entering India

Iberdrola and Acciona are active in India’s renewable energy sector — solar, wind, and green hydrogen — where India’s ambitious 500 GW renewable target by 2030 creates large project pipelines requiring local project and technical teams
ACS and Ferrovial have participated in India infrastructure tenders for roads, airports, and urban mobility projects, needing business development and technical teams in India
Spanish fashion brands like Mango, Zara (Inditex), and Desigual have growing India retail operations that require local store operations, HR, and merchandising teams
Spanish agrifood companies see India’s 1.4 billion consumer market and growing food import appetite as a major opportunity requiring India-based commercial teams
Spain’s engineering and environmental services sector is finding project opportunities in India’s infrastructure and water management build-out

India entity incorporation takes three to six months and ₹15 to 25 lakh per DPIIT and MCA. TMS EOR allows Spanish companies to hire in India within 7 to 10 business days.

What TMS EOR Covers for Spanish Companies

TMS manages all legal employer functions for your India workforce. Our EOR service includes:

Employment contracts in English — Compliant with applicable Indian state and central Labour Codes
Monthly payroll in INR — Salary computation, TDS deduction, payslips, and net pay disbursement
Provident Fund — EPF registration, 12% contributions, ECR filing, UAN management
ESIC — Registration, monthly contributions and returns for eligible employees
Professional Tax — State-specific PT for each employee’s work location
Gratuity and bonus — Statutory provisioning and payment
HR administration — Offer letters, leave management, reimbursements, F&F settlement

Full compliance details at Statutory Compliance Services.

5-Step Process for Spanish Companies Hiring in India

Requirement brief — Share role, compensation, India city (Mumbai, Delhi, Bengaluru, Hyderabad, etc.), and start date
Contract drafting — TMS prepares English-language, India-law employment contracts within 24 to 48 hours
Onboarding — KYC, PF/ESIC registration, bank verification — 2 to 3 working days
Payroll go-live — Salary credited, TDS deposited, statutory challans paid on schedule
Ongoing management — Monthly payroll, returns, dedicated TMS HR pod

Compliance Areas for Spanish Companies in India

India-Spain DTAA — The Double Taxation Avoidance Agreement governs withholding tax treatment on cross-border service payments from Spain to India
FEMA compliance — Service fees from Spain to TMS India follow RBI inward remittance guidelines
PE risk — EOR structure limits PE exposure for your Spanish entity operating in India
Project-based compliance — For infrastructure project teams, TMS advises on the correct compliance structure for project-duration employment contracts
State acts — Maharashtra, Karnataka, Telangana, Tamil Nadu — TMS handles each state’s specific requirements

EOR vs. India Entity Setup for Spanish Companies

India entity — ₹15 to 25 lakh, 3 to 6 months, ongoing ROC filings and statutory audits
TMS EOR — Monthly per-employee fee, 7-day start, no entity maintenance costs

See India company registration when entity setup becomes the right step for larger, long-term operations.

Spanish Industries Using India EOR

Renewable Energy — Solar and wind project development and O&M teams for Iberdrola, Acciona, and Spanish EPC contractors in Rajasthan, Gujarat, and AP
Infrastructure and Construction — Business development and technical teams for ACS, Ferrovial, and Spanish infrastructure companies bidding or operating in India
Fashion and Retail — Store managers, HR executives, and merchandising teams for Mango and other Spanish retail brands in India
Agrifood — Spanish olive oil, wine, and specialty food brands building India distributor management and marketing teams
Engineering Services — Spanish engineering consultancies with India project assignments needing local technical staff
IT and Software — Spanish tech companies building India development teams

Why TMS vs. Global EOR Platforms

India-only specialisation — Full depth on India compliance across all states and sectors
20+ years of India HR experience — Serving European industrial and services companies since 2004
CET/CEST to IST overlap — Spain and India share a 3.5 to 4.5 hour overlap window for same-day communication
Project employment expertise — TMS has experience with fixed-term and project-duration employment contracts relevant to infrastructure clients
Dedicated HR pod — Single point of contact for your entire India team

Hire in India for Your Spanish Company — Start in 7 Days

From renewable energy project teams in Rajasthan to fashion retail managers in Mumbai, TMS delivers fast, compliant India EOR for Spanish companies at any scale.

Contact TMS for a Spain-to-India EOR proposal. See also EOR in India and EOR services overview.

Spanish Companies Hiring in India — What to Know

Spain and India maintain growing commercial ties across infrastructure, renewable energy, technology, and consumer sectors, and Spanish companies increasingly build India-based teams for software development, engineering support, and back-office operations. Many Spanish companies begin India hiring through an Employer of Record before committing to a local subsidiary, using EOR as a low-commitment way to validate team size and function. TMS provides Spanish clients with India-law-compliant employment, payroll, and statutory administration, supported by 20+ years of operating experience and 450+ clients served.

India Employment Law for Spanish Employers

Spanish employment law — including the Estatuto de los Trabajadores (Workers’ Statute), sector-level collective bargaining agreements (convenios colectivos), and the social security contribution regime — has no application to employees based in India. India has 29 central labour laws being consolidated into four Labour Codes, and employment is governed by Indian central and state legislation. Spanish employers should also plan for the interaction of European data protection rules with India’s own regime.

GDPR and DPDP Act 2023: Spanish companies remain subject to the EU General Data Protection Regulation for EU data subjects, while TMS processes India employee data under India’s Digital Personal Data Protection Act 2023. A Data Processing Agreement between the Spanish company and TMS is needed to govern this dual framework.
Statutory Benefits: India employers contribute to the Employees’ Provident Fund (12% of basic salary by the employer), the Employees’ State Insurance scheme where applicable, and Professional Tax; TMS administers all of these.
Gratuity: The Payment of Gratuity Act 1972 entitles employees to a lump-sum gratuity after five years of continuous service.
Termination Notice: Notice periods are typically 30–90 days; establishments with 100 or more workers require prior government approval for retrenchment under the Industrial Disputes Act 1947.
Non-Compete Clauses: Post-employment non-competes are largely unenforceable in India under Section 27 of the Indian Contract Act 1872.

Tax & DTAA Considerations for Spain-India Employment

The India-Spain Double Tax Avoidance Agreement provides that salary income earned by a resident of India for employment exercised in India is taxable only in India — Spanish companies do not withhold Spanish income tax or social security contributions for India-based employees on India payroll. TMS deducts India TDS monthly under Section 192 of the Income Tax Act and files quarterly returns. Spanish companies should be aware of Permanent Establishment exposure: under Section 9 of the Income Tax Act and the DTAA, if India-based employees habitually conclude contracts on behalf of the Spanish entity, the Indian tax authorities may assert a PE. The TMS EOR structure, under which TMS India is the sole legal employer, is the standard mechanism used to contain this risk.

How TMS Manages India EOR for Spanish Companies

TMS onboards India employees for Spanish companies within 2–3 weeks of receiving confirmed hire details, providing English-medium employment documentation compliant with Indian law. Spanish clients receive monthly payroll summaries in both INR and EUR equivalent for consolidated reporting.

Data Processing Agreement (Before Onboarding): TMS signs a Data Processing Agreement with the Spanish company before any employee personal data is shared, establishing the basis for processing under GDPR and India’s DPDP Act 2023.
Employment Contract and Documentation (Days 1–5): TMS issues an India-law-compliant employment contract, collects statutory documents (PAN, Aadhaar, bank details), and initiates EPF and Professional Tax registrations.
Payroll Structuring (Days 5–10): TMS designs a cost-to-company structure optimised for India tax efficiency, aligned with the compensation approved by the Spanish company.
Monthly Payroll & Compliance (Ongoing): TMS processes payroll, deposits EPF and ESIC contributions, deducts and deposits TDS, files quarterly returns (Form 24Q), and provides a monthly cost summary in EUR equivalent.

Frequently Asked Questions — Spanish Companies Hiring in India

Do Spanish collective bargaining agreements apply to our India team?

No. Spanish convenios colectivos and the Estatuto de los Trabajadores govern employment within Spain. Employees hired through TMS EOR are employed under Indian law — their contracts, working hours, leave, statutory benefits, and termination conditions are all governed by Indian central and state legislation. TMS, as the Indian legal employer, ensures full compliance with that framework.

We must comply with GDPR. How is our India employees’ data handled?

Your company remains the data controller for personal data within GDPR scope, and TMS acts as a data processor. Before onboarding, TMS signs a Data Processing Agreement that addresses both GDPR and India’s Digital Personal Data Protection Act 2023. Where your data protection officer requires it, transfers from TMS in India to your Spanish systems can be supplemented with Standard Contractual Clauses under GDPR Article 46.

Can our India employees be paid in Euros?

No. Indian employees must be paid in Indian Rupees through an India bank account. EPF, ESIC, Professional Tax, and TDS are all computed and deposited in INR, and the Payment of Wages Act requires wages in Indian currency. TMS disburses salary in INR and invoices your company, with a EUR equivalent shown for reference only.

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