TMS 20 years of Experience

Employer of Record (EOR) UK to India

UK to India

UK-to-India Workforce Expansion with Employer of Record (EOR) Services

Rising payroll costs, labor shortages, and compliance complexities in the UK are driving companies to look east. Expanding to India is no longer just a cost-saving move — it’s a long-term growth strategy. Through UK-to-India Employer of Record (EOR) solutions, your business can:

  • Expand operations without setting up a legal entity

  • Reduce employment costs and maintain flexibility

  • Access India’s top-tier skilled professionals

Why UK Companies Are Expanding to India

Over the past few years, UK businesses have experienced a surge in operational costs — from payroll and national insurance to workplace compliance and inflation-driven overheads. At the same time, the local talent market is tightening, making it difficult to scale quickly without overextending budgets.

India provides an efficient, future-ready alternative. With its deep talent pool, competitive labor market, and advanced digital infrastructure, India enables UK companies to expand capacity, control costs, and maintain high productivity levels — all within a compliant framework.

Through an EOR partnership, you can build or extend your workforce in India, without worrying about setting up a local subsidiary, managing HR administration, or navigating complex local laws.

Benefits of Expanding from the UK to India with an EOR

Cost Efficiency
with Quality

Cut setup and employment costs by up to 70% in India — with zero compromise.

Access to skilled Indian talent

Leverage India’s large pool of professionals across IT, finance, customer operations, and engineering.

Full Compliance, Zero Headaches

A mature regulatory system and clear labor laws ensure smooth hiring, payroll, and compliance management.

Perfect for SMEs
and Startups

Scale at your own pace. EOR gives small companies the agility to hire quickly and explore India’s market.

Scale confidently and efficiently by expanding your workforce to India.

Connect with our HR Expert.

How Our India EOR Works Step by Step

  1. Market & Role Understanding
    We begin by mapping your business objectives with India’s talent landscape. Moreover, this ensures that the roles you hire for are aligned with both your company goals and the realities of the Indian job market.
  2. Compliant Hiring & Contracts
    TMS prepares fully compliant Indian employment contracts, manages employee registrations, and ensures that every hire is legally sound. As a result, you avoid lengthy legal and administrative hurdles.
  3. Payroll, Taxes & Benefits Administration
    From monthly salary disbursement to statutory contributions like Provident Fund (PF), Employee State Insurance (ESI), and professional tax, we handle all financial compliance seamlessly. Meanwhile, employees receive benefits in line with Indian labor standards, keeping you risk-free.
  4. HR Support Throughout Employment
    Beyond onboarding, we manage ongoing HR functions — leave and attendance, expense claims, employee queries, and exit formalities. Therefore, your workforce remains supported while you stay focused on scaling.
  5. Scalability at Your Pace
    Whether you start with 1 employee or 50, our EOR model grows with you. In fact, SMEs and startups can test the Indian market without upfront entity setup, and then scale operations quickly when the time is right.
What We Offer in Employer of Record (EOR)

Onboarding To Exit Management

Employee Taxation

Talent Acquisition (Recruitment)

Payroll Management

Visa Support

Compliance Management

Expense Claim Management

HR Advisory

IT/ Infrastructure Support

Why Choose TMS?

Global Presence​

We have global presence & we are serving clients from more than 20+ Countries.

100% Compliance

TMS have created a reputation for delivering 100% Statutory Compliance.

HR Expertise

Our team is a leading HR Service Provider in India by employing over 8500+ Employees in 100+ Locations PAN India.

Dedicated HR Team

Our Operation is supported by Dedicated HR Team who support your employees by resolving their HR queries throughout their Lifecycle Stage.

User Friendly HRMS

The best HRMS technology is available to support the operations of our clients operating from outside India.

Support In Setup

Support is provided to our clients in setting up their company in India, including necessary registrations, IT, and infrastructure.

Explore More India Market Entry Solutions

Registering Company in India

For businesses planning a long-term presence, we handle complete legal entity formation, statutory registrations, and local incorporation along with providing HR Solutions.

Setting Up Back Office in India

Expand your operational capacity with back-office teams in India. We manage hiring, payroll, compliance, and HR processes so your support functions run smoothly.

Setting Up Sales Office in India

Quickly build your revenue-generating sales presence in India. Through our EOR services, we handle compliant hiring, onboarding, payroll, and statutory obligations.

Scale Smarter with a Trusted EOR Partner in India

Expanding your UK operations to India doesn’t have to be complex. With the right Employer of Record (EOR) partner, you can establish a compliant, high-performing offshore workforce — without the cost or time of setting up a local entity.

Team Management Services simplifies every step of your UK-to-India expansion — from hiring and payroll to compliance and HR management. With nearly two decades of expertise in EOR and HR outsourcing in India, TMS empowers UK businesses to reduce operational costs, access exceptional talent, and scale with confidence.

Future-ready companies aren’t waiting for ideal conditions — they’re building flexible, borderless teams today.
Start your journey to smarter, faster, and compliant growth in India with TMS Employer of Record services.

FAQs

Absolutely. Reputed providers like TMS ensure full compliance with Indian labor laws, tax requirements, and international data protection standards. This helps UK companies operate risk-free while maintaining a transparent employment structure.

By shifting roles to India:

  • Payroll is significantly lower
  • Tax obligations are lighter
  • Office & benefits costs reduce
    Up to 60% savings while improving productivity.

Once roles are finalized, our team can help you onboard employees in weeks, ensuring quick and compliant entry into the Indian market through our trusted EOR services.

Yes — we operate nationwide with state-wise compliance expertise.

Absolutely. You lead. We support.
TMS is only the legal employer to reduce your burden.

An EOR model is fully flexible. You can begin with an Employer of Record to start operations quickly and later transition employees to your own entity once established. TMS provides full guidance for a smooth transition from EOR to direct employment, ensuring no disruption in payroll or compliance.

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EOR vs. Setting Up an India Entity — Which Route Fits UK Companies?

UK companies are expanding into India with renewed momentum, supported by closer bilateral trade ties and the recently concluded India-UK free trade agreement, which is expected to deepen commercial links across services and technology. For a UK business taking its first steps, the decision between an Employer of Record and a wholly owned subsidiary turns on how quickly it needs people on the ground and how settled the India strategy is. An EOR allows a UK company to hire and pay India-based staff almost immediately, keeping the arrangement flexible while demand is tested. A subsidiary suits a confirmed, long-term operation. The comparison below outlines the trade-offs so UK decision-makers can weigh speed, cost, and compliance accurately.

FactorEOR (via TMS)Wholly Owned Subsidiary
Setup timeAround 1–2 weeksAround 3–6 months
Upfront costLow; service fee only, no incorporation capitalHigh; capital, legal, registration, and director costs
Compliance burdenManaged by TMS as the legal employerFull Indian corporate, tax, and labour law obligations on the company
Hiring speedOnboard staff in daysMonths — hiring waits on incorporation
Exit flexibilityWind down with contractual noticeLengthy liquidation and statutory deregistration
Best forSmall teams and market testing while UK-India trade ties matureLarge permanent operations once the India market is firmly established

How TMS Supports UK Companies in India

UK Companies Hiring in India — What to Know

The United Kingdom and India share deep commercial ties across fintech, pharmaceuticals, professional services, and legal sectors, and ongoing UK-India Free Trade Agreement negotiations have accelerated interest from UK-headquartered companies in building permanent India teams rather than relying on project-by-project outsourcing. The sizeable Indian diaspora in the UK also generates a specific hiring pattern: Indian-origin professionals based in the UK who wish to relocate back to India and work for their UK employer remotely. TMS provides EOR infrastructure that accommodates both established UK multinationals entering India for the first time and UK SMEs hiring their first one or two India-based employees.

Tax & DTAA Considerations for UK-India Employment

The India-UK Double Tax Avoidance Agreement (entered into force 1981, as amended) provides that salary income earned by a resident of India for employment exercised in India is taxable only in India. UK companies do not withhold PAYE or National Insurance contributions for India-resident employees on India payroll — TMS handles all India income tax (TDS) deductions and filings. The DTAA also contains specific provisions around the taxation of business profits and the definition of Permanent Establishment: if a UK company’s India-based employees are senior enough to regularly exercise authority to bind the UK entity, the Indian tax authorities may assert PE status, potentially subjecting the UK company’s India-attributable profits to Indian corporate tax at 25–30%.

How TMS Manages India EOR for UK Companies

TMS completes India employee onboarding within 10–14 business days of receiving confirmed hire details. UK clients receive monthly payroll summaries in GBP equivalent alongside the INR payroll register, structured for easy reconciliation with UK management accounts.

  1. Employment Contract Issuance (Days 1–3): TMS drafts and executes an India-law-compliant employment agreement covering designation, CTC breakdown, notice period, leave entitlements (minimum 21 days casual/earned leave), and IP assignment clauses enforceable under Indian law.
  2. Statutory Registrations (Days 3–7): EPF UAN generation, ESIC registration (where applicable), Professional Tax enrolment in the relevant state; TMS holds all statutory registrations in its own employer code.
  3. Payroll Setup and CTC Structuring (Days 7–10): Salary is structured with components (Basic, HRA, Special Allowance, LTA) to optimise the employee’s India tax liability; TMS aligns the INR CTC with the GBP compensation package approved by the UK company.
  4. Ongoing Compliance and Reporting (Monthly): TMS runs payroll, files EPF/ESIC returns, deposits TDS, and provides the UK finance team with a monthly cost report broken down by employee, including employer statutory contributions.

Frequently Asked Questions — UK Companies Hiring in India

We have an Indian-origin employee currently on our UK payroll who wants to relocate to India. Can TMS handle this?

Yes, this is a common scenario. The employee would resign from the UK employment (with appropriate UK tax and NI settlement), and TMS would engage them as a new India employee with a fresh India employment contract. There is no automatic continuity of UK service entitlements in India — gratuity, EPF, and other India statutory benefits start accruing from the India employment start date. TMS coordinates the onboarding so there is no gap in pay.

We use a UK-based contractor in India who invoices us directly. Is this a problem?

Potentially yes. If an individual in India invoices a UK company directly for ongoing services that resemble employment (fixed hours, direction and control, single client), the Indian Income Tax Department and PF authorities may reclassify the arrangement as employment, creating liability for unpaid TDS, EPF contributions, and interest penalties. TMS can assess the arrangement and, where reclassification risk is identified, transition the individual to a compliant India employment under TMS EOR.

How does the UK-India Free Trade Agreement affect our decision to hire in India now?

The FTA negotiations, if concluded, are expected to address professional services market access and potentially short-term business visitor visas — not employment tax or EOR arrangements. The statutory employment compliance framework (EPF, ESIC, TDS) is governed by Indian domestic law and will not change as a result of the FTA. UK companies hiring now through TMS EOR are not disadvantaged by waiting for the FTA.

HEAD OFFICE

1003-04, 10th floor G-Square Business Park, Jawahar Road, Opposite Railway Station, above Kalyan Jewellers, Ghatkopar East, Mumbai – 400077

BRANCH OFFICE

601 to 603 Aries Galleria, Vasana Road, Vadodara – 390015 Gujarat, India

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20+ years of expertise in Contract Staffing, EOR, Payroll & Compliance

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