EOR from United States to India.
Hire Indian talent from the United States without setting up an Indian entity. Save up to 70% on setup & employment cost.
Hire in India from the United States. Without an Indian entity.
TMS becomes the legal employer of your Indian hires while you operate from the United States. We invoice you in USD ($); salaries are paid to your team in INR. You direct the work — we hold the compliance.
What you get with TMS
We're the legal employer
TMS signs the employment contract under Indian labour law; you direct day-to-day work. Your IP / NDA / non-compete flows into the contract.
Invoiced in USD ($)
Pay TMS in USD ($) from your home-country bank account. Salaries disbursed to employees in INR. No FX exposure on your books.
5–7 day onboarding
From signed master agreement to first onboarded employee in under a week, regardless of time-zone or location.
United States-friendly process
MSA + DPA reviewed against your home jurisdiction. Compatible with most home-country compliance standards.
Save up to 70% vs entity
Skip the ₹12L+ subsidiary cost, 90+ days of registration, and statutory auditor overhead. Same compliant Indian team — fraction of the cost.
Statutory bullet-proof
PF, ESIC, PT, LWF, gratuity, bonus, TDS — all filed correctly state-by-state. 20 years, zero penalties.
Office, IT & visa support
Coworking, managed office, laptop & equipment rental, employee mediclaim, visa / mobility for your home-country team visiting India.
Clean exits & entity transition
Decide later to set up your own Indian entity? We'll help you migrate every employee onto your payroll with zero salary disruption.
How it works
Discovery
United States time-zone friendly. ~30 minutes.
Proposal & MSA
Pricing in USD ($), statutory breakdown, sample contract.
Offer & onboarding
Candidate signed on TMS employment contract aligned to your spec.
Day 1 live
Indian employee starts. Payroll, benefits, statutory pre-configured.
What's included in your monthly EOR fee
Contracts & HR letters
- State-compliant employment contract
- Offer, appointment, increment / transfer letters
- NDAs, IP assignment, non-compete (jurisdiction-permitting)
- Customized HR policies
Payroll
- Monthly INR disbursal to employees
- Invoicing to you in USD ($)
- Form 16 / annual returns
- Reimbursements + perk taxation
Statutory compliance
- PF, ESIC, PT, LWF, gratuity, bonus, TDS
- State-wise registrations & filings
- Monthly compliance MIS
- Audit-ready registers
Benefits & insurance
- Group mediclaim
- Personal accident & term life
- Leave & state-specific holiday policies
Office, IT, visa (optional)
- Coworking / managed office
- Laptop & equipment rental
- Visa & mobility for visiting United States staff
- On-ground administrative help
United States → India EOR Playbook 2026
Country-specific PDF: tax treaty optimisation, payroll mechanics in USD ($), common compliance pitfalls, time-zone playbook.
- United States-to-India tax treaty notes
- Payroll mechanics: USD ($) → INR
- Compliance pitfalls + how to avoid
- Sample EOR contract clauses
United States → India EOR Playbook 2026
Why US companies hire from India through an EOR
US tech, fintech, and SaaS companies are increasingly building India teams to solve four specific problems at once:
- H-1B and L-1 backlog. Visa caps, lottery uncertainty, and 2–4 year processing windows have made onshore US hiring the slowest path to scale.
- Engineering depth and cost arbitrage. India produces roughly 1.5 million STEM graduates annually; senior engineers in Bangalore, Hyderabad, and Pune cost a fraction of US equivalents.
- Time-zone overlap. Bangalore runs 9.5–12.5 hours ahead of US zones. With staggered shifts, India teams give US companies meaningful daily overlap.
- Avoiding the 4–6 month entity setup. A wholly-owned Indian subsidiary means incorporation, FDI approvals, and bank accounts — EOR skips all of it.
How EOR US to India works — the legal mechanics
When a US company hires an Indian employee through TMS, the structure is:
- TMS is the legal employer of record in India. The employee signs an Indian employment contract with TMS. TMS issues the offer letter and pays salary.
- You retain full operational control. Day-to-day work, performance management, projects, and goals stay with your US team.
- No Indian permanent establishment (PE) for your US entity. Because TMS — not your US company — is the employer, your US entity does not create a taxable presence in India.
- The US–India tax treaty (DTAA, 1989) governs the employee side. An Indian-resident TMS employee pays Indian income tax on their salary.
- Your payment to TMS is a deductible service expense in the US, invoiced in USD or INR by agreement.
Roles US companies typically place on TMS payroll
Across the US clients on TMS payroll today, the most common hire profiles are:
The TMS 5-step onboarding process
TMS handles end-to-end onboarding so your team focuses on day-one productivity:
- 1. MSA and scope agreement. A one-time master agreement covers commercial terms, IP assignment, confidentiality, and exit provisions.
- 2. Candidate sign-on. TMS issues an Indian employment offer letter, completes KYC, and collects mandated documents (PAN, Aadhaar, prior-employment proof).
- 3. Statutory enrollment. TMS enrolls the employee in EPF and ESI (where applicable by salary), professional tax, and other state registrations.
- 4. Payroll setup and first salary credit. Salary structure is finalised (basic, HRA, special allowance, employer-EPF, gratuity) and the first salary is credited.
- 5. Monthly compliance and reporting. TMS files monthly EPF, ESI, professional tax, and TDS, plus quarterly returns — you get a single consolidated report.
EOR vs setting up your own India entity
Setting up a wholly-owned subsidiary in India is the right move at scale. But for the first 1–25 hires, the math overwhelmingly favours EOR.
What hiring 8 engineers in Bangalore looks like
A US-based Series B SaaS company decides to build an India engineering team to scale their platform, with 4 backend engineers already identified.
MSA signed with TMS. Salary bands agreed (₹35–55L senior backend, ₹28–42L frontend, ₹40–60L SRE).
First 4 candidates onboarded — offer letters issued, KYC complete, statutory enrollment done, salaries credited.
TMS supports the next 4 hires as the company's recruiting team sources them, with the same 48-hour deployment per candidate.
Full 8-person team live on TMS payroll. Zero direct India statutory exposure, zero PE risk, one consolidated invoice.
The company crosses 25 India employees and registers an Indian subsidiary. TMS coordinates the transition over 90 days.
Frequently asked questions
Do I 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. TMS is the legal employer; you direct the work.
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 US company?
TMS. The Indian employee signs an Indian employment contract with TMS. This is what eliminates Indian permanent-establishment risk for your US entity.
Does the US–India tax treaty (DTAA) affect my hiring through TMS?
The DTAA primarily governs cross-border income for individuals and prevents double taxation. For your TMS-employed Indian-resident staff, income tax is handled in India.
Can I convert my EOR hires to my own Indian entity later?
Yes. TMS supports EOR-to-entity transition as a standard service, preserving EPF continuity, gratuity tenure, and employee experience.
Can my India team work US business hours?
Yes. Many TMS-employed engineers and support staff work staggered or US-overlap shifts within standard Indian working-week and statutory rules.
How are India statutory benefits handled — EPF, ESI, gratuity, leave?
TMS administers all statutory benefits directly: EPF (12% employer + 12% employee), ESI where applicable, professional tax, gratuity, and statutory leave.
Talk to our EOR team.
Tell us your role, headcount, and timeline. You'll get a proposal in USD ($) and a free 30-minute consultation with our managing partner.
Sales (IVR): +91 22 4896 7640
WhatsApp: +91 91360 24090
Email: [email protected]