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What EOR means for a CN 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.

CN 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 CN 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 CN 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 CN 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 CN companies choose India via TMS EOR.

Time-zone overlap that works

India IST gives you a productive overlap window with CN ET in the morning and CN 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 CN 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.

CN-friendly reporting cadence

Monthly reporting and invoicing designed for CN 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 CN?

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 CN 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 CN 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 CN 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 CN 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 CN 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 CN 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 China: why the entity route is the hard one

For most foreign companies, setting up an Indian subsidiary is a question of cost and time. For a company owned from China, it is a question of approval. That single difference is why an employer of record is usually the practical route into India rather than simply the faster one.

Press Note 3 and what it means in practice

Since April 2020, India has required prior government approval for foreign direct investment from an entity of a country that shares a land border with India, or where the beneficial owner is situated in such a country. China is covered. The rule applies to the investment itself, including transfers of ownership that result in beneficial ownership moving to a covered country.

Approval timelines are unpredictable and outcomes are not guaranteed. Companies that plan a wholly-owned subsidiary on a six-month timetable frequently find the clock running much longer. An EOR engagement does not involve equity investment into an Indian company, which is why it sits outside that particular queue. It is a commercial services contract for employment administration, not a route to ownership of an Indian entity.

This is regulatory territory that moves. Confirm your specific structure with Indian counsel before you commit, particularly where beneficial ownership is layered through a third jurisdiction. We will tell you what we can administer and where the question belongs with a lawyer.

The supply-chain reason

A large share of the China-to-India enquiries we see are not about entering the Indian consumer market. They are about being close to manufacturing that has moved. Electronics assembly, components, textiles and chemicals have all shifted capacity toward India, and the companies that used to buy from Shenzhen now need quality engineers, supplier auditors and logistics coordinators on the ground here.

Those roles sit near industrial clusters rather than in the obvious metros. We employ in every state and union territory, which matters when the factory is in Sriperumbudur or Hosur rather than Bengaluru.

Travel and on-site presence

Visa processing for Chinese nationals travelling to India has been slower and more variable than for most other nationalities in recent years. Plan on-site visits with more lead time than you would elsewhere, and assume your India team will need to operate with real autonomy between visits. Hiring someone senior enough to be trusted without supervision is usually cheaper than repeated travel.

Invoicing

We invoice in US dollars. Your team is paid in rupees. Salary and statutory contributions are billed at actuals, the management fee is fixed per employee, and inbound payments are received through normal FEMA-compliant banking channels with documentation on our side.

Roles commonly placed

  • Supplier quality engineers and factory auditors
  • Production and process engineers for electronics and components
  • Logistics, customs and import coordination
  • Sourcing managers covering Indian vendors
  • After-sales and technical support for equipment installed in India

EOR from China to India: common questions

Why can we not simply incorporate an Indian subsidiary?

You can apply, but since April 2020 foreign direct investment from an entity of a country sharing a land border with India, or where the beneficial owner sits in such a country, requires prior government approval. China is covered. Timelines are unpredictable and approval is not guaranteed. Confirm your own structure with Indian counsel.

Does an EOR arrangement avoid that approval requirement?

An EOR engagement is a services contract for employment administration. It does not involve equity investment into an Indian company, which is why it sits outside the FDI approval route. It is also not a way to acquire ownership of an Indian entity, and should not be presented as one.

Which roles do Chinese companies usually place in India?

Mostly supply-chain functions: supplier quality engineers, factory auditors, production engineers, logistics and customs coordination, and after-sales support for equipment already installed in India.

Can we hire outside the major cities?

Yes. We employ in every state and union territory, which matters when the plant is in an industrial town rather than a metro.

How are we invoiced?

In US dollars. Payroll runs in rupees, and payments are received through normal FEMA-compliant banking channels.

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