Employer of Record Services in India

The moment you employ via TankhaPay EOR service, your Indian workforce automatically becomes an official employee of TankhaPay. At 12% of employer contribution, TankhaPay ensures that all your employees are enrolled under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 while the Employees State Insurance Act, 1948 is enacted on them under a contribution of 3.25%. The process of deducting tax is done under Section 192 of the Income Tax Act, 1961. Your role is to manage their performance; we take care of all other aspects

Through TankhaPay EOR, you can hire in India without registering under the Companies Act 2013, which typically takes 3 to 6 months and requires MCA registration, GST, TAN, EPFO setup, and state-wise Shops and Establishments Act compliance. TankhaPay becomes the official employer on record — your business has no Indian entity costs, no permanent establishment risk under the Income Tax Act 1961, and no direct compliance obligations. Your first hire can be on payroll within 2 to 3 days.

TankhaPay acts as the legal employer when using an Employer of Record, so your company doesn't need an India entity and there's no permanent establishment risk under the 1961 Income Tax Act. With a Professional Employer Organization, co-employment means you need to register a presence in India and take on employer liabilities right from the start. EOR is perfect for those without an India entity, whereas PEO only fits if you've already set up or intend to incorporate a subsidiary.

TankhaPay takes a flat monthly fee per employee, with no extra charges. This ends up being cheaper than handling everything in-house. Managing in-house monthly PF ECR by the 15th, ESI deposits by the 21st, quarterly TDS Form 24Q, professional tax registrations, and annual Form 16 gets really pricey. Plus, setting up an Indian entity costs between 2 to 5 lakh INR and brings on extra compliance work. An EOR solves all those issues.

TankhaPay absorbs direct legal employer liability under all applicable Indian labour laws. Missed PF filings attract damages of 12 to 25% of arrears under Section 14B of the Employees Provident Fund Act 1952. ESI defaults trigger penalties under Section 85 of the ESI Act 1948. TDS non-deduction draws interest under Section 201 of the Income Tax Act 1961. As your EOR, TankhaPay manages every filing on time — zero compliance penalties across 500+ client companies since 2000.

Getting your first employee on India's payroll takes only 2 to 3 days after they accept your offer. TankhaPay does everything: issues the contract, registers the person under the right laws like the 1952 Employees Provident Fund Act and the 1948 Employees State Insurance Act, sets up tax configurations, builds the payroll, and gives them portal access. You don't need an incorporated entity, MCA registration, or any other state-wise setups either.

Permanent establishment risk happens when a foreign company has employees in India but doesn't have the right employing structure in place. This could lead to tax issues and reporting problems under the Income Tax Act 1961 and FEMA 1999. With TankhaPay as the legal employer, your company isn't directly employed with anyone in India. So, your employees work for you while being legally hired by an Indian entity right from the start, which cuts down the PE risk greatly.

TankhaPay manages everyone from software engineers to factory workers on one platform. It handles both blue-collar and white-collar payrolls smoothly too. For blue-collar workers, they follow the Factories Act 1948 for larger plants, state minimum wages from the Minimum Wages Act 1948, and make Labour Welfare Fund contributions – all without using separate systems.

TankhaPay makes exit seamless and hassle free. As per Payment of Wages Act 1936 they determine the complete and final settlement which includes leave encashment, unpaid salary and pay for notice period. Plus they look into gratuity for staff over 5 years of service as per the Gratuity Act 1972. They take care of taxes on exit payments, settle PF accounts and do all other statutory ends. Then you won't have to worry about leftover compliance stuff later on.