Employer of Record for Manufacturing Companies in India
Hire Plant Managers, Engineers, Quality Leads & Operations Teams in India Without Setting Up a Legal Entity. Manage Payroll, Factories Act Compliance, Worker Safety, PF, ESI, and Industrial Workforce Operations — Fully Managed.
Hire Manufacturing Talent in India Without Setting Up a Company
TankhaPay's Employer of Record (EOR) service for manufacturing companies lets you hire plant managers, quality engineers, supply chain leads, production heads, and operations professionals in India without registering a local entity or subsidiary. India has become the world's fastest-growing manufacturing destination driven by PLI (Production Linked Incentive) schemes across 14 sectors, China+1 diversification strategies among global manufacturers, and $100B+ in targeted manufacturing FDI. Hiring compliantly, however, means navigating the Factories Act 1948, Contract Labour (Regulation and Abolition) Act 1970, Minimum Wages Act 1948, PF, ESI, TDS, and 28 state-specific labour law variations simultaneously.
TankhaPay becomes your legal employer on record in India. We manage employment contracts, statutory filings, worker safety obligations, INR payroll, and benefits administration end to end. You direct production targets and daily operations. We handle every legal and compliance obligation from Day 1 onboarding to first payroll in 3 to 7 business days.
Why Manufacturing Companies Choose TankhaPay EOR
TankhaPay enables manufacturing organisations to attain the compliance requirements and recruiting speeds necessary to establish operations in India, legally.
Worker Safety & Employer Liability — The Compliance Risk Every Foreign Manufacturer Faces
Occupational safety liability is the most underestimated legal risk when foreign manufacturers begin hiring in India without a local entity. Under the Factories Act 1948 and the Occupational Safety, Health and Working Conditions (OSH) Code 2020, the employer of record bears direct legal responsibility for workplace safety including mandatory safety registers, accident reporting under Form 18, periodic health surveillance, and hazardous process compliance.
If your employees work at a factory site as defined under Section 2(m) of the Factories Act, any premises using power-driven machinery with 10 or more workers. These obligations apply from Day 1 of employment.
As soon as you decide to outsource your recruitment process through our manufacturing EOR services at TankhaPay, we become liable for the entire safety and compliance process on your behalf. The contract that you will enter into will explicitly state the employer-employee relationship according to Indian law, thereby minimizing the chances of your overseas company getting entangled in legal troubles. We have been able to maintain a 0 penalty safety and compliance performance with regards to 500+ organizations since 2000 years as AKAL Information Systems Ltd., a CMMI & ISO 9001/27001/20000/14001 certified technology company.
What TankhaPay Handles for Your India Manufacturing Team
INR Payroll & Wage Compliance
TankhaPay manufacturing payroll processing is done on a regular monthly basis, with automatic CTC configuration. Basic HRA, special allowance, and statutory reimbursement are designed to maximize benefits for workers belonging to industrial categories such as skilled laborers, supervisors, and managerial posts. Minimum wage compliance is achieved for different employee categories and states through the Minimum Wages Act 1948.
Factories Act Compliance
TankhaPay manages the complete statutory compliance calendar for manufacturing employers. Factories Act 1948, Contract Labour (Regulation and Abolition) Act 1970, EPF Act, ESI Act, and state-specific Shops and Establishments Acts. Our compliance team monitors every regulatory change across all 28 states, filing all returns on schedule with zero penalties.
Worker Safety & Health Compliance
Firms that have their research & development units, production engineering centres, and technical development teams working in India are vulnerable to proprietary process risks and trade secret risks. In TankhaPay’s employment contracts, there are NDA clauses, trade secrets clauses, and non-competition agreements, which adhere to Indian law on contracts.
Benefits, Insurance & Compliance
Indian manufacturing employees, plant managers, quality assurance managers, and logistics managers will be expecting benefits at par with other top industrial firms operating in India. At TankhaPay, we create and manage group health insurance plans, statutory benefits, and shift benefits for your entire manufacturing workforce.
Trade Secret & IP Protection
There is a risk to manufacturing firms which have R&D centers, production engineering facilities, and teams dedicated to technical development within India as per proprietary process issues and trade secrets.
Built for Every Decision Maker in Your Manufacturing Organisation
TankhaPay's EOR platform gives every stakeholder in your manufacturing organisation the compliance confidence and operational visibility they need without administrative burden or entity setup delay.
Why Manufacturing Companies Trust TankhaPay to Hire in India
Why Speed-to-Hire Matters in Manufacturing Expansion
The PLI scheme in India, the Chinese +1 diversification of the manufacturing model, and increasing liberalisation of FDI have made it a race for global manufacturers to set up shop in India ahead of rival companies. Foreign companies investing in India via establishment registration will take between 3 and 6 months to complete various requirements – MOCA registration, GST, TAN, EPFO membership, and Factories Act registration – prior to making any hires.
Every delay week is a week when your production line is down, your PLI schedule hangs in the balance, and your chance of success in the Indian market is slipping away. Choosing from the top EOR companies in India is the fastest way to activate your workforce without waiting months for entity setup. TankhaPay's manufacturing EOR engages your Indian workforce and brings on board your first plant manager or operations lead in 3 to 7 business days. You choose the individual and the job description. TankhaPay takes care of everything else.
Why Manufacturing Compliance Cannot Be Managed Generically
Industrial compliance in India is considered to be one of the most multi-layered systems in the entire world. Under the Factories Act 1948, any industrial establishment utilizing power-driven machines in which there are at least 10 employees will have to register, maintain registers, submit annual returns, meet health and safety requirements, and comply with inspection conditions. The Minimum Wages Act 1948 specifies state-level minimum wage rates for workers based on different industry categories and geographical locations along with their employment status. The Contract Labour (Regulation and Abolition) Act 1970 covers contingent labourers and contractors differently than other employees.
A single compliance failure, a missed PF ECR filing, a Factories Act register not maintained, an incorrect worker classification, or an overtime calculation error can trigger penalties under the EPF Act Section 14B or ESI Act Section 85, with retrospective damages of 12 to 25 per cent. TankhaPay's industrial compliance team monitors every regulatory change, maintains a zero-penalty record across 500+ companies since 2000, and keeps your employment contracts current with evolving Indian industrial law.
Why India Specialisation Beats Global EOR Platforms for Manufacturing
Among the 150-180 countries identified by global EORs, India is one of them. Many use third parties to handle the process of employment in India rather than having their own organisation there. Should the matter be related to any of these laws – Factories Act Compliance, Minimum Wage Issue in Karnataka State, Principal Employer Responsibility under Contract Labour Act, or OSH Code Audit – the process is handled via an intermediary.
If you’re a manufacturing company whereby one non-compliance could affect your entire production line, initiate an inspection by the labour authorities, and leave your international company at risk of getting involved in any PE-related cases, then our intermediary approach cannot apply to you. TankhaPay has been serving solely in India for the past 26 years through AKAL Information Systems Limited, a certified technological company through the CMMI and ISO standards such as 9001, 27001, 20000, and 14001. From our single ownership in India, we ensure compliance among the industrial labour force in major manufacturing cities like Pune and Chennai, Hyderabad and Ahmedabad, Bengaluru and Noida, and Mumbai for the FMCG sector.
Ready to Build Your India Manufacturing Team?
From first offer to first payroll, hire plant managers, engineers, and operations staff across India in 3 to 7 days. No entity. No PE risk. Full Factories Act compliance. Worker safety managed. Zero penalties guaranteed.
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FAQs
01.What is an Employer of Record for manufacturing companies in India?
An Employer of Record for manufacturing companies is a legal third-party entity that employs your plant managers, engineers, operations professionals, and skilled trades staff in India on your behalf. TankhaPay becomes the legal employer on record — managing employment contracts, INR payroll, Factories Act compliance, worker safety obligations, PF and ESI filings, and TDS — while you retain full operational control of production targets, daily work direction, and performance management. Foreign manufacturers use EOR to hire in India without registering a subsidiary, branch office, or local entity.
02.Does TankhaPay manage worker safety obligations for manufacturing employees in India?
Yes. Where your workers operate within a factory site as per Section 2(m) of the Factories Act 1948, which means that the place uses power-driven machinery employing 10 or more workers, TankhaPay takes care of all the safety obligations on behalf of the employer as the employer of record. These include accident notifications through form no. 18, compulsory maintenance of safety registers, compliance with OSH Code 2020, regular health checks for hazardous process workers, and inspections.
03.Can TankhaPay manage contract and contingent workers for manufacturing operations?
TankhaPay's EOR service is optimised for professional, managerial, technical, and skilled trades roles like plant managers, quality engineers, supply chain leads, and production heads. For large-scale contingent workforces such as assembly line operators, machine operators, and seasonal production workers, contract staffing under the Contract Labour (Regulation and Abolition) Act 1970 is the appropriate structure. TankhaPay offers both EOR and contract staffing services. Our team advises on the right workforce model based on your manufacturing operationtype, employee count, and India state of operations.
04.How does EOR protect against Permanent Establishment risk for foreign manufacturers?
When your employees in India are legally employed by TankhaPay — an Indian entity — rather than your foreign company, this structure substantially reduces Permanent Establishment (PE) exposure under India's Income Tax Act 1961 and FEMA 1999. Without this structure, your foreign company may be liable for Indian corporate tax on all profits attributable to India operations. TankhaPay's employment agreements define the employer-employee relationship under Indian law in every contract. We recommend a PE risk review if your India team will be signing contracts or generating revenue on behalf of your foreign company.
05.Does EOR cover shift-based employment and overtime compliance for factory workers?
Yes. TankhaPay manages shift-based payroll and overtime compliance under Chapter V of the Factories Act 1948 — which governs working hours, weekly rest days, overtime rates (twice the ordinary rate for hours beyond 9 per day or 48 per week), and compensatory holidays. Shift allowances are structured into the CTC and processed through the payroll platform automatically. For manufacturing operations running 2 or 3-shift patterns, TankhaPay configures shift-specific payroll and statutory deductions for each employee category.
06. How does TankhaPay handle union and collective bargaining obligations for manufacturing employers?
In cases where the workplaces involved are unionised and manufacturing, the employer of record is responsible for discharging duties stipulated under the Industrial Disputes Act of 1947 and the Industrial Relations Code of 2020, such as trade union recognition, collective bargaining agreements, retrenchment pay, layoffs, and formal dispute settlement mechanisms. The obligations of the Employer of Record in regard to the employees they employ are taken care of by the compliance team at TankhaPay. This involves proper keeping of employment records, notice periods, and adhering to Standing Orders under the Industrial Employment (Standing Orders) Act of 1946.
07. What statutory compliance does TankhaPay manage for manufacturing employers in India?
TankhaPay manages the complete statutory compliance calendar for manufacturing employers, including: Provident Fund at 12% employer contribution with monthly ECR filing by the 15th and UAN generation for every employee; Employee State Insurance at 3.25% deposited by the 21st; TDS under Section 192 with quarterly Form 24Q filing and annual Form 16 issuance; Professional Tax at state-specific rates across all 28 states; Minimum Wages Act compliance by employee category and scheduled employment type; Factories Act registration, mandatory register maintenance, and annual return filing; Payment of Gratuity Act obligations (post 5 years of service) and the Payment of Bonus Act. TankhaPay maintains a zero-penalty compliance record across 500+ companies since 2000.
08. Which manufacturing sub-verticals does TankhaPay support for EOR in India?
TankhaPay facilitates EOR recruiting for India's top sub-verticals within manufacturing, including automotive manufacturing (Pune, Chennai), pharmaceutical/active pharmaceutical ingredient manufacturing (Hyderabad, Ahmedabad, Himachal Pradesh), electronics/EMS manufacturing (Bengaluru, Noida, Chennai), FMCG/food processing (Mumbai, Pune, Hyderabad), aerospace and defense manufacturing (Bengaluru, Hyderabad), textile/apparel manufacturing (Surat, Tiruppur, Coimbatore), and heavy engineering. Each sub-vertical comes with its own set of compliance requirements, including the application of Factories Act, state minimum wage legislation, CDSCO compliance for pharma employers, and industry specific registrations; all these are catered to natively by TankhaPay's compliance team within industry domain
09. How does EOR compare to setting up a subsidiary for India manufacturing expansion?
EOR becomes operational within 3-7 business days without any setup cost and with full compliance liability through TankhaPay. Private limited companies take 3-6 months for MCA incorporation, GST, TAN, EPFO registration, Factories Act registration, and state-wise registration for the Shop and Establishment Act, with full compliance liability borne by your company from day one. Manufacturing EOR becomes the most common way of entering the market during the first two years of operations in India, especially for those companies that need to test the viability of their product under the PLI scheme or a company testing its manufacturing facility or project phase team. Upon validation of the market and when the number of employees makes a subsidiary viable, TankhaPay helps you shift entirely to a subsidiary structure seamlessly.
10.Why choose TankhaPay over global EOR providers for manufacturing in India?
Global EOR operators put India amongst 150-180 other countries, while the majority of them use third-party vendors for employing Indian nationals without any direct compliance responsibility. In manufacturing organisations, the mere possibility that an inspection under the Factories Act, a dispute between the workers and unions, a minimum wage non-compliance notice, or implementation of the OSH Code may stop your plant from operating and result in a foreign company being liable is too great a risk. TankhaPay has operated independently only in India for the past 26 years under AKAL Information Systems Ltd. We have our own Indian subsidiary; own industrial compliance experts; manage Factories Act compliance, Contract Labour Act compliance, minimum wages, unionized labor force management, and OSH Code compliance ourselves.