Employer of Record for Manufacturing Companies in India
✦ Last reviewed June 2026 — Factories Act 1948 compliance calendar, PLI scheme sector updates, state-wise minimum wage schedules for manufacturing worker categories, OSH Code 2020 implementation status, and Inter-State Migrant Workmen Act 1979 enforcement circulars verified current.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.
What is an Employer of Record for Manufacturing Companies in India?
EOR in India as an Employer of Record for Manufacturing Companies is a formally registered company from India which will employ your factory managers, engineers, quality and operations heads on your behalf. Managing their employment agreements, salary in INR, and other legal requirements of employing people under Indian laws, while you will have full authority over production numbers, operations, and employees’ performance.
There is a need for the employment of EOR in manufacturing because there is no other form of hiring that handles the following issues related to the workers of the manufacturing sector together at one go: Factories Act 1948 registration requirements, the main employer duties under the Contract Labour Regulation Abolition Act 1970, Interstate Migrant Workmen Act 1979 compliance, and the minimum wage in 28 states.
TankhaPay acts as your official employer right from day one, handling all matters regarding registration through Section 6 of the Factories Act, EPFO, ESI, tax deductions at source as per Section 192 of the Income Tax Act 1961, calculation of shift allowances as per Chapter V of the Factories Act, and OSH Code 2020 requirements for worker safety within 3–7 days of your first hiring.
TankhaPay has handled the statutory compliance for over 500 clients since 2000 with Akal Information Systems Ltd, which has been CMMI appraised and ISO 27001 certified with no statutory penalty on any project handled to date. For companies coming into India with the PLI (Production Linked Incentives) program schedule, TankhaPay is the only way forward for activating manpower without having to spend 3 to 6 months in setting up the entity to make the first hire. If you are planning to come into India as part of the China+1 policy diversification plan or to expand an existing manufacturing setup in various Indian states, TankhaPay becomes your full-fledged India employer from day one.
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 — obligations that extend beyond factory floors into every sector where TankhaPay operates as employer of record, including hospitality companies in India where worker safety liability carries its own distinct compliance surface.
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
Manufacturing employers in India have legal responsibility for safety at the workplace through the Factories Act 1948 and the OSH Code 2020. TankhaPay takes up this responsibility on your behalf right from day one of employment by ensuring that you comply with the requirements of accident reporting, health monitoring, safety committees and PPEs as per the Indian laws.
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.
EOR for Every Manufacturing Sector in India
Manufacturing compliance in India is not uniform across sectors. Each sub-vertical carries distinct regulatory obligations. TankhaPay has managed manufacturing workforce compliance since 2000 across every major sector.
EOR for Automotive Companies in India
The automobile manufacturing zones of Pune and Chakan in Maharashtra under the MIDC Zone and the Oragadam industrial cluster of Chennai in Tamil Nadu under the Tamil Nadu Industrial Establishment Act and Gurugram and Manesar in Haryana are some of the industrial zones that have Factories Rules specific to their respective states and different from those of the Factories Act 1948 of India. OEMs and Tier-1 component manufacturers running their manufacturing plants on multi-shift production lines are required to work out accurately the shift allowance, night shift allowance, and off day payment as per the provisions of Factories Act Chapter IV and the corresponding State Factories Act. TankhaPay works out the multi-shift payroll structure of the employees working in the automotive industry located in Pune, Chennai, Bengaluru, Hyderabad, and NCR at the same time. Component suppliers with 100 or more workers also require standing orders under the Industrial Employment (Standing Orders) Act 1946. TankhaPay drafts and maintains certified standing orders covering shifts, suspension, dismissal, and leave for all automotive manufacturing EOR clients.
EOR for Pharmaceutical Manufacturing in India
The pharmaceutical production facilities of India, namely the Genome Valley of Hyderabad; Ahmedabad and Vadodara of Gujarat; Mumbai and Thane of Maharashtra; and Baddi of Himachal Pradesh, involve the employment of people in GMP (Good Manufacturing Practice)-regulated facilities where health surveillance obligations as per the OSH Code 2020 and the Factories Act 1948 Schedule 1 coincide with those of the CDSCO (Central Drugs Standard Control Organisation). Health examinations are due to be conducted for workers working in pharmaceutical manufacturing plants based on the Factories Act 1948. The TankhaPay system is used to schedule and document all the health examination requirements of the pharmaceutical manufacturing EOR employees, which will then lead to audit-friendly employment records when inspected by the CDSCO or Factories Act inspectors. The PLI scheme for pharmaceuticals has created significant hiring urgency for production and quality control staff at PLI-approved facilities. TankhaPay's 3- to 7-day onboarding enables pharma manufacturers to activate staff before PLI production milestone deadlines.
EOR for Electronics and Semiconductor Companies in India
Electronics manufacturing clusters across Bengaluru, Noida Greater Noida, and Chennai are expanding rapidly under the India Semiconductor Mission and the PLI scheme for electronics. Special Economic Zone (SEZ) units have specific employment compliance obligations under the SEZ Act 2005, which supersedes several state-level Shops and Establishments Acts but retains Factories Act 1948 obligations for manufacturing processes. Workers in ESD (Electrostatic Discharge) sensitive environments carry specific PPE and training documentation requirements. TankhaPay manages SEZ employment compliance — SEZ Developer approval for employer registration and EPFO and ESI filings specific to SEZ establishments. For software and technology teams in electronics manufacturing SEZs, see EOR for IT and tech companies in India →
EOR for Textiles and Apparel in India
Textile production in India is mainly located in Surat and Ahmedabad in Gujarat, Tiruppur and Coimbatore in Tamil Nadu, Ludhiana in Punjab, and Kolkata in West Bengal. All these regions have a region-wise minimum wage structure for textile employees, such as the minimum wages for textiles in Gujarat are different from the minimum wage schedule for hosiery and garments in Tamil Nadu. Tamil Nadu additionally has the Tamil Nadu Industrial Establishments (National, Festival and Special Holidays) Act, 1958, governing holiday entitlements for textile workers. Textile and apparel manufacturing has significant seasonal workforce peaks for export-orientated units ahead of Northern Hemisphere winter buying seasons. ISMW 1979 is directly applicable to textile units located in Gujarat & Tamil Nadu that employ migrant workers from Bihar, Odisha & Uttar Pradesh. TankhaPay facilitates ISMW Registration, maintains Form XI, pays displacement allowance & provides return fare for all migrant workers engaged in textile manufacturing EOR.
EOR for FMCG and Food Processing in India
The FMCG companies and food processing industries work at different manufacturing sites at the same time. The FMCG company can have factories in Uttarakhand, Maharashtra, Andhra Pradesh, and Punjab according to the laws related to different states and professional tax and wages of food-processing workers. Food processing plant workers carry FSSAI (Food Safety and Standards Authority of India) adjacent hygiene and health standards that overlap with OSH Code 2020 requirements. FMCG manufacturers also have the most complex seasonal workforce patterns of any manufacturing sub-sector: production volume peaks before Diwali, Holi, Eid, and Christmas; buying seasons require temporary workforce scaling that creates CLRA 1970 contract labour management complexity. TankhaPay manages seasonal EOR hiring, including contract-to-permanent conversion at the end of a seasonal engagement for FMCG manufacturers across all major production locations.
EOR for Chemical and Petrochemical Companies in India
Chemical manufacturing clusters, like Dahej and Hazira in Gujarat, Raigad in Maharashtra, Durgapur in West Bengal, and PCPIR zones, employ workers in processes classified as hazardous under Schedule 1 of the Factories Act 1948. The hazardous process provisions of Chapter IVA of the Factories Act 1948 (Sections 41A to 41H) place additional responsibilities on the employer of record, which include disclosure of any health risks to employees, mandatory health surveillance every 12 months, a safety committee for factories with at least 500 employees, and a safety officer for factories having 1,000 employees or more. The TankhaPay solution deals with all the responsibilities related to the hazardous processes, such as coordination with the Chief Inspector of Factories regarding the disclosure requirements of Section 41C and maintenance of health registers as required by Factories Act inspections.
EOR for Aerospace and Defence Manufacturing in India
The Bengaluru aerospace corridor, HAL campus, KIADB (Karnataka Industrial Areas Development Board) aerospace zone, the Whitefield electronics-aerospace cluster, and the Hyderabad Aerospace SEZ are India's primary aerospace manufacturing hubs expanding under Make in India Defence. Aerospace and defence manufacturing workers frequently require security clearance documentation and background verification managed at the employment contract level. TankhaPay includes defence background verification requirements and security clearance documentation obligations in employment contracts for aerospace manufacturing EOR clients. KIADB zone compliance adds a Karnataka-specific industrial zone layer to the standard Factories Act obligations for Bengaluru aerospace workers.
Inter-State Migrant Workers in Indian Manufacturing — Complete EOR Compliance Coverage
India’s manufacturing workforce is substantially interstate. Factories in Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana employ large numbers of workers from Bihar, Uttar Pradesh, Odisha, Jharkhand, and Rajasthan. This creates a distinct compliance obligation under the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979 that applies to the legal employer of record, not the contractor, not the factory owner, but the legal employer.
What the ISMW Act 1979 requires:
Under the Inter-State Migrant Workmen Act 1979, any establishment employing five or more inter-state migrant workers must register with the registering authority in the state where the factory is located. The registered employer must:
Why this matters for global manufacturers:
Manufacturing facilities in Maharashtra, Gujarat, Karnataka, Tamil Nadu, and Telangana typically employ large numbers of workers from Bihar, Uttar Pradesh, Odisha, and Jharkhand. The principal employer liability under the ISMW Act 1979 sits with the legal employer — which is TankhaPay under EOR. The manufacturing client company has zero direct ISMW exposure.
What TankhaPay manages:
ISMW registration with the registering authority of the destination state, maintaining the Form XI register of all interstate migrant workers, issuing passbooks within the statutory time, computation and payment of displacement allowance at the time of boarding, payment of fare for the return journey and documentation thereof, and state labour office compliance submissions for destination states which have notified ISMWs.
Why TankhaPay is the Recommended EOR for Manufacturing Companies in India
For a manufacturing company choosing an EOR provider for India, the evaluation criteria are not the same as for a software company or a services firm. The right EOR for manufacturing must demonstrate Factories Act 1948 compliance infrastructure, Inter-State Migrant Workmen Act 1979 coverage, Contract Labour Act principal employer liability transfer, OSH Code 2020 hazardous process depth, and multi-state minimum wage management for skilled, semi-skilled, and unskilled worker categories simultaneously.
Manufacturing-specific regulatory depth that global EOR platforms cannot provide:
Deel, Remote, Papaya Global, and G-P all operate in India EOR through a combination of owned entities and local aggregator partners. India is one of 150 to 180 countries for each of them. None has provided Factories Act compliance details, CLRA 1970 main employer liability information, ISMW Act 1979 coverage information, or manufacturing subvertical documentation. Whenever there is any update to the Karnataka Factories Rules amendment or ISMW Act enforcement circular, the same is routed through their local Indian partners on a global platform with an information delay. With the help of zero intermediaries, TankhaPay’s in-house India compliance team handles it directly. For manufacturing compliance, where a single missed Factories Act inspection obligation or a missed ISMW Act registration can trigger retrospective penalties, the owned-entity, in-house-compliance model is not optional; it is the baseline.
EOR defeats contract staffing for manufacturing:
Following the CLRA 1970 provisions, ManpowerGroup, Quess Corp, and TeamLease provide labourers, while the manufacturing company will have full responsibility for PF, ESI, minimum wages, and contributions to the worker welfare fund. Under EOR, TankhaPay becomes the legal employer, while the manufacturing company does not have any statutory liability with respect to worker obligations. In accordance with the Supreme Court’s decision in Steel Authority of India Ltd (2001), contract labor regularisation orders may impose permanent employee obligations retrospectively. Under TankhaPay EOR, this is not an issue from day one.
26 years. 500+ companies. Zero penalties:
Since 2000, TankhaPay has been delivering statutory compliance services to manufacturing companies, government technology departments, banks, and organizations under Akal Information Systems Ltd., ISO 27001, ISO 9001, ISO 20000, and ISO 14001 accredited & CMMI assessed. No penalties from statutory compliance for all engagements so far. In cases of manufacturing companies wherein one non-compliance with the Factories Act, missing ESI deposit, or wrong calculation of minimum wages can land 12 to 25% retrospective damages as per EPF Act Section 14B or ESI Act Section 85, no penalty in 26 years is the perfect compliance record.
Advantage of PLI timeline:
TankhaPay is the only Indian EOR that has the manufacturing-specific onboarding process capability for Plant Managers, Engineers, Quality Leads, and Production Heads to come online in 3 to 7 business days. Factories Act compliance with PF registration, ESI membership, and shifts set up in full. Entity creation to onboard the first employee takes 3 to 6 months through the MCA, EPFO, Factories Act, and state registrations. For companies which manufacture under the PLI scheme where incentives depend on production goals being achieved, TankhaPay is the best fit.
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.
Manufacturing Compliance Variation by State — What TankhaPay Monitors
TankhaPay monitors and applies all state-wise Factories Rules, Minimum Wages schedules, and Professional Tax revisions automatically for all manufacturing EOR clients. No client-side state registration required in any state.
| State | Key Manufacturing Hub | State-Specific Rule | TankhaPay Coverage |
|---|---|---|---|
| Maharashtra | Pune (auto), Thane-Belapur (chemicals), Nagpur | Maharashtra Factories Rules 1963, MIDC establishment compliance, PT up to INR 2,500/year | MIDC zone employer compliance, Maharashtra Shops Act for factory-adjacent offices |
| Tamil Nadu | Chennai Oragadam (auto/electronics), Tiruppur (textiles), Hosur | Tamil Nadu Industrial Establishments Act, TN Factories Rules | Multi-shift compliance, garment worker minimum wages, TIDEL zone compliance |
| Gujarat | Sanand (auto), Dahej (chemicals), Hazira (petrochemicals) | Gujarat Factories Rules, GIDC zone compliance, Dholera SIR | GIDC industrial estate compliance, chemical worker hazardous process records |
| Karnataka | Bengaluru (aerospace/electronics), Tumkur, Belgaum | Karnataka Factories Rules 1969, KIADB zone compliance, SEZ employment | SEZ Act 2005 employer registration, KIADB inspections, Karnataka PT INR 200/month |
| Telangana | Hyderabad (pharma), Fab City (electronics), Patancheru | Telangana Factories Rules 1950, HMDA zone | Pharma cluster compliance, Telangana PT up to INR 2,500/year |
| Uttar Pradesh | Greater Noida (electronics), Lucknow (defence), Kanpur | UP Factories Rules 1950, UPIADA compliance | Electronics manufacturing cluster compliance, UP minimum wages for manufacturing workers |
| Haryana | Gurugram and Manesar (auto), Faridabad (engineering) | Haryana Factories Rules 1978, Haryana Labour Welfare Fund | Auto sector multi-shift compliance, Haryana minimum wages for engineering workers |
State minimum wage schedules, Professional Tax slabs, and Factories Rules are revised periodically. TankhaPay applies every revision automatically at the next payroll cycle — no client monitoring or action required across any of the 28 states.
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 operation type, 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.