Employer of Record: To Simplify Subsidiary Formation in India

A global technology company wanted to establish operations in India but was concerned about the complexities and time required for subsidiary formation. The traditional approach of setting up a legal entity in India would have involved significant time, cost, and regulatory compliance challenges. The company needed to hire employees quickly to capitalize on market opportunities but was deterred by the lengthy process of entity formation, which could take several months. They also lacked expertise in Indian corporate law, tax regulations, and employment compliance requirements.

Remunance provided an EOR solution that allowed the company to start operations in India immediately without the need for subsidiary formation. The comprehensive solution included:

- Immediate employee hiring capability through EOR services

- Complete payroll and benefits administration

- Full compliance with Indian labor laws and tax regulations

- HR support and employee management

- Legal and regulatory guidance

- Ongoing compliance monitoring and reporting

- Strategic advice on eventual subsidiary formation when the time was right

This approach allowed the client to test the Indian market and build their team while deferring the complexity of entity formation until they were ready to make a long-term commitment.

The EOR solution enabled the company to:

- Start operations in India within weeks instead of months

- Hire and onboard employees immediately

- Save significant costs associated with entity formation and maintenance

- Maintain full compliance with all Indian regulations

- Focus resources on core business activities rather than administrative setup

- Test market viability before making long-term commitments

- Build a strong foundation for eventual subsidiary formation

The company successfully established a productive team in India and later proceeded with subsidiary formation once they had validated their business model and market presence.