Challenge
A Singapore-based SaaS provider with a 20-person team of developers and support staff in India faced the challenge of strategic reorganization that required closing their Indian entity while maintaining product continuity. The company needed to restructure their operations and reduce entity-related costs and compliance burden, but they couldn't afford to lose their critical development team and support staff who were essential to their product roadmap and customer support operations. The challenge was executing a compliant entity closure while ensuring zero disruption to product development and customer service.
AYP helped us close our India entity while retaining our core team and keeping our roadmap on track. — Regional HR Director
Solution
AYP Group provided a comprehensive Employer of Record (EOR) solution that enabled the SaaS provider to execute their strategic reorganization while retaining their entire Indian team. The solution included:
- Strategic planning and timing of the EOR transition before issuing termination notices
- Legal termination of all 20 employees from the closing Indian entity with proper compliance
- Immediate re-hiring of all staff under AYP's EOR employment structure
- Seamless transition ensuring continuity of employment with proper notice, ESI/PF, and gratuity payments
- Full compliance with India's Industrial Disputes Act and Labour Code requirements
- Maintenance of existing compensation packages, benefits, and working arrangements
- Complete HR and administrative support throughout the 9-month entity liquidation process
- Ongoing payroll, tax, PF/ESI/gratuity administration under the EOR model
AYP ensured that all legal obligations were met while providing a smooth transition that maintained team integrity and product development capabilities.
Results
The strategic reorganization and entity closure achieved exceptional outcomes:
- 100% staff retention - all 20 developers and support staff were successfully retained under AYP
- Complete compliance with Indian employment laws including proper notice, ESI/PF, and gratuity payments
- No interruption to product roadmap or development timeline
- Successful entity liquidation completed smoothly in 9 months
- Maintained all technical expertise and institutional knowledge
- Preserved customer support capabilities and service levels
- Achieved strategic reorganization objectives while maintaining operational capability
- Continued product development and support operations without maintaining a legal entity
- Seamless transition with zero impact on business operations