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Hire an Employee Without Setting Up a Local Entity
Hire your first employee, build a small overseas team or test a new market without immediately incorporating a local entity.
Hire employees in India, UAE, Singapore and other markets through an Employer of Record (EOR). IMC manages employment contracts, payroll, statutory compliance and employee administration while you manage the employee’s day-to-day work.
Tell us the country, number of employees and expected start date. We’ll assess the appropriate hiring structure.
Who We’ve Worked With
Can You Hire an Employee Without Setting Up a Local Company?
Yes. An Employer of Record (EOR) acts as the official legal employer in the worker’s home country, handling local contracts, payroll, and statutory tax compliance. Meanwhile, your company maintains direct day-to-day management of the employee’s work and performance.
How It Works: US Company Hiring in India
Example, When a US company hires an employee in India through an EOR:
- Seamless Onboarding: The EOR issues a locally compliant employment contract under Indian labor laws (incorporating central and state-specific regulations).
- Statutory Payroll & Compliance: The EOR manages Indian statutory contributions, including Employees' Provident Fund (EPF), Employees' State Insurance (ESI), Tax Deducted at Source (TDS/income tax), and state Professional Tax.
- Separation & Benefits: The EOR administers local leave policies, statutory maternity leave, and long-term severance provisions like Gratuity.
- Operational Directives: Your company directs daily deliverables, project management, performance reviews, and software access.
When Does EOR Make Sense?
Hiring your first employee overseas
You have found the right candidate but don't have a local entity.
Solution: Use an EOR to employ the person locally while you manage their day-to-day role.
Testing a new market
You want to hire 1 to 5 employees before committing to a subsidiary.
Solution: Start with an EOR and evaluate the market before establishing your own entity.
Hiring remote employees
Your employee lives in another country and you don't have a legal employment structure there.
Solution: Assess the appropriate EOR and payroll structure.
Hiring foreign nationals
You need to employ someone who requires local immigration or work authorisation.
Solution: Combine EOR with immigration support where applicable.
Moving from EOR to your own entity
Your team has grown and you now need your own subsidiary.
Solution: Plan the transition from EOR employment to your new local entity.
EOR vs Setting Up a Local Entity
| Decision Factor | EOR | Local Entity |
|---|---|---|
| First employee | Suitable | Usually excessive |
| Small overseas team | Suitable | May be considered |
| Market testing | Suitable | Less suitable |
| Entity registration | Not required for the client | Required |
| Local payroll | Managed by EOR | Managed by company |
| Employment compliance | Managed by EOR | Company's responsibility |
| Market entry speed | Faster | Slower |
| Long-term large team | Review as team grows | Usually more suitable |
Where Can You Hire Through IMC?
UAE
Hire employees in the UAE while IMC manages local employment and payroll requirements.
EOR Services in DubaiSingapore
Hire employees in Singapore without registering your own local entity.
EOR Services in SingaporeEmployer of Record Services for International Hiring
Expand your global workforce without setting up local entities. IMC manages employment administration, payroll, and local compliance—so you can focus on driving day-to-day performance
Seamless Onboarding & Offboarding
Hire employees without a local entity and manage their employment from onboarding through exit. We coordinate employment contracts, required documentation and local joining and termination procedures.
Global Mobility Management
Support international employee movements with assistance covering immigration, work permits, salary benchmarking and other requirements related to cross-border employment.
Global Payroll Processing
Our EOR payroll services cover salary processing, statutory deductions and payroll administration across different countries and currencies, based on applicable local requirements.
Hire Employees Internationally
Hire employees internationally without immediately establishing a local company. Our EOR services support businesses hiring overseas employees while managing local employment administration and statutory requirements.
Employee Support
Employees receive local support for payroll, employment documentation, benefits and HR-related queries throughout their employment.
Regulatory Compliance & Local Assistance
We manage local employment requirements, statutory registrations, payroll obligations and required documentation applicable to the employee's location.
Why Choose IMC as Your Employer of Record Provider?
Onboarding Across Borders
We coordinate the employment documentation and onboarding requirements needed to hire employees in different countries.
Local Employment Compliance
Our team handles local employment requirements, including contracts, statutory obligations and required employee documentation.
EOR Payroll Services
Payroll processing includes salary payments, applicable deductions, statutory contributions and required payroll administration.
Visa and Immigration Assistance
Where immigration support is required, we can assist with work permits, employment visas, renewals and related documentation.
Support Throughout the Employee Lifecycle
Our EOR support covers the employee lifecycle from onboarding and payroll through changes in employment and eventual offboarding.
HR Support and Advisory
Employees and employers can receive assistance with HR administration, employment documentation and country-specific requirements.
Scale Your Business Globally With IMC's EOR Services
IMC provides EOR services for international hiring, helping companies employ people in countries where they do not have their own local entity. Our support covers employment contracts, payroll, statutory requirements, immigration coordination and employee administration.
If you are planning to hire an overseas employee without setting up a local entity, we can assess the appropriate employment structure for your situation.
See How We Assist With Workforce Movement and Reporting
See How We Assist With Workforce Movement and Reporting
Resources
Catch up on our latest articles, newsletters, and practical views on global operations, regulatory updates, and client-focused topics.
FAQs
Yes, a foreign company can hire employees in India without establishing its own Indian entity by using a suitable EOR arrangement. The EOR becomes the local employer and handles employment documentation, payroll and applicable statutory obligations.
A foreign company should not simply pay a full-time Indian employee directly from overseas without considering the employment, tax, payroll and permanent establishment implications. The employee’s role and working arrangement also need to be assessed carefully.
No. Using an EOR does not automatically eliminate permanent establishment (PE) risk.
An EOR can reduce certain risks associated with establishing a local employment presence, but PE depends on the actual activities carried out in the country. For example, the employee’s authority to negotiate or conclude contracts, the nature of the business activities performed locally and the degree of control exercised by the foreign company can be relevant.
This is particularly important for foreign companies hiring in India. An EOR structure should therefore be reviewed alongside the applicable tax treaty, local tax rules and the employee’s actual responsibilities.
Before hiring through an EOR, IMC can help assess the proposed employment structure and identify areas that may require tax or legal review.
Yes. An EOR can be used to hire one employee without setting up a local entity. This is particularly useful when a company needs to hire its first employee in a new country and does not yet want to establish a subsidiary or branch.
The EOR can manage the employment contract, payroll, statutory requirements and employee administration while the client company manages the employee’s daily responsibilities.
EOR costs vary by country and usually depend on the employee’s salary, number of employees, statutory costs, benefits, payroll requirements and immigration needs.
The total cost generally includes:
- Employee salary
- Employer statutory contributions
- Employee benefits, where applicable
- EOR service fees
- Payroll administration
- Immigration or work permit costs, where applicable
For this reason, there is no single EOR price that applies to every country or employee.
The timeline depends on the country, employment documentation, payroll setup, background checks and immigration requirements.
For a straightforward hire where no work visa is required, onboarding can be relatively quick once the EOR agreement and employee documentation are completed. Visa and work permit requirements can add time.
The EOR process generally involves:
EOR agreement → employee details → employment offer → local employment contract → statutory registration → payroll setup → onboarding
For India, current EOR providers report onboarding timelines ranging from a few days to a few weeks depending on the circumstances.
Yes. Payroll administration is one of the main functions of an EOR.
Depending on the country and employment structure, the EOR may handle salary processing, applicable tax withholding, statutory contributions, payroll records and employment-related filings.
In India, for example, EOR arrangements can involve payroll and statutory requirements such as PF, ESI, Professional Tax and tax withholding, depending on the employee and applicable rules.
The client company generally pays the EOR, and the EOR manages the employee’s local payroll obligations.
In some countries, an EOR can support or sponsor the employee’s work authorisation because it is the local employer. However, the exact arrangement depends on the country’s immigration rules and the EOR’s ability to sponsor foreign workers.
For example, UAE work permit processes require an eligible employer and compliance with the requirements set by the Ministry of Human Resources and Emiratisation.
Visa sponsorship should therefore be confirmed based on the employee’s nationality, job, hiring country and visa category before employment begins.
There is no fixed employee number at which a company must move from EOR to its own entity.
An EOR may continue to make sense for a small team, short-term market entry or a company that does not yet know how large its local operation will become.
Your own entity may become more suitable when you have:
- A growing local workforce
- Long-term operations in the country
- Significant local revenue
- A need for your own local contracts and business operations
- Activities that require your own registered presence
- EOR costs that are becoming significant compared with maintaining an entity
The decision should consider headcount, business activity, tax exposure, regulatory requirements and long-term plans, rather than employee count alone.
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