As remote work becomes the new norm, companies across the US and UK are increasingly looking at India to build distributed teams. With a vast talent pool, competitive salaries, and strong English proficiency, India is an ideal choice for scaling fast without draining resources.
But hiring talent across borders isn’t as easy as sending an offer letter. You’ll need to comply with local labor laws, run payroll in a different currency, manage taxes, and ensure your operations are legally sound.
This is where Employer of Record services in India step in.
In this blog, we’ll break down what US and UK founders need to know about hiring remote teams in India through EOR solutions, and how Momentum91 can make it frictionless.
India isn’t just a low-cost outsourcing hub anymore. It’s home to top-tier engineers, marketers, designers, and customer support professionals.
Key advantages for US and UK companies:
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You may think hiring a freelancer or signing a remote contract is enough but it isn’t.
To employ someone in India legally, you typically need to set up a local legal entity. This involves:
This process can take 3–6 months, requires thousands of dollars, and ongoing administrative effort.
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An Employer of Record (EOR) is a third-party organization that legally employs your team members in India on your behalf.
You manage their day-to-day work. The EOR handles everything else related to compliance, taxes, payroll, and HR.
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Momentum91 is an India-based partner helping global companies hire and manage remote teams quickly, legally, and without setting up a local business.
With Momentum91, you get:
Momentum91 works as your India HR and legal partner, so you can scale with peace of mind.
Hiring through an EOR is simpler but it still requires understanding a few key things about the Indian employment landscape:
India has strict rules around who is an employee vs contractor. EOR ensures your team is properly classified to avoid misclassification fines.
Indian law mandates the following for full-time employees:
Momentum91 automatically integrates these into your monthly payroll, you don’t have to track or calculate anything.
In India, standard notice periods are 30–90 days. Your employment agreements will account for this and help with exit compliance.
Salaries in India aren’t just "base pay." They include:
Q: Can I pay Indian employees directly in USD via Wise or PayPal?
A: Technically yes, but it’s non-compliant. You’re not deducting taxes or offering statutory benefits opening you to legal issues. An EOR solves this.
Q: What if I want to move the employee to a full-time role later?
A: EOR acts as a stepping stone. You can hire via EOR for 6–12 months and later transition the employee to your own India entity (if you open one). Momentum91 can assist with this transition too.
Q: Is there a minimum number of hires to use Momentum91?
A: No. Momentum91 works with companies hiring even one remote employee.
A UK-based SaaS company wanted to hire a 4-member support team working India day-shift hours.
Within 10 days, the team was onboarded and operational.
India is the ideal location to scale your remote team but only if you do it right. Instead of struggling with local compliance, paperwork, and HR complexities, let M91 take over the heavy lifting. You focus on growing your team and your business while M91 takes care of the rest.
M91 helps these Ambitious Firms Build Mission-Aligned Tech Teams.
