EOR vs setting up your own India entity
When an Employer of Record wins, and when your own entity is worth it.
C Cyphertree 5 min read 8 views
There are two ways for a European company to employ people in India: set up your own legal entity, or hire through an Employer of Record. Both are valid. Which one fits depends mostly on how many people you plan to employ, and how soon you need them.
| Dimension | Employer of Record | Your own entity |
|---|---|---|
| Time to first hire | Minutes to days | Months |
| Upfront cost | Low, a per-employee subscription | High: registration, legal, advisors |
| Compliance | Handled for you, built in | Your responsibility, ongoing |
| Payroll and filings | Included | You appoint and manage providers |
| Exit or wind-down | Stop the subscription | Formal entity closure |
| Best when | Starting, or a small-to-mid team | A large, long-term India presence |
When an EOR wins
If you are hiring your first people in India, or building a team of a handful to a few dozen, an Employer of Record is almost always the faster, lighter choice. A first hire can be live in minutes rather than months, compliance is carried for you, and there is no entity to wind down if plans change. You keep your focus on the team, not on registrations and filings.
When your own entity is worth it
At a larger, long-term scale, a wholly owned entity can make sense. Past a certain headcount the fixed cost of setup and administration amortises, and some companies want the direct legal presence for strategic reasons. That is a real path, and the right one for some.
The practical middle
Many companies start with an EOR to move fast, then revisit an entity once the India team is large and settled. Starting on an EOR does not close the door; it keeps it open while the team proves itself. Cyphertree is built for that first stretch and well beyond it, at one flat price per employee.
Estimate the cost with the cost calculator, read how it works, or book a short demo.