Frequently asked questions

An Employer of Record is a third-party organization that becomes the legal employer of your workforce in India. Vedantic Technologies acts as the EOR, handling employment responsibilities including payroll processing, statutory tax withholding, social security contributions, benefits administration, and compliance with applicable Indian labor laws, while individuals perform services for your organization under a structured services arrangement.

A Contractor of Record (COR) is a structured engagement model under which Vedantic acts as the contracting and payment intermediary for independent contractors in India. Under this model, Vedantic manages contractor agreements, payment processing, applicable tax withholding, and compliance obligations, while supporting appropriate classification safeguards to preserve the contractor’s independent status.    The COR model is designed for genuinely independent engagements and includes assessment of role scope, control, exclusivity, and duration to mitigate worker misclassification risk under Indian labor and tax laws.

EOR (Employer of Record) applies to full-time employment, where Vedantic becomes the legal employer and assumes employment law compliance obligations.    COR (Contractor of Record) applies to independent contractors, where Vedantic manages contractor engagement, payment processing, tax withholding where applicable, and classification safeguards—while preserving the contractor’s independent status.

COR is suitable where services are project-based, non-exclusive, outcome-driven, and do not require employer-like control. Where roles resemble ongoing employment or form part of core operations, EOR may be more appropriate to mitigate misclassification risk.

Misclassification of employees as contractors may result in retroactive liability for statutory benefits (including EPF and ESI), penalties and interest, labor law violations, potential GST exposure, and reputational risk. Vedantic’s COR service includes a structured classification assessment to mitigate these risks.

Absolutely. Many of our clients use a hybrid approach - EOR for their core team members who require full-time employment, and COR for project-based specialists or consultants who work as independent contractors. We provide integrated solutions with consolidated billing for both services.

Unlike standardized, volume-driven platforms, Vedantic’s EOR offering is law-firm anchored, with particular emphasis on legal robustness and permanent establishment risk mitigation. Our documentation, commercial framework, and operating mechanics are structured with PE considerations, employment classification, and tax defensibility as core design principles—areas that are often secondary in commoditized EOR models.

A Permanent Establishment is a level of business presence that can trigger corporate tax obligations for a foreign company in India. If a PE is created, profits attributable to Indian operations may become subject to Indian corporate tax, along with associated compliance obligations. Our EOR service is structured to mitigate PE risk through carefully designed employment relationships, contractual allocation of functions, and operational controls.

No EOR arrangement can eliminate PE risk entirely. However, Vedantic’s EOR model is specifically designed to mitigate PE exposure through contractual structuring, role delineation, and operational controls aligned with Indian tax principles and OECD guidance.

Your organization retains operational direction over work outputs and performance objectives, while Vedantic retains employer-of-record responsibilities. This balance is carefully structured to maintain compliance without transferring unintended business presence risk.

Roles involving sales, contracting authority, or customer negotiation require additional structuring considerations. We assess such roles carefully to manage PE and agency risk before implementation.

No, that's the primary benefit of using an EOR. You can build and scale teams in India without establishing a local entity. Vedantic acts as the legal employer, eliminating the need for entity registration while ensuring full compliance with Indian employment and tax laws.

You receive a consolidated monthly invoice covering employee payroll costs, statutory contributions, and our service fee. Invoices may be settled in USD or other agreed currencies, subject to applicable exchange control regulations. Vedantic manages all downstream payroll processing, statutory filings, and local compliance obligations in India.

Once the commercial and services framework is finalized, onboarding can typically be completed within approximately 4–7 business days. Timelines may vary depending on headcount, role complexity, and statutory registration requirements.

Employees in India may be entitled to statutory benefits including Employees’ Provident Fund (EPF), Employee State Insurance (ESI), gratuity (subject to eligibility and tenure), maternity benefits, statutory leave entitlements, and other benefits mandated under applicable labor laws. As Employer of Record, Vedantic administers these benefits and ensures compliance with applicable statutes.

IP protection is built into our employment framework through properly structured agreements that ensure all work product and intellectual property created by employees belongs to your organization. We can implement enhanced IP protection measures for companies in technology, healthcare, and other IP-sensitive industries.

We handle all termination procedures in compliance with Indian labor laws, including notice period requirements, full and final settlement, gratuity calculations if applicable, and all necessary documentation. We ensure the process is legally compliant and smooth for both employer and employee.

Yes, we can manage employees across multiple locations in India through our centralized payroll and compliance management system. We handle state-specific requirements such as professional tax variations and local labor law compliance while providing you with consolidated reporting and billing.

We provide comprehensive ongoing support including monthly payroll processing, tax compliance and filings, HR administration, leave management, employee queries, regulatory updates, compliance monitoring, and dedicated account management. Our law-firm backing ensures you have expert guidance on complex employment matters.

We manage all aspects of tax compliance including TDS (Tax Deducted at Source), professional tax, income tax filings, EPF and ESI contributions, GST compliance for services, and all statutory returns. Our team stays current with changing tax regulations and ensures timely filings to avoid penalties.

We support multinational companies across a broad range of industries including technology, financial services, e-commerce, healthcare, manufacturing, professional services, and more. Our law-firm expertise allows us to adapt to industry-specific compliance requirements and address unique challenges in regulated sectors.

Yes. If you later incorporate an Indian entity, we can support structured employee transitions, including novation of employment contracts and continuity considerations, subject to applicable laws.