versatileclub
See pricing Speak to sales

PEO in India: What the Term Really Buys You

In the US, a PEO co-employs your staff alongside you. Indian law recognises no such co-employment, so every credible provider selling PEO services in India is actually operating as an employer of record: one legal employer, ours, with you directing the work. We run that model from our Bengaluru entity for a flat $149 per employee monthly, and this page explains the difference before you buy.

Indian law has no co-employment, so a PEO in India is really an EOR: we employ, you direct. Flat $149 monthly per employee from our Bengaluru entity.

Speak to sales EOR vs entity, in detail

G2 4.8 / 5 on G2, from companies employing teams in India through us.

Teams building in India. First hire to full team.

The US PEO model versus what actually works under Indian law.

Six lines show why the co-employment idea does not translate to India, and what replaces it.

PEO as marketed

EOR as delivered

Who the law treats as employer
US-style co-employment splits employer duties between you and the PEO, a structure Indian statutes never contemplate.
One employer of record, our entity, holds every statutory duty cleanly.
Your entity requirement
A true PEO arrangement presumes you already have an Indian entity to co-employ through.
No entity needed on your side, today or ever.
Where compliance liability lands
Ambiguous employer status leaves inspectors free to pursue whichever party is easiest to reach.
Statutory notices carry our registration and stop at our desk.
PF, ESIC and TDS accounts
Co-employment still requires employer codes registered to an Indian company you control.
Everything files under our established employer accounts.
Time to first hire
Entity first, registrations second, hire third: months before anyone starts.
A compliant offer can be out this week and payroll live in five days.
Cost structure
Many PEO-branded quotes take a percentage of each salary, so fees climb with every raise.
$149 flat monthly per employee, $129 past twenty heads, never salary-linked.

PEO as marketed
Who the law treats as employer US-style co-employment splits employer duties between you and the PEO, a structure Indian statutes never contemplate.
Your entity requirement A true PEO arrangement presumes you already have an Indian entity to co-employ through.
Where compliance liability lands Ambiguous employer status leaves inspectors free to pursue whichever party is easiest to reach.
PF, ESIC and TDS accounts Co-employment still requires employer codes registered to an Indian company you control.
Time to first hire Entity first, registrations second, hire third: months before anyone starts.
Cost structure Many PEO-branded quotes take a percentage of each salary, so fees climb with every raise.

EOR as delivered
Who the law treats as employer One employer of record, our entity, holds every statutory duty cleanly.
Your entity requirement No entity needed on your side, today or ever.
Where compliance liability lands Statutory notices carry our registration and stop at our desk.
PF, ESIC and TDS accounts Everything files under our established employer accounts.
Time to first hire A compliant offer can be out this week and payroll live in five days.
Cost structure $149 flat monthly per employee, $129 past twenty heads, never salary-linked.
Month 1
Entity paperwork opens with the MCA
Month 2
Incorporation certificate issued
Month 3
PAN, TAN and GSTIN registrations follow
Month 4
PF and ESIC employer codes granted
Month 5
Banking and payroll systems configured
Month 6
The entity a PEO would need is finally ready

Ambiguity about the employer never softens a penalty.

Whichever label a provider uses, late PF money accrues 12% yearly interest with damages scaling to 25%, and recovery lands on whoever the registration names.

With us the registration names Foo Falcon Technologies, so the exposure has one clear owner and it is not you.

Speak to sales
A late challan's growth curve, day one to day 180 Statutory interest plus damages combined
₹6,200 Day 1
₹41,500 Day 30
₹1,84,000 Day 90
₹3,12,000 Day 180
Modelled on a modest wage bill with a single missed date. Larger payrolls compound faster.
Which party the department pursues
Co-employment ambiguity You
Sole employer: Versatile Versatile

Read a PEO India quote carefully: if the provider is the sole legal employer, you are buying an EOR whatever the label says. Compare provider models with your numbers in the EOR versus entity calculator before signing anything.

One legal employer, zero ambiguity about who does what.

We hold the employment and its obligations. You hold the work, the roadmap and the team relationships. Nothing overlaps and nothing falls between.

You run

  • Day-to-day direction and priorities
  • Compensation levels and promotions
  • Team culture and performance

We handle

  • Sole legal employment on our entity
  • Statutory registrations and filings
  • Payroll with monthly documentation
  • HR administration and settlements

You run
  • Direct the daily work
  • Own targets and reviews
  • Set salaries and raises
  • Keep client relationships

We handle
  • Employ as sole legal employer
  • Hold PF and ESIC codes
  • Run the monthly payroll
  • File and archive returns
  • Administer leave and records
  • Close exits compliantly

When something happens in India, it is ours.
A labour inspector asks who employs the team Our registration answers
A payroll dispute is raised We resolve and document
Employment law shifts We adjust and inform you

A named compliance manager owns your account. Not a queue, not a chatbot, one person who already knows your headcount and your last filing.

Account managerMedian first reply 4 to 6 hours
Recruitment coordinatorBrief to shortlist 9 days
Finance associateFilings on time 8 / 8

We say EOR because that is what it is.

Plenty of providers market PEO services in India while quietly operating as EORs. We name the model up front so your legal team reviews the structure that actually exists.

India-only depth, not a country checklist.

Global platforms treat India as one of ninety markets. Our entire operation exists for Indian employment, which shows when a state PT notification changes mid-year.

Flat fee, not a salary percentage.

PEO-style quotes often skim 3% to 8% of payroll, so your provider profits from every raise you give. Our $149 never reads your salary data.

The exit route is built in.

Incorporate your own entity later and your people transfer across with tenure, PF and gratuity intact, at no charge from our side.

We say EOR because that is what it is.

Plenty of providers market PEO services in India while quietly operating as EORs. We name the model up front so your legal team reviews the structure that actually exists.

A mislabelled contract is a diligence problem waiting.

India-only depth, not a country checklist.

Global platforms treat India as one of ninety markets. Our entire operation exists for Indian employment, which shows when a state PT notification changes mid-year.

Depth in one country beats presence in ninety.

Flat fee, not a salary percentage.

PEO-style quotes often skim 3% to 8% of payroll, so your provider profits from every raise you give. Our $149 never reads your salary data.

Your compensation budget belongs to your employees.

Moving someone across

Leaving a PEO-branded provider? The switch is one cycle.

Teams sitting with another provider, whatever it calls itself, move onto our registration between two payroll runs with service history preserved and no interruption in salary or benefits.

Tenure Kept
Gratuity clock Kept
PF and UAN Continuous
Payroll gap 0 days

One switch brought 200 employees across in a single scheduled run.

Supporting evidence

Confirm the legal employer before you shortlist.

The employer on every contract is Foo Falcon Technologies Pvt Ltd, Bengaluru, registered 2022.

  • Incorporation
  • GST
  • EPFO code
  • ESIC
  • Shops and Establishments
  • PAN and TAN
  • Udyam MSME
What we verify
  • Incorporation Ministry of Corporate Affairs
  • GST Goods and Services Tax
  • EPFO code Employees Provident Fund Organisation
  • ESIC Ministry of Labour and Employment
  • Shops and Establishments Government of Karnataka
  • PAN and TAN Income Tax Department
  • Udyam MSME Government of India

The registration certificate is one email away, sent as a PDF without a pitch.

200

employees transitioned from another provider onto our registration in one run

33

monthly invoices in an unbroken row for one account across 26 months

5 days

from offer acceptance to payroll accruing for a new hire

G2 4.8 / 5 on G2, from companies employing teams in India through us.

G2 4.8 / 5 on G2, from companies employing through us.

Buyers who searched for a PEO and chose the honest model.

Founders and operators who compared PEO-branded quotes against our EOR describe why they landed here.

Video
Bharath Rasoi KS Rajeshwari Founder, Bharath Rasoi
Video
Open Theatre Anand Raj Founder, Open Theatre
Abid Hassan Verified client
Sensibull
“They moved fast and took the whole compliance side off my plate. For a founder making an early India hire, that is exactly what you want.”
Abid Hassan Founder and CEO, Sensibull
Via G2
Moonshot
“Every option was either 'set up your own entity' or a platform that quotes a great price then hits you with add-ons. Versatile was the one that actually made it simple. First payroll ran on time. No scramble.”
Angad S. Co-Founder, Moonshot
Via G2
Digital Marketing Agency
“Contracts, PF, ESI, TDS and payroll all in one place. Invoicing in USD meant zero exchange rate surprises. The compliance rigour is genuinely reassuring.”
Vedant T. Founder, Digital Marketing Agency
Via G2
Design Studio
“Setting up in a new country can get messy fast, but their India EOR made onboarding feel easy. The team is responsive, clear, and great to work with.”
Setu C. Studio Owner, Design Studio
Via G2
US Startup
“We used Versatile to hire our first employee in India after months of putting it off because the compliance side seemed like a mess. They walked us through it and now we don't think about it.”
Verified US Founder First-time Founder, US Startup
Via G2
Mid-Market Tech Co.
“Versatile consistently delivered work that was both strategically sharp and execution-ready. Their turnaround times are impressive, and they think about problems the way an in-house team would.”
Shivani K. Senior Manager, Tech TA
Via G2
Growth-stage Startup
“Their team was highly responsive, professional, and easy to work with. They made a complex process feel simple.”
Mukul S. Core Team, Growth-stage Startup

Case studies.

Largest food delivery app in India, decacorn View case study The world's largest professional network, part of Microsoft View case study Legacy US software company, publishing platforms View case study

PEO-grade service, EOR structure, one flat number.

Everything a PEO quote promises, delivered through the model Indian law supports: $149 per employee monthly, $129 past twenty. Recruitment optional at 12% of CTC.

Employer of Record

The real India PEO
$149 /employee/mo

Sole legal employment, payroll, filings and HR administration in a single flat fee. Automatic $129 repricing once headcount clears twenty.

Start hiring
  • Sole-employer contract on our entity
  • PF, ESIC, PT and TDS under our codes
  • Monthly payroll with full documentation
  • Consolidated USD invoice each month
  • First hire live within five days
  • Dedicated compliance owner
  • Employee portal and payslips
  • Free transfer when you incorporate
  • Sole-employer contract on our entity
  • PF, ESIC, PT and TDS under our codes
  • Monthly payroll with full documentation
  • Consolidated USD invoice each month
Four more inclusions
  • First hire live within five days
  • Dedicated compliance owner
  • Employee portal and payslips
  • Free transfer when you incorporate

Comparing us against a PEO quote? Sales will walk the line items with you.

Recruitment

Sourcing when you need it
12% of annual CTC

Junior and mid-level mandates at 12%, invoiced on day ninety. Senior searches at 15%, leadership scoped case by case. Your own candidates onboard free.

Send us a role
  • Nine days to a vetted shortlist
  • Role-specific salary benchmarks
  • Interviews arranged around you
  • Billing deferred to day ninety
  • Senior mandates at 15%
  • Leadership quoted individually
  • No charge for referred candidates
  • Placement on either entity
  • Nine days to a vetted shortlist
  • Role-specific salary benchmarks
  • Interviews arranged around you
  • Billing deferred to day ninety
Four more details
  • Senior mandates at 15%
  • Leadership quoted individually
  • No charge for referred candidates
  • Placement on either entity

Several openings? Sales will price the batch as one mandate.

Volume pricing, self-applying

$149 $129 /employee/mo

Seat twenty-one triggers $129 for the whole roster in that same cycle, no request required.

What the flat fee covers

  • Sole legal employment, cleanly held
  • Monthly payroll and payslip delivery
  • PF, ESIC, PT, TDS, receipts enclosed
  • Gratuity accrual from day one
  • Group health insurance access
  • RBI-rate currency conversion
  • Background checks and Form 16
  • Compliant exits and settlements

Cross twenty and everyone reprices

$149 $129 /employee/mo

Every existing seat joins the $129 rate the month the threshold is passed.

Covered by the fee

  • Sole legal employment, cleanly held
  • Monthly payroll and payslip delivery
  • PF, ESIC, PT, TDS, receipts enclosed
  • Gratuity accrual from day one
  • Group health insurance access
  • RBI-rate currency conversion
  • Background checks and Form 16
  • Compliant exits and settlements

Recruitment bills at 12% of annual CTC on day ninety for junior and mid-senior roles. Salaries and statutory employer costs pass through at actuals with no margin. Equipment and workspace bill at usage. Test the whole structure in the EOR versus entity calculator first.

PEO versus EOR in India, asked and answered.

The eight questions buyers researching PEO India put to us, including the honest one about when neither model fits.

What is a PEO in the Indian context?

The term is borrowed from the US, where a professional employer organization co-employs staff jointly with the client. Indian employment law recognises no co-employment, so providers offering PEO services in India actually act as employers of record: they are the single legal employer and you direct the work commercially.

What is the difference between a PEO and an EOR in India?

In practice, in India, almost nothing but the label. Because co-employment does not exist here, any compliant arrangement makes the provider the sole employer, which is the EOR model. The distinction matters in the US; in India the real question is whether your provider holds the employment cleanly. Our EOR versus PEO guide linked below goes deeper.

Do we need an Indian entity to use a PEO or EOR?

For an EOR, no: your team is employed on our Bengaluru registration and you never touch Indian incorporation. A genuine US-style co-employment would require your own Indian entity, at which point you would not need the provider for employment at all.

What does PEO-style service cost in India?

Quotes branded PEO frequently price at 3% to 8% of each salary, which scales against you as pay rises. We charge $149 per employee per month regardless of salary, dropping to $129 for the full roster past twenty heads, with salaries passed through at actual cost.

Who handles PF, ESIC and TDS under this model?

We do, under employer codes registered to Foo Falcon Technologies Pvt Ltd. Employee PF at 12% with our matching employer share, ESIC at 3.25% where gross pay qualifies, TDS deposited by the 7th, PF and ESIC challans by the 15th, all with receipts forwarded monthly.

Is the team really ours if you are the legal employer?

Commercially, entirely. You choose who is hired, what they earn, what they build and how they are reviewed. The service agreement locks in your control of the work while employment formality and statutory duty sit on our side. If you incorporate later, everyone transfers to your entity with history intact.

How fast can we start compared to setting up for a PEO?

A co-employment structure would wait roughly six months for your entity and registrations. Through our EOR, a signed offer can go out within days and the hire is on live payroll in five working days.

When should we avoid both PEO and EOR?

With an existing Indian subsidiary and finance team, hire directly and buy payroll processing at most. For projects under three months, use a contractor agreement. And beyond forty to fifty permanent heads, your own entity usually becomes the better economics, a crossover we flag rather than obscure.

Longer reading: EOR vs PEO explained · Best PEO India ranked · India payroll hub

Tell us where you are on the decision.

A role you want to hire, a team you want moved, or just the two routes to compare. A named person replies in 4 to 6 hours.

A named person replies in 4 to 6 hours, not an autoresponder.

We use these details to respond to your enquiry.

A named person replies in 4 to 6 hours, not an autoresponder. We use these details to respond to your enquiry.

What the first call covers

30 minutes

A cost comparison for your headcount, on your numbers, both routes.

  • A written cost breakdown
  • Entity documents before the call
  • PF, ESI, TDS, termination law
  • No follow-up sequence
Book a call →

You pick the time, we send a Meet link. Any timezone.

See pricing Speak to sales