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India EOR vs Opening an Entity

When to use an Employer of Record vs setting up your own Indian entity.

When expanding to India, you have two main paths: use an Employer of Record (EOR) or open your own entity. **EOR (Employer of Record)** - Fast setup: start hiring in weeks - No capital requirement for entity formation - Compliance handled by the EOR - Ideal for: startups, small teams, testing the market **Opening an Entity** - Requires incorporation (Private Limited, etc.) - Higher upfront cost and time (months) - You manage compliance directly - Ideal for: large teams, long-term commitment, specific corporate structure needs For most startups hiring 5-50 people in India, an EOR like Nova Workforce offers the best balance of speed, cost, and compliance.