Hiring Guides

Setting Up Your First Team in India: A Hiring Guide for Foreign Companies (2026)

A foreign company can hire in India either through its own Indian entity (usually a private limited subsidiary) or, before that entity exists, through an Employer of Record that employs staff on its behalf. Most companies start with a senior local leader or a small core team, budget for 30–90 day notice periods, and use a specialist recruitment partner to reach passive candidates. HyrEzy recruits first India teams on a success fee, with EOR available through partners.

Step 1: Decide how you will employ people

You need a legal employer in India before anyone can join on payroll. There are two common routes, and many companies use one after the other: start with an Employer of Record (EOR) to hire quickly, then move staff to their own entity once the team grows.

Ways to employ staff in India
RouteBest forPoints to consider
Employer of Record (EOR)First 1–10 hires, testing the marketFast to start; monthly fee per employee; the EOR is the legal employer
Wholly owned subsidiary (private limited company)A long-term team and local operationsTakes time to incorporate and register; full control over employment
Branch or liaison officeLimited activities, mainly liaison or representationRestricted activities; needs regulatory approval
Independent contractorsShort, defined projectsMisclassification risk if they work like employees
This is a general overview, not legal or tax advice. Confirm the structure with a chartered accountant or lawyer in India.

Step 2: Choose which roles to hire first

The first hires set the culture and the hiring bar for everyone after them. Common first-team patterns:

  • A country head or Head of India Operations who can hire and run the team locally.
  • An engineering lead or Director of Engineering for a technology or product centre.
  • A finance and compliance lead once the entity is set up.
  • Sales or business development leads when India is a market, not only a delivery centre.
  • An HR or talent partner when hiring plans go beyond 15–20 people.

Step 3: Understand the Indian hiring market

Salaries in India are quoted as annual CTC (cost to company), which can include fixed pay, variable pay, provident fund and other benefits. Always confirm what is fixed and what is variable.

Notice periods are long. Many experienced professionals serve 30–90 days, and senior people often 90 days, so a role filled today may only start two to three months later. Plan start dates around this.

The strongest candidates are usually not applying for jobs. They are reached directly, and they ask about the company, the India mandate and how much autonomy the local team will have.

Step 4: Set up a hiring process candidates trust

International companies lose good candidates to slow or unclear processes. Before you start:

  • A clear job description that explains why India and what the team will own.
  • Interview rounds that work across time zones, ideally completed within two to three weeks.
  • An offer in CTC format, with fixed and variable pay shown separately.
  • Background and reference checks before the joining date.
  • An onboarding plan that connects new hires with the global team from day one.

How HyrEzy helps international companies

HyrEzy has helped product companies hire in India since 2015, including international companies building their first India team. We recruit leadership, engineering, product, data and business roles, share an evaluated shortlist within 5 working days, and work on a success fee with zero retainer and a 90-day replacement guarantee.

Where you do not yet have an Indian entity, we work alongside Employer of Record partners so your hire can join on time, and we coordinate interviews across your time zone.

Frequently asked questions

Can a foreign company hire employees in India without an entity?

Yes. An Employer of Record employs the person in India on your behalf and handles payroll, taxes and statutory benefits. HyrEzy recruits the candidate and works with EOR partners.

How long does it take to hire a senior leader in India?

Finding and closing the candidate usually takes 3–6 weeks, then most senior people serve a 60–90 day notice period. Plan on two to four months from brief to joining.

What should be the first hire for an India team?

Usually a senior local leader, such as a country head, Head of India Operations or engineering director, who can then build the rest of the team.

How much does it cost to use a recruitment agency in India?

Typically a percentage of the hire's annual fixed CTC, paid on joining. HyrEzy charges 8.33% for entry level, 10–12% for mid-management and 16%+ for senior and CXO roles.

Do I need a lawyer or accountant to set up in India?

Yes, for entity setup, tax and employment compliance. A recruitment partner handles hiring, not legal structuring.

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