Home/Insights/India team build 4 min read · Updated September 2026
INDIA TEAM BUILD · AUSTRALIA

Can an Australian company hire employees in India? Yes. Here is exactly how it works in 2026.

Yes. An Australia company can legally hire employees in India through two paths: an employer of record (EOR), which employs the person on your behalf without you needing an Indian entity, or by setting up your own Indian subsidiary. An EOR is the fastest path, operational in days. A GCC or subsidiary takes four to six months to set up but gives full control. You cannot put an Indian worker on your Australian payroll directly; Indian employment law requires a local employer.

PM
Pratik Mokashi
COO, Talhive · 40+ India mandates for US and EU clients
Key takeawaysThe whole piece in five lines
01Australian companies cannot put Indian workers on an Australian payroll; a local employer is required.
02An employer of record employs people on your behalf, so no Indian entity is needed to start.
03The EOR handles contracts, payroll, statutory deductions, benefits, tax filings and termination compliance.
04EOR fees are cost-effective at small scale; past roughly 25 to 30 people, an entity usually makes more sense.
05You still manage the work, and a local leader should be hired before the team.
Discuss a mandate →

Yes, through an EOR or your own Indian entity.

The short answer is yes, and an increasing number of Australia companies already do it. The detail that matters is the model you choose, because it drives your compliance exposure, your cost per head, and how fast you can move.

If you have ten minutes before a hiring review, read only this.

You plan fewer than 25 hires
Use an EOR
Fastest route, no entity required.
You plan 30 or more hires
Start entity registration early
EOR fees stop making sense at that scale.
You are about to hire a team
Hire the India lead first
The leader shapes every hire after.

You cannot put an Indian worker on your Australian payroll directly. Indian employment law requires a local employer, either an EOR or your own entity. Classifying a full-time worker as an independent contractor to avoid this carries real compliance risk and is not recommended.

EOR versus your own entity

An EOR is operational in days and needs no Indian entity. A GCC (your own captive subsidiary) takes four to six months to set up but gives full control and better economics at scale. The GCC vs EOR comparison covers the model decision in more detail.

Australian companies establishing Indian GCCs often choose Bengaluru or Hyderabad. Australian tech companies are among the most active APAC GCC builders in India.

What the EOR handles.

  • Employment contracts compliant with Indian labour law
  • Payroll: salary, statutory deductions (PF, ESI, TDS), and disbursement in INR
  • Benefits administration: health insurance, leave policy, gratuity
  • Tax compliance: TDS filing, PF and ESI registration and remittance
  • Termination compliance: notice periods, severance, full and final settlement

The EOR charges a per-employee monthly fee on top of salary. At small scale this is cost-effective; past 25 to 30 people the per-head cost makes a GCC more efficient.

What you handle.

You manage the work: what the person builds, who they report to, and how they collaborate with your team. The EOR is the legal employer; you are the functional manager. This is no different from how most remote teams already operate.

First steps.

01
Decide how many people you plan to hire in the first 12 months
02
If under 25
select an EOR and brief them on the roles
03
If 30 or more
begin entity registration in parallel and use an EOR to bridge
04
Benchmark compensation to Indian market actuals, not Australian rates
05
Hire a local leader before the team

The India team build practice handles all of this end to end, from model selection through sourcing. For region-specific guidance, the Australian companies hiring in India page covers the process in depth.

An Australia company can hire in India legally, cost-effectively, and quickly. The EOR path gets you a first hire in weeks; the GCC path gives you full control at scale. The model choice follows your headcount plan, not the other way around.

Where a specialist partner changes the outcome.

The decisions that make or break an India team are made in the first ninety days. A partner who has built teams before prevents each mistake from being discovered the expensive way.

Real mandates, real numbers.

CASE STUDYSeries C climate fintech, Pune GCCINDIA TEAM BUILD

A first India engineering centre with no entity and no local employer brand. Pune was the city recommendation, and leadership was hired before any pod.

ENGINEERS
0 to 28
TIMELINE
14 months
18-MONTH RETENTION
93%
CASE STUDYNBA, India technology teamINDIA TEAM BUILD

A first technology team in Mumbai with no prior operating footprint and sourcing restrictions that ruled out several obvious talent pools.

OFFER ACCEPTANCE
100%
ATTRITION AT 12 MONTHS
Zero
FIRST TWO ROLES
8 weeks

Planning your India team?

If you are hiring your first India employees, choosing a city or moving from an EOR to your own entity, we can map the right sequence for your stage before any commercial conversation.

A senior team member responds within one business day. No pitch deck, no obligation.

Discuss your hiring plan →

Frequently asked questions.

Yes. An EOR acts as the legal employer in India. No Indian entity is required.
Yes. The EOR employs the individual under Indian labour law and invoices your Australian entity in AUD or USD.
The Australian Privacy Act governs personal information handling. Confirm your EOR has appropriate data processing terms for employee data transferred to Australia.
Through an EOR: two to four weeks. The India-Australia time zone difference is 3.5 to 5.5 hours, allowing solid daily overlap.