Do’s and Don’ts for hiring remote talent in India

Hiring talent in India can be a strategic move for startups and global companies alike. With a vast talent pool and strong technical education, India offers high-quality expertise. However, hiring remotely also requires understanding of legal, cultural, and compliance obligations. This guide highlights the key do’s and don’ts when hiring talent in India, helping you stay compliant and competitive.
Do's when hiring talent in India

1. Use an Employer of Record (EOR) or local subsidiary for full-time roles
India treats long-term remote roles as full employment. Avoid risk by hiring through a local entity or a global EOR service like Deel, Remote, or Multiplier.

2. Sign Indian-law contracts with strong IP clauses
Protect your intellectual property with enforceable NDAs and IP assignment clauses under Indian law.

3. Comply with Indian Tax and Labor Laws. This includes:

Provident Fund (PF) and Employee State Insurance (ESI)
Tax Deducted at Source (TDS)
Professional tax (if applicable)

4. Provide documented equipment & secure access
Issue laptops with asset tracking, and use secure remote tools such as VPNs, MDMs, and two-factor authentication.

5. Offer competitive local benefits. Indian developers value:
Health insurance
Paid time off
Remote work stipends
Learning budgets

6. Use familiar tech tools
Developers in India are already comfortable with GitHub, Jira, Slack, Zoom, AWS, and GCP. Stick to global tools they know.

7. Use local payroll platforms or global EORs
Platforms like Keka, RazorpayX, or GreytHR streamline compliant payroll in India.

8. Respect work hours and public holidays
Maintain a few hours of overlap with Indian workdays and observe national holidays to support well-being and productivity.

Don'ts when hiring talent in India

1.Don’t label full-time developers as freelancers
Misclassification can result in legal and financial penalties under Indian employment law

2. Don’t use foreign-law contracts alone
Indian courts may dismiss contracts not governed by Indian law, leaving you exposed

3. Don’t ignore data security regulations
Prepare for India’s Digital Personal Data Protection Act by implementing strong encryption and privacy practices now

4. Don’t underpay Indian talent
Talented developers expect globally aligned salaries. Competitive pay improves retention

5. Don’t use non-compliant payment methods
Avoid crypto, PayPal, and direct international wires. Use approved methods to remain RBI-compliant

6. Don’t ignore time zone planning
Ensure at least 3–4 hours of overlapping work time to enable smooth collaboration

7. Don’t treat employees like outsourced contractors
Include them in product decisions, daily stand-ups, and team-building efforts

8. Don’t neglect upskilling and mentorship
Provide learning paths and growth opportunities to retain your top talent

 

Hiring in India isn’t just about accessing talent; it’s about doing it right.

An Employer of Record acts as your trusted partner on the ground, helping you stay compliant while you focus on growing your global team. Whether you’re a startup or a scaling company, using an EOR like us gives you speed, safety, and strategic edge in one of the world’s most dynamic tech markets.

If you wish to know more details, just get in touch with us - info@prglolinks.com

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