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Private Limited Company Public Limited Company Limited Liability Partnership Section 8 Company One Person Company Nidhi Company

Non-Resident

Liaison Office Branch Office Project Office Subsidiary Company Company Registration in India By Foreigners Global Capability Centre (GCC) in India

Registrations

GST Registration Import Export Code Registration In India Trademark Registration Start-up India Registration MSME Registration FCRA Registration

Regular Compliance

All Compliance Services Secretarial and FEMA Services Goods and Service Tax Direct Tax Services Accounting Services in India Payroll Services Virtual CFO Services

Compliance

ITR Filling Services Increase in Authorized Share Capital Change in Name of Company Strike off a company Appointment of Director Change of Objects

Advisory

ESOP Advisory in India Business Valuation Experts Market Study Legal and Tax Structuring Internal Audit Advisory Due Diligence FEMA Consultant and Advisor Business Deck/Information Memorandum Technical Accounting Advisory

Shareholders Agreement (SHA) Share Subscription Agreement (SSA) Share Purchase Agreement (SPA) Joint Venture Agreements Franchise Agreement Founder Agreement

Valuation

Business Valuation Valuation under Insolvency and Bankruptcy Code (IBC) Portfolio Valuation Valuation of Brands, Intangible Assets & Intellectual Property Fairness Opinion Services Financial Modelling Services | CompaniesNext Merger Valuation & Swap Ratio Valuation of Financial Securities, Instruments & Derivatives Valuation of Infrastructure Assets & Specialized Assets Acquisition Valuation Services Purchase Price Allocation (PPA) Valuation ESOP Valuation Services Startup Valuation Services Impairment Study for Intangible Assets and Goodwill Quick Value DCF Valuation ESOP Valuation

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How do we hire Indian employees? What are the key labour law obligations?

Question

How do we hire Indian employees? What are the key labour law obligations?

Expert Answer

Answered 09 Oct 2026

2 views

Hiring an Indian employee is easy. The key labor law requirements are:

Provident Fund (PF): Mandatory for 20+ employees. Employer contributes 12% of basic salary, employee contributes 12%.
ESI: Mandatory for 10+ employees who earn less than Rs. 21,000/month. Employer contributes 3.25%, employee contributes 0.75%.
Gratuity: Payable after 5 years of service. 15 days salary for each year of service.
Leave: 12-18 days earned leave per year (different states have different norms).
Shops and Establishment Act: Register in the state in which your office is located.

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