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Payroll & HR Compliance for Foreign-Owned Companies in India

Practice — Payroll & HR

Payroll & HR compliance for foreign-owned companies in India.

End-to-end payroll processing, statutory compliance, benefits administration, and exit management — built for US, UK, European and Singapore companies with teams in India.

Quick answer

Indian payroll is a statutory compliance system, not just a salary run. Every month it touches PF, ESIC, TDS, Professional Tax, and gratuity — on top of computing pay itself. KRPR runs the entire cycle for you: setup, monthly processing, statutory filings, and exit management, so nothing falls through the gaps between your HQ and your India team.

Why this is different

Indian payroll isn't a spreadsheet problem. It's a compliance system.

Every month, payroll in India touches taxation, statutory registers, insurance, and employee compliance simultaneously. Most foreign founders underestimate the number of moving parts until something is missed. Here's how the pieces map onto systems you already know.

What you know it as India equivalent Why it matters
Payroll tax withholding TDS (Tax Deducted at Source) Deducted monthly, filed quarterly via Form 24Q
Social security / pension PF (Provident Fund) Mandatory employer + employee contribution, filed monthly
National health insurance ESIC Applies to employees below a salary threshold
State/local payroll levy Professional Tax (PT) State-specific, varies by jurisdiction
Severance / long-service payout Gratuity Statutory obligation after 5 years of service
Payslip / pay stub Payslip (digital, via payroll platform) Must reflect all statutory deductions individually
Full scope

Everything from setup to exit, handled in-house.

No separate vendors for payroll software, statutory filings, and HR policy. One team, one point of accountability.

A

Payroll setup & system implementation

  • Software selection — Zoho, Keka, GreytHR, Razorpay Payroll, or Tally
  • Salary structuring and tax-efficient CTC design
  • PF, ESIC, PT, and LWF configuration
  • Leave, attendance, and reimbursement policy setup
  • Approval workflows and employee data import
B

Employee onboarding

  • New joiner documentation — ID, address, bank proof
  • CTC structure and offer alignment
  • Declaration and investment proof collection
  • Benefits enrolment and PF/ESIC registration
  • Coordinated with your existing HR or leadership
C

Monthly payroll processing

  • Salary computation and loss-of-pay calculations
  • Attendance, leave, and reimbursement integration
  • Variable pay and investment proof handling
  • Bank transfer file, payroll register, digital payslips
D

Statutory compliance

  • TDS deduction, challans, and Form 24Q filing
  • PF, ESIC, and PT monthly filings with ECR generation
  • Statutory registers maintained continuously
  • Monthly compliance report for your leadership
E

Benefits administration

  • Group mediclaim and term life insurance options
  • Accidental coverage and gratuity setup
  • Retirement benefits and HR policy implementation
  • Single dashboard visibility for your leadership
F

Full & final settlement

  • Notice pay and leave encashment calculations
  • Recovery adjustments and final payslip
  • Experience letter and exit documentation
  • Clean compliance close for every departing employee
Our monthly process

A predictable six-step cycle — every month, without surprises.

This is the same cycle whether you have 3 employees or 300. You always know what stage payroll is at.

01

Payroll setup

Salary structures, software configuration, compliance codes, and benefits activation — done once, refined as your team grows.

02

Monthly inputs

Your team shares attendance, reimbursements, variable pay, new joiners, and exits for the month.

03

Payroll processing & review

We prepare draft payroll, TDS sheets, and PF/ESIC/PT values, then walk through it with your founder or leadership before finalising.

04

Finalisation & disbursement

Bank transfer file, digital payslips, and the payroll register are generated and distributed.

05

Statutory filings

PF, ESIC, TDS, PT, and LWF are uploaded before their statutory deadlines — every month, without exception.

06

Monthly HR compliance report

You receive a payroll summary, TDS payable, PF/ESIC status, leave reports, and statutory compliance proof — full visibility for leadership overseas.

What's actually in Indian payroll

Four statutory pillars run in parallel, every month.

Unlike a single withholding-tax system, Indian payroll requires simultaneous compliance across social security, health insurance, state tax, and central tax — each with its own filing calendar and portal.

We manage all four in-house — no handoffs between a bookkeeper, a tax filer, and an HR vendor.

TDS
  • Monthly deduction on salary
  • Challan payment
  • Form 24Q quarterly return
  • Form 16 / 16A issuance
PF
  • Employer + employee contribution
  • ECR generation
  • Monthly challan payment
  • UAN maintenance
ESIC
  • Applies below salary threshold
  • Monthly contribution filing
  • Health insurance coverage
PT & LWF
  • State-specific professional tax
  • Labour welfare fund (where applicable)
  • Statutory register maintenance
Systems we work in

Your platform, or ours — either works.

Zoho Payroll

Most common for foreign-owned SaaS and tech subsidiaries.

Keka

Strong HR + payroll combination for growing teams.

GreytHR

Established platform for statutory-heavy environments.

Razorpay Payroll

Fast setup, good for lean early-stage teams.

Who this is for

Built for global teams, not local businesses.

This service is designed for foreign-owned Indian entities that hire employees in India, want predictable monthly cycles, and expect audit-ready records — with coordination across time zones for overseas leadership.

Frequently asked questions

Common questions about India payroll.

Do employees get digital payslips?

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Yes — every payslip is generated and delivered through our online payroll platform, with all statutory deductions itemised individually.

Do you support onboarding and exit management?

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Yes. We assist with employment contract drafting on the way in, and handle full and final settlement, leave encashment, and exit documentation on the way out.

Do you handle reimbursements?

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Yes. Employees submit claims online, and we approve and process them within the same monthly pay cycle.

Do you assist with health and medical insurance for employees?

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Yes. We present 3–4 group mediclaim options and you select what fits your team and budget.

Can you coordinate with our HQ on US or UK time zones?

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Yes. Monthly review calls and payroll sign-off are scheduled to work with overseas leadership's hours, not just IST business hours.

Ready to set up compliant payroll in India?

Schedule a no-obligation discovery call with a senior partner. We'll walk through your team size, structure, and a clear payroll setup plan.

Schedule a consultation Write to rohit@krprassociates.com
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