PEO vs EOR: Choosing the Right Solution for Global Expansion in India
                     PEO vs EOR
Choosing the Right Solution for Your 
Business
Navigating Global Expansion in India
Sept 26, 2025
Agenda
Understanding PEO
Understanding EOR
Key Differences
Choosing the Right Model
Real‑world Impact
Conclusion & Next Steps
Understanding PEO
A Professional Employer Organization (PEO) operates under a 
co‑employment model, acting as the co‑employer of your workforce. Impact of PEO on Growth & 
While you retain control over day‑to‑day operations, the PEO manages Retention
HR functions to ensure efficiency and compliance:
60
Payroll Processing Tax Administration 50
Manage wages & salary calculations Handle tax withholding & filings 40
30
HR Compliance Employee Benefits
20
Ensure adherence to labour laws Provide health & retirement plans
10
Recruitment & 
Workers' Compensation
Onboarding 0
Manage insurance coverage Support hiring & orientation
Without PEO With PEO
[1]  [2]  [3]  
% Improvement
Understanding EOR
An Employer of Record (EOR) becomes the legal employer of your 
workforce on your behalf.
You direct daily work, while the EOR handles employment contracts, 
payroll, benefits and compliance.
Onboarding & Contracts Payroll & Taxes
Issue employment agreements & 
Process pay, withhold & file taxes
manage hires
• Hire without setting up a legal entity
• Quick onboarding in days, not months
Compliance & 
Benefits & Social • Local experts handle taxes & compliance
Offboarding
Administer benefits & social Ensure labour law adherence & • Lower risk & cost when testing new markets
contributions terminations
[4]  [5]  [6]  [7]  
Key Differences
Feature PEO EOR
Legal Entity Required Yes No
Employment Relationship Co‑employment EOR is legal employer
Ideal For Established entities Entering new markets
Control Over Workforce Shared Full operational
Compliance Responsibility Shared EOR manages
[8]  
Choosing PEO vs EOR
When to Choose PEO
• You already have a legal entity in India
• You need assistance with HR, payroll & compliance
• You want streamlined administration & reduced overhead
• You plan long‑term, scalable operations
When to Choose EOR
• You don’t have a legal entity in India
• You need to onboard quickly in new markets
• You’re testing a market or running short‑term projects
• You want to minimise legal & compliance risk
[9]  
Real‑world Impact
EOR vs Entity: Time & Cost & Flexibility
200
• Setup Time: EOR can onboard staff within 14 days, while 
150 setting up a local entity may take 3–12 months.
• Setup Cost: Initial costs for an entity range from $25k–$100k; 
100 an EOR is far more affordable.
• Flexibility: EOR arrangements make scaling up or down easy; 
50 dissolving an entity can be lengthy and costly.
0
EOR Local Entity
[10]  [11]  [12]  
Conclusion & Recommendations
PEO suits established businesses: When you already have a legal entity and require HR, payroll and compliance 
support, a PEO keeps operations lean and compliant.
EOR accelerates market entry: For companies without a local presence, an EOR allows you to hire quickly, minimise 
risk and test new markets.
Strategic pathway: Many businesses start with an EOR to prove the market, then transition to a PEO or their own entity 
once scale is justified.
Choose the best PEO/EOR provider in India: Partnering with a trusted provider ensures compliance, speed and 
scalability in one of the world’s fastest growing markets.
[13]  [14]  [15]  
Thank You