Why this guide exists
On September 19–20, 2025, the United States introduced a new 100,000 USD fee tied to H-1B entries and petitions. Major outlets and official notices reported the change and its immediate effect on employers. Many leaders now need a lawful way to keep teams together without paying that fee or risking delivery.
Elatre launched a dedicated Employer of Record pathway in India to give U.S. companies a fast, compliant path to retain current Indian employees or hire in India with no disruption. We publicly set a 72-hour onboarding target for straightforward cases and we published scope, process, and options like a managed office in Chennai.
Based on our checks of search engines and internet archives on September 20, 2025, we believe we were the first to publicly announce an end-to-end India EOR pathway created in direct response to the new 100,000 USD H-1B fee. We document that claim in our dated press release and live service page.
Quick refresher: what an EOR does
An Employer of Record becomes the legal employer for workers in the target country while you direct the work. The EOR issues compliant contracts, runs payroll, withholds and remits taxes and social contributions, and administers statutory benefits. It lets you operate immediately without opening a local entity.
When an India EOR is the right move
- You need a lawful alternative to the 100,000 USD H-1B fee to keep work going.
- You want speed measured in days, not months, required for entity setup.
- You want predictable, transparent costs tied to salary, statutory contributions, and an EOR fee.
Why Elatre
Speed
We target 72 hours for onboarding once documents are verified. In a policy shock, time is the risk driver.
Compliance coverage in India
We handle local employment contracts, payroll, and filings, aligned to India’s statutory framework. Where applicable, that includes EPF registration and monthly filings with the Employees’ Provident Fund Organisation, and ESI registration and filings with the Employees’ State Insurance Corporation for covered establishments and wage bands.
Security and privacy posture
We align our processing of employee personal data with India’s Digital Personal Data Protection Act, 2023 and its rules as they come into force.
Transparent scope and options
Our pages outline scope, pricing anchor, and workspace choices. You can operate remote or place staff in our managed office in Chennai for secure desks and enterprise connectivity.
How our 72-hour onboarding works
- Strategy call: We assess roles, locations, and compliance needs, then confirm the plan in writing.
- Contracts and verification: We issue locally compliant employment contracts and collect statutory documents.
- Payroll and benefits setup: We enroll employees in payroll and applicable statutory programs, and align cut-offs.
- Go live: Work continues without disruption under Elatre as the employer of record in India.
India compliance checklist we operate against
- EPFO coverage: Establishments typically register upon crossing the 20-employee threshold, with voluntary coverage available below that threshold. Contributions follow EPF norms and published rates.
- ESIC coverage Coverage applies to eligible establishments and wage bands, with employer registration and monthly online contribution filings. Current ESIC materials note a 21,000 INR wage ceiling for coverage and describe monthly contribution processes.
- Shops and Establishments State registration and record-keeping apply for commercial establishments. India’s Model Shops and Establishments Bill offers a reference that several states used when updating their laws.
- Gratuity The Payment of Gratuity Act applies to establishments employing 10 or more persons and sets central rules for entitlement and administration.
- Data protection We align processing with the Digital Personal Data Protection Act, 2023 and subsequent rules issued by MeitY.
- Permanent establishment awareness EOR reduces the need for your own entity but does not automatically eliminate PE risk. We brief clients on activity boundaries using OECD concepts and local tax advice.
Comparing options for U.S. employers in 2025
Pay the H-1B fee
Budget for 100,000 USD per worker plus the usual legal and process costs, then plan for travel and timing risks. Multiple outlets report the fee and timeline.
Open your own Indian entity
Full control, slower time to value. You must register, hire, and run payroll and compliance internally.
Use Elatre as your EOR
Same team, same work, local employment in India. Predictable costs and fast execution with one accountable operator.
What we will provide in due diligence
- India entity information, Shops and Establishments registration details, and proof of EPFO and ESIC registrations, where applicable.
- Sample employment contracts, onboarding workflow, payroll calendar, and SLAs.
- Security and privacy control summaries aligned to the DPDP Act.
- A written note on PE boundaries with OECD references for your tax counsel.
Getting started
Book a strategy call. We will stabilize critical roles, issue compliant contracts, and start payroll so work continues without interruption. If you require secure desks and devices, we will place staff in our managed office in Chennai.
