EOR vs your own entity.
Setting up your own India entity costs $50,000–$100,000 and takes 12–18 months. An Employer of Record starts in days. This calculator shows which is cheaper for your team size and time horizon — and where the breakeven sits.
Directional model from published figures: per-employee all-in cost ($16,900/yr here), $50,000–$100,000 entity setup, and the 10–15% management share an own entity avoids paying an EOR. Excludes ongoing in-house compliance/payroll/HR overhead — so it is conservative in the entity's favour. Not a quote.
How this comparison works
The EOR path charges the full per-employee all-in cost with zero setup and immediate start. The own-entity path adds a one-time $50,000–$100,000 setup cost and a 12–18 month delay, but avoids the 10–15% management margin an EOR charges. Own entity only wins once that per-employee saving, across your team size and years, exceeds the fixed setup cost. The model excludes ongoing in-house compliance, payroll, and HR overhead, so real entity costs are typically higher than shown. Cost figures on this page describe structural components and directional guidance, not fixed quotes. Actual cost depends on seniority, location, specific skills, engagement model, and current market conditions. Speak with Remvix for a quote calibrated to your specific requirements.
Breakeven team size by time horizon.
Approximate team size at which an own entity's direct cost undercuts an EOR, for a mid-level Software Developer. Below the breakeven, the EOR is cheaper; above it, the entity starts to pay back its setup cost (excluding delay and ongoing overhead).
| Time horizon | Breakeven team size (approx.) |
|---|---|
| 1 year | ~24 developers |
| 2 years | ~12 developers |
| 3 years | ~8 developers |
| 5 years | ~5 developers |
EOR vs entity in India — the real trade-offs.
Is it cheaper to use an EOR or set up my own entity in India?
For most companies, an EOR is cheaper until you reach a meaningful team size sustained over multiple years. Setting up your own Indian entity costs $50,000–$100,000 and takes 12–18 months before your first hire — a large fixed cost and delay. An EOR has zero setup and starts immediately, charging a management margin per employee. Own entities only beat an EOR once the per-employee saving on that margin, multiplied by team size and years, exceeds the setup cost. Use the calculator above to find your breakeven.
How long does it take to set up an entity in India?
Typically 12–18 months before you can make your first compliant hire, versus days with an Employer of Record. That delay is often the deciding factor independent of cost — most companies can't wait a year-plus to start hiring.
What does an Indian entity cost to set up?
Around $50,000–$100,000 in setup and compliance infrastructure, plus ongoing in-house payroll, compliance, and HR overhead to run it. This calculator's model excludes that ongoing overhead, so it is conservative in the entity's favour — real-world entity costs are typically higher than shown.
When does setting up my own entity actually make sense?
When you're committed to a large India team (typically well into double digits) for several years, and value full direct control and market integration over speed. Below that scale, the fixed setup cost and 12–18 month delay rarely pay off versus an EOR.
How is this calculated?
Cost figures on this page describe structural components and directional guidance, not fixed quotes. Actual cost depends on seniority, location, specific skills, engagement model, and current market conditions. Speak with Remvix for a quote calibrated to your specific requirements.
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