Want To Test The Indian Market? Employ PEO Service Providers In India

PEO Service Providers in India

PEO service providers in India have been assisting organizations in quadrupling their revenues. But still, hearing the word PEO can extract many strange reactions. A lot needs to learn what the abbreviations stand for and what their benefits can entail. 

But as we said, MNCs and firms are banking upon these services to run their daily operations. The statistics give more clear picture;


This business model is working. But to take advantage of PEO service providers in India, we need to grasp what PEO is, how it works and the hidden benefits and drawbacks of PEO services. In addition to every detail about PEO services, we will give details about the five best PEO service providers in India who are the best in their respective fields. Some have excellent access to a talent network, while others can start your business operations in days. 

This blog will give you a quick knowledge of PEO service providers in India. But before that, there is a quick rundown of the Contents. 

But a question still arises, why is there a need? 


The Need for PEO service providers in India



PEOs are a foreign concept that was introduced in the US. It was introduced out of a shortage of qualified employees for small businesses, causing them to lose their business to more giant corporations. To address this problem, they would use a co-employment service. 

The smart move of implementing PEO services benefitted local businesses greatly. With time it has become popular between employees and its company heads. Due to this, these services have crossed seven seas and are here to stay in India. 

Medium-sized businesses in India are on the rise with an ever-increasing number of HR challenges. It ranges from compliance with labour laws to the administration of employee benefits. The scenario results in many businesses turning to PEO service providers in India to handle every HR function. 

For small businesses looking to streamline their business or run their business in auto mode, this is a cost-effective solution for you. This blog will also highlight India’s top 5 best PEO service providers. We will examine and explore their services and where their expertise lies. Also, how can they help in scaling the business? 

But if you want to know more about PEO service providers in India, then watch this video:


But now let’s explore what we promised earlier: all the details about PEO employment. 


What are PEO service providers in India? 



As per NAPEO National Association of Professional Employer Organizations, PEOs outsource third parties that handle workers’ compensation well. 

PEO Service providers in India are full-service human resource outsourcing co-employment services. In this arrangement, the PEO is liable to take care of every employee’s administrative duties for the company, like payroll and benefits management. It is also responsible for the organization’s compliance and human resource requirements. Also, a co-employer as services entail accounting, taxation, client service, human resource, law experts and risk management on behalf of the client company. 

Some services also undertake strategic decisions in their job description. One of the reasons why no two services are comparable. Some can offer significant benefits and perks. At the same time, others have the best network talent—all the more reason to research and compare suppliers’ capabilities. 

In addition to every strategic decision, they are HR professionals who handle Payroll more easily. Also, they will focus on Payroll, maintain control, and focus on other tasks. They will ensure that your compliance and tax and taxes are in the correct order. They can also manage direct deposit transactions and maintain records.

Since we have given you the know-how on PEO, you now know how PEO services work.


Working Model of PEO service providers in India



PEO’s operation is linked to co-employment, where duties are delegated and split. It involves sharing of employer obligations between the employer itself and the PEO. It implies that if duties are being shared, then risks are also shared. 

The PEOs also inform about various state and federal compliance issues that concern your company as a co-employer. The assigned PEO professional will inform you of everything about all these criteria. They will provide you with every idea on how to fulfil every compliance loophole. 

However, the business owner sometimes needs the necessary steps to ensure compliance. The PEO professional will give you a memo or poster necessary under federal and state regulations governing workers. All you have to do is, display it on the job site for all the governing workers to see. Therefore, helping you in the efficient operation of all employee-related activities inside a company. 

The PEO working model has been the foundation of co-employment and prioritizes job performance. A PEO establishes a co-employment relationship with its clients to make various areas of compliance work, such as workers’ compensation, pay, tax forms, perks, PTO management, and other administrative charges. Indeed, it means that PEO service providers in India are keen on recruiting people to assist with certain activities.


On top of that, PEOs offer assets to carry out essential responsibilities. It includes technology, systems and connections. These are interconnected and influence each other. Companies dealing with PEO providers can help on focusing other exciting parts of the business while handling administrative and personnel needs. 

Under the working model, there is an “employer of record” for tax and regulatory purposes where the client retains day-to-day control over its employees. Therefore co-employment in every term. Here is a general view of how the PEO model can work:

Contractual Agreement

The client company comes in a contract with the PEO service providers in India, like MME, which will outline every HR service provided by us and detail each responsibility of the party. 

Co-Employment Relationship

The PEO company becomes the default employer of record for tax and regulatory purposes, taking on payroll processing, employee benefits administration and HR compliance responsibilities. At the same time, the client retains control of daily operations over its employees. 

Shared Responsibilities

The PEO and the client company are in partnership thanks to the signed contract. The PEO will do all the menial work, like homework on compliance and labour laws. In comparison, client companies will be responsible for setting company policies, managing and reviewing employee performance. 

Cost Savings

Businesses can focus on cost-generating avenues by outsourcing taxing HR operations to the third-party PEO. The in-house HR can now organize team-building exercises or sign employees up for various business conferences. Your business will get HR services at a lower cost, and your in-house HR will optimize employee performance. 

But this is not all. As a client company, you will be getting more benefits. Let’s analyze this one by one.


How can Professional Employer Organization (PEO) service providers in India help businesses? 



Competing with large companies is often difficult as their employees can give better benefits. It is especially true if you operate small businesses. But a PEO service provider in India will allow you to offer more because there will be more benefits.


For example, the perks and benefits can entail health insurance. If you own a small business, you may have tight constraints on health insurance. But with, a working PEO service provider in India can erase the limits or costs of health insurance. 

Additionally, there is more. The benefits and perks a company enjoys when PEO service providers in India: 

Saves Money 

When a business is using PEO services, the business owner you are saving money and other assets. It doesn’t have to hire a different team for hiring employees, taking care of their needs and maintaining the work. The PEO does all of this hence saving money, time and effort.

In addition to that, savings of establishments can cost a bomb at a foreign location. It can be saved by enrolling in a PEO service provider without opening any legal entity. Also, the fastest way to enter a new foreign market and try hands-on new business opportunities. It can also safely mitigate your company’s risks and intellectual property. 

Saves Time

PEO service providers in India will care for employees’ work, administrative work, and documentation. This whole process is only saving time for the company, and the time can be used for other business needs. Thus helping in expanding the business. 

Consequently, it takes a long time to follow every rule related to human resources in the business. The saved hours in transferring the task of acknowledging every rule can be used in the company’s growth. 

Better Employment Process

PEOs manage every human resource management work. Therefore, allowing companies to concentrate on brand and personnel management to enhance the quality of work life. 

Partnering with service providers like MM Enterprise will only reduce the risk and responsibility of hiring employees. It covers duties like correctly reporting, collecting, and depositing taxes to state and federal governments, complying with the EPF (Employee Provident Fund) and ESIC requirements, and managing employee-related claims.

Improved Employee Perks

PEO Service providers in India provide a range of benefits under one umbrella, such as health, dental, and vision insurance; disability and life insurance; workplace perks; help with mental health; retirement plans; educational support; commuter perks; and personal accident insurance. PEOs frequently negotiate these various medical reimbursements. They are entitled to massive discounts as they buy all the benefits in bulk.

Efficient Procedures

The client company can expect efficient administration and HR procedures in auto mode. The client has to review many decisions made by the PEOs while tending to other business needs. With every work streamlined, like salary processing and employee discussions by experts, it can give clients mental peace. 

The cherry on the cake is that PEO service providers in India provide employee performance monitoring software, complete with forms you and your staff must submit on a scheduled time. In other words, the PEO provider offers a performance reporting system that ensures that you and your team are on the same page regarding each employee’s goals and areas for improvement.

Expert on Compliance Issues

Working with a PEO service provider gives you an expert resource for compliance issues. It could be a significant advantage. A professional employer organization can help you to keep updated on local, state and federal compliance regulations. We are also providing you with advice on these matters. 

As a result, you will have compliance regulations in order. The client company will not be liable for any unexpected compliance penalties. A PEO service provider in India will handle all the paperwork and filing. 

Knowing that the PEO handles all the tasks related to employee management and administrative needs, one can focus on goals. But still, there are significant functions of PEO which still need to be addressed. 

Functions Of PEO service provider in India



Paychecks and Tax Preparation

Salary processing is handled by PEOs, who also pay local, state and national hiring taxes in some situations. Many even combine salary and timesheets, reducing data input duplication and allowing for mistakes. 


PEOs have regulatory professionals on staff that can advise on avoiding huge fines. They always hire the best legal experts to help you try the same. Usually, they have experts on board who can solve various HR concerns. 

It can start from tax rate law and reporting requirements, insurance schemes, workers’ insurance, recruiting and HR regulation. They also have a fair knowledge of workers’ compensation, hiring practices, HR rules, insurance program, tax legislation and reporting requirements.

Risks and Security

PEOs provide safety audits and skills training as the client company can help themselves when the audit needs to be done ASAP. Investigations by the Occupational Safety and Health Administration (OSHA) may also require PEO’s assistance as they are liable to know more about this organization than the business head. 

Assistance with Human Resources

A PEO is a company version of Human resource professionals on staff who can assist with HR issues. If the business has an in-house HR representative, PEO and HR can collaborate on a tactical and operational level. 

Management of Talent

It is easy to hire talent. But it is more challenging to retain the talent. With recruitment, staff training and participation, reward systems, and training programs provided by PEO service providers in India. The talent can easily be retained. 

Well, we have harped on advantages and functions. Let’s talk about its disadvantages. 


Disadvantages of PEO service providers in India 



These are the list of disadvantages which can hamper your business interests, which are as follows: 

Loss of Command

There would be problems in the hierarchy when the outer company influences the staff and the working culture. There will be interest in conflict. 

Loss of Inner HR Management

Core HR management suffers a loss of importance when hiring a PEO. It could cause issues in the future after the PEO is no longer associated. 

Loss of Privacy of Paperwork

There is a loss of privacy when another company is at work. When employing a PEO, you must submit workers’ personal details documentation. It could raise questions on security.

Earlier we said there would be a surprise for you. Here it is—some of India’s significant PEO service providers. 


Following are some major PEO service providers in India



  • Horizons
  • Sky Executive
  • Global PEO Services
  • Husys


Company Name – Horizons

Website – Nhglobalpartners.com

Industries – Financial Services

Type- Privately Held

Headquarter – Singapore

Founded – 2018

Formerly known as New Horizons Global Partners is a PEO that is slowly making a mark in the PEO industry. It takes care of your business’s Payroll, employee taxes, and compliance obligations in India. This approach and services will help you quickly set up a business in India without creating a subsidiary firm. Hence saving time and money. 

Horizons will only help in entering the Indian market quickly as it hires employees on its account while handling all bureaucratic and regulatory difficulties.


Company name – MM ENTERPRISES

Type – Privately held

Founded in – 1995

Website – www.mmenterprises.com

Industries – Recruiting, human resources

Headquarter – Delhi

MME has been a preferred partner for PEO services from clients across Asia, America, and Europe. The company has served as an employer on record for multiple organizations looking for a reliable sourcing partner in India.

How does it function? 

The services are customizable and flexible to meet the industry’s needs. The service provider offers end-to-end HR solutions, including hiring and managing employees in India per compliance regulations. The whole service is done seamlessly without any short notice or the additional burden of establishment Costs. 

The service is responsible for statutory, Payroll & other benefits while the client can run daily operations. The services are not limited to resolving queries, managing employees and compliance issues but exceeding client expectations. For example

Recruitment & Hiring

We understand your business needs and will collaborate to find the right fit. Recruit the candidate within the stipulated TAT. 

Onboarding Process

The well-planned Employee Induction program curated by MME enables employees to make a seamless landing in the organization to become efficient and effective employees.

Payroll Management

Error-free and compliant calculations of Employee salaries, Incentives, Bonuses, Tax deductions, and Net pay are all done by this service. While the client can always cross-check with multiple reporting and analysis tools

Benefits Management

Benefits such as Insurance, Health and Accident, etc., are the best available plans for your employees. We ensure the benefits as per your requirements and budgets. As this is an outsourcing partner, you can enjoy better competitive rates and better packages. The benefits ensure that employees can enjoy affordable retirement and health plans. 

Reimbursement Management

The service helps you manage all aspects of Employee expense claims from start to finish, such as Mobile, Travel, Telephone, etc.

Asset Management

There is an asset Management team that will protect all company’s assets, including laptops, Tablets, Data Cards, Mobile Phones, Safety equipment, PPE, Tools Kits, etc. It ensures that employees are always provided with resources at the fastest TAT. 

Full and Final Settlement

We ensure a seamless termination procedure that includes Unpaid salary, Non-Availed Leaves & bonuses, Deductions, if any, Asset handing over, etc.

Sky Executive

Company Name – Sky Executive

Website – Skyexecutive. global

Industries – Human Resources, Recruiting

Type – Privately Held

Headquarters – Pune, India

Founded – 2018

Expansion into India can be risky. But with ample experience, it can be done. It is where Sky Executive comes in. Based out of Pune, it assists businesses in establishing operations in the country. It designs the system in such a way that it transfers divisions, products, or activities to a qualified and experienced workforce in India and reaps the benefits of enormous cost savings.

Sky Executive provides office setup, hiring new talent, general management, payroll processing and corporate taxation. Thus making them an ideal partner when starting new operations and assisting in managing staff in India. 

Global PEO Services

Company Name – Global PEO Services

Website – Globalpeoservices.com

Industries – Human Resources Services

Type – Privately Held

Headquarter – Salt Lake City, UT

Founded – 2017

Global PEO Services is one of India’s top PEO service providers, allowing staff hiring without any legal entity. It takes care of all the human resources, benefits and Payroll while the new hires and headquarters team can seamlessly focus on scaling the profits. The quickest way to create a workforce will be Global PEO Services.



Company name – Husys A people 2.0

Website  – Husys.com

Industries – Human Resources Services

Type  – Privately Held

Headquarter  – Hyderabad, Telangana

Founded  – 2002

This PEO service provider in India specializes in developing and managing HR systems for small and medium enterprises. They have provided HR services to over 3000 organizations via cost-effective and strategizing solutions. With its experienced and dedicated human resource team, it has gained expertise in various domains of HR functions, such as consulting, recruitment, employer of record services, business incubation, outplacement personnel solutions, organizational competency development and talent acquisition.

They have the best experience and authentic advice on HR services to employees following labour laws. Qualified experts can look after documentation and risks. 

As promised, we have given ample knowledge of why PEO service providers in India are a significant asset to the company who wants to test Indian waters. But still, you must have questions. Hence the FAQs.  




What is the Full form of PEO? 

The complete form of any PEO is Professional Employer Organization / Professional Employment Organization.

Why are PEO services critical?

New or foreign enterprises who want to open operations in the Indian market can increase sales and efficiency, emphasize their primary objective, and expand the business.

Who uses the services of a professional employer organization (PEO)?

Several organizations utilize PEO services. Some of them are:

  • Accountancy companies
  • High-tech corporations
  • Local businesses

But it is not only limited to these Industries. Various IT firms and MNCs take the help of PEOs. 

How much can a PEO charge?

PEO service providers in India typically charge a percentage fee on the total Payroll of the employees. The exact percentage can vary depending on the range of services, the size of the business, and the number of employees. PEO costs are estimated to be around 2-12% of earnings. According to various industry analysts, the percentage can be higher for premium services, while mid and small businesses out lower percentages. 

Why do businesses use a PEO Service Provider in India?

Partnering with a PEO service provider in India can access various HR services. Therefore freeing up your calendar and resources to focus on other core operations. Hence a money-back guarantee and robust investment. 

Businesses should look for a company with a proven track record and expertise in delivering high-quality HR solutions. With a broad range of HR services and competitive pricing, you will only benefit from the HR services. 

Can a PEO Service Provider be of help with compliance and legal issues?

Absolutely. A PEO service provider has a ram of experts that can help with compliance and legal issues related to HR management, such as employment laws and regulations. They can also help in strategizing all the decisions related to compliance. Prepare a memo that can be adhered to. Also, help you out with filing paperwork. 



As we have repeatedly proved, PEO service providers in India greatly help and benefit the company’s growth. Especially if a small business needs to hire qualified people while saving time and money to expand, it depends on the client’s needs and their business needs with expansion ambitions. There are various options, and PEOs are the perfect solution to achieve every business goal. 

It can have significant assistance and benefit the company’s growth, mainly if it is small and needs to acquire competent talent for the team. In contrast, they save time and money by following the guideline issued by PEO service providers in India. By choosing the right PEO service provider in India, businesses can do their best skill managing a business.