Many foreign companies hire across multiple Indian cities to access the best talent regardless of location. This works fine on EOR — the EOR maintains state-specific registrations and handles multi-state PT filings as routine. A few mechanics to understand.
Multi-state compliance the EOR handles
- Single central registrations — PAN, TAN, PF establishment code, ESI code (typically registered in the state where the EOR is incorporated).
- State-specific Professional Tax — registered in every state where employees sit; monthly returns filed per state.
- State-specific Shops Act registration — typically only in the state of the EOR's registered office unless physical branches exist.
- Single 24Q TDS return covering all employees across states.
- Single Form 16 per employee at year-end, regardless of state.
Professional Tax slabs by state — relevant to your engineer's pay
| State | Top slab (₹/month) | Filing frequency |
|---|---|---|
| Karnataka | 200 | Monthly |
| Maharashtra | 300 | Monthly |
| Telangana | 200 | Monthly |
| West Bengal | 200 | Monthly |
| Tamil Nadu | Variable by city | Half-yearly |
| Gujarat | 200 | Monthly |
| Kerala | Variable | Half-yearly |
| Delhi, Haryana, UP, Punjab, Rajasthan | No PT | — |
ESI in multi-state scenarios
ESI applies based on the employee's gross wages — under the ceiling, ESI applies; over, exempt. State doesn't determine eligibility. Most senior engineers are over the ceiling and exempt from ESI. Office support and junior staff may fall in.
Multi-state distributed teams — routine for us
FastLegal runs distributed Indian teams across 5+ states routinely. PT filings in every state, single central PF, consolidated Form 16. Your consultant maintains the state-wise registration map and surfaces it in your quarterly compliance summary.
Operational patterns for distributed Indian teams
- No required physical office — fully remote works. Engineer can WFH from anywhere in India.
- Quarterly off-site recommended — fly the team to one city for in-person time.
- Internet stipend covers home connection — typically ₹2,000-3,500/month.
- Coworking access funded by the company if engineer wants a dedicated space.
- Equipment shipped to engineer's home address by the EOR or by you.
When an engineer relocates within India
Indian engineers move cities — typical reasons include family, marriage, lifestyle. Mid-employment city change is manageable:
- Engineer notifies HR / EOR of new city + effective date.
- EOR registers PT in the new state if not already (no action needed if state has no PT).
- Engineer's address in payroll updated.
- From the next pay cycle, PT is deducted at the new state's slab.
- Health insurance updated for the new city's network (usually no action needed for national plans).
Common foreign-employer questions
- 'Can we restrict hires to one city?' Yes, if you want — but you limit your talent pool to the city's depth. Bengaluru is largest but you're competing with every credible employer there.
- 'Do we need a physical address per state?' No — EOR's registered office covers Shops Act. Employees can WFH from anywhere.
- 'Does the engineer's salary differ by city?' Yes — Bengaluru / Hyderabad / NCR command premiums; tier-2 cities lower. Adjust offers to local market.
Frequently asked questions
Can engineers in different states have different leave policies?+
Yes if you want, but most foreign employers run uniform leave policies across India for simplicity. EORs support both.
What about state-level public holidays (e.g. Kannada Rajyotsava in Karnataka)?+
Engineer-specific. If an engineer in Karnataka observes Karnataka Rajyotsava, they take it off as a regional holiday. EOR's policy can support state-floating holidays.
Does GST registration of the EOR cover all states?+
GST is state-specific. The EOR has GST in its state of operation. Your engineer's location doesn't trigger additional GST registration for the EOR.
Can we add a new state mid-year if we hire an engineer there?+
Yes — EOR registers PT in the new state typically within 10-15 days. No disruption to the engineer's payroll.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.