Write down the one job you need done and what it pays, look in your own network first, then make it legal before day one. Give a written offer and an appointment letter, which every employee must now get under the Labour Codes in force since 21 November 2025, plus confidentiality and IP assignment terms so the work belongs to the company. Register under your state's Shops and Establishments Act, deduct TDS from salary and register for professional tax where your state levies it. PF becomes compulsory at 20 employees and ESI at 10 (for those earning up to ₹21,000 a month). Keep allowances under half of pay, since the Codes count anything above 50% as wages for PF and gratuity. Zoho Payroll is free for up to 10 employees; RazorpayX Payroll is ₹3,499 a month plus GST for up to 20.
The Ministry of Labour's 21 November 2025 release bringing the four Labour Codes into force, with the before-and-after table: mandatory appointment letters for all workers, and gratuity for fixed-term employees after one year.
A law firm's checklist, updated May 2026 for the Labour Codes, of what a startup must register for and comply with when it starts employing people: Shops and Establishments registration, appointment letters, PF at 20 or more employees, ESI at 10 or more, the 50% wage rule, and a POSH committee.
ESIC's page on who must register: non-seasonal factories and, by state extension, shops, hotels, restaurants and other establishments employing 10 or more (20 where the Centre extended it), and the wage limit of ₹21,000 a month (₹25,000 for persons with disability).
This breaks down the four things you will run monthly (TDS under Section 192, PF via UAN, ESI for sub-21,000 wages, PT capped at 2,500 a year) and ties each to what a payroll provider actually automates, so you can decide what to hand to RazorpayX Payroll, Zoho, or Keka instead of filing 24Q by hand. It answers the exact 'do I need an HR hire yet' question: no, you need TAN, TRACES, and a payroll tool.
Battle-tested YC advice on landing your critical first engineering hire, from founders who've done it at scale. It reframes hiring as a founder-led sales and persistence problem.
This is a ready-to-fill IP assignment and confidentiality agreement hosted on the government's own Startup India portal, so it is drafted for Indian law and free to use. It gives a non-lawyer the actual assignment and confidentiality language to adapt for a developer and get signed. Treat it as a starting point: it is written employer to employee, so swap the party labels for a contractor engagement and, ideally, have a lawyer glance at the final version.
Indian payroll software that calculates salaries, payslips and statutory deductions. It is free forever for up to 10 employees, which covers most first hires.
Razorpay's payroll for Indian companies, which pays salaries and calculates, pays and files statutory compliance. Prime covers up to 20 employees at ₹3,499 a month plus 18% GST, with ₹150 a month for each additional employee.
