Umbrella Companies for Global Business Expansion

What is an Umbrella Company?
An umbrella company is an organization that is contracted – usually abroad – so that a business can use its workforce in a foreign country. They are a big part of a global business expansion plan. For a company to hire employees locally in the target country, say India, they would have to undergo proper setup and compliance in that country.

Often, companies don’t want to set up such a full-fledged presence in another market. Rather, they want to acquire a workforce (typically on a temporary basis) from a foreign country. This helps the company grow its business without jumping through the hoops of an entity setup.

This is where an umbrella company Phases into the picture. Suppose a company in the USA or UK wants to hire from India and establish their presence here. An umbrella company helps this business hire resources locally in India. An umbrella company can be client companies like government agencies, construction contractors etc., or recruitment agencies that seek and onboard workforces in India. Or, they can be a specialist human resource organization that provides HR support.