How to Set Up Multiple Legal Entities (Multi-Company or Multi-Entity Setup)

Purpose

This article explains how to set up and manage multiple legal entities within a single HRStop instance.
This feature is designed for organizations operating under a group or umbrella structure, where several registered companies or business entities function under one parent group.
It enables users to manage employees, payroll, and compliance separately for each entity, while still using a single, centralized HRStop system.

What Is a Legal Entity?

A legal entity represents a registered company or business unit that operates independently in terms of compliance, payroll, and statutory reporting.

For example, if your organization is Great Developers Group, you may have two distinct legal entities under it:

HRStop Technologies Pvt. Ltd.
HRStop Cloud Services Pvt. Ltd.

Each of these entities can be configured separately in HRStop to maintain their own compliance data, payroll settings, and employee records — all while being managed within the same HRStop account.

When You May Need This

When your organization operates multiple registered companies or subsidiaries under one group.
When you need separate payroll, tax, and compliance configurations for each entity.
When you want to keep employee records distinct for each legal entity.
When you want to control admin access and reporting independently for each entity.

Step-by-Step: How to Enable and Configure Multi-Entity Setup

Step 1: Enable Entity Setup

Navigate to Control Panel → Settings → Modules.
Enable the option “Enable Multi Company/Entity Setup.”
Scroll down and click Update to save the settings.

Step 2: Add or Manage Entities

Once the entity setup is enabled:

Go to Control Panel → Settings → Modules.
Scroll to “Enable Multi Company/Entity Setup.”
Click the hyperlink “Setup Multiple Company.”
Fill in the details for each entity (e.g., name, registration details, contact, address, etc.).
Click Add Entity to save.

Notes:

You can mark one entity as the Default Entity, so employees without a specific mapping are automatically linked to it.
When creating multiple entities, ensure the parent company (for example, Great Developers Group) is also added separately as an individual entity.

Step 3: Manage and Edit Entities

Navigate to Control Panel → Settings → Modules → Enable Multi Company/Entity Setup.
Click Setup Multiple Company.
From the entity list, click the Edit icon next to the entity name.
Make necessary changes and click Update Details to save.

Mapping Employees to a Legal Entity

Once multiple entities are added, employees need to be mapped to their respective legal entity.
This ensures accurate payroll, compliance, and reporting data.

We recommend referring to a separate guide on how to perform Employee-to-Entity Mapping for detailed steps. (Link to be added later.)

What You Can Do Once Entities Are Added

After setting up multiple entities, HRStop enables entity-based configurations across most system modules.
This ensures each registered company operates independently while maintaining a unified system.

Here’s what you can do once entities are configured:

Payroll & Compliance: Run payroll, generate payslips, and file statutory reports (PF, ESI, PT, etc.) separately for each entity.
Company Policies: Define unique company policies (HR, IT, or conduct) for each legal entity.
Leave Policies: Create and apply distinct leave structures or entitlements for each entity.
Attendance Rules: Configure attendance capture modes (web, mobile, biometric) separately per entity.
Holiday Calendars: Define region- or entity-specific holiday calendars.
Performance & Learning: Conduct trainings, appraisals, and reviews aligned with each entity’s goals.
Asset & Expense Management: Assign assets or manage reimbursements based on the entity employees belong to.

This structure makes HRStop’s Multi-Entity Setup essential for groups managing different registered companies with separate HR or operational policies.

Managing Data Privacy Between Entities

Organizations using multiple legal entities may wish to keep employee data secluded across entities — ensuring that employees of one entity cannot view details of those in another.

HRStop provides a dedicated data privacy setting that allows you to:

Restrict employee visibility across entities.
Hide employees of one entity from the Employee Directory of another.
Maintain complete confidentiality in group structures where entities operate independently.

To learn how to enable this configuration, refer to How to Restrict Employee Visibility Across Entities in HRStop

Example

If your organization is Great Developers Group, you can add:

HRStop Technologies Pvt. Ltd. as one entity for software development operations.
HRStop Cloud Services Pvt. Ltd. as another entity for SaaS and outsourcing operations.

Each entity can have its own payroll cycle, compliance setup, leave policies, and employee directory visibility settings — while group-level HR or Admins maintain overall control.

Pro Tips

Always add your parent company as a separate entity for complete data tracking.
Maintain clear entity names for easy filtering and reporting.
Review entity setup periodically, especially when new subsidiaries or branches are added.
The Multi-Entity Setup feature is available only under HRStop Enterprise Subscription.