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UHi,
I’m exploring how to set up a **Merchant of Record (MoR)** service in India, and I’d appreciate advice from those with experience in compliance, payments, or fintech. Here’s my breakdown of what I’ve researched so far and where I need clarity:
# 1. Legal Setup
* **Business Structure**: Should I register as a Private Ltd. Company or an LLP for MoR services?
* **Registrations**:
* GST registration is mandatory, but do I need additional licenses (e.g., RBI authorization for payment aggregation)?
* Are there specific compliances for cross-border transactions (FEMA, etc.)?# 2. Payment Infrastructure
* **Bank Partnerships**: Which banks offer merchant accounts suited for high-volume transactions?
* **Payment Gateways**: Is it better to partner with existing gateways (Razorpay, PayU) or build in-house solutions?# 3. Regulatory Hurdles
* **RBI Guidelines**: The RBI requires ₹15 crore net worth for payment aggregators. Does this apply to MoR services if I’m partnering with existing gateways?
* **PCI-DSS Compliance**: How rigorous is the audit process for card data security?# 4. Tax Management
* **GST on Services**: How to handle GST for clients (domestic vs. international)?
* **TDS/Withholding Tax**: Are there specific deductions for MoR revenue sharing?# 5. Risk & Liability
* **Chargebacks/Fraud**: What tools or insurance do MoRs typically use to mitigate risks?
* **Contractual Liability**: How to structure client agreements to limit exposure?# 6. Tech Stack
* **Platform Requirements**: What features are critical for invoicing, reporting, and reconciliation?
* **Fraud Detection**: Recommended tools/APIs for Indian markets?# 7. General Advice
* Are there niche communities/forums for Indian MoRs?
* What are common pitfalls to avoid in this space?**Background**: I’m based in India and want to cater to SaaS businesses needing MoR services for domestic and global transactions.
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