Home › Industries › SaaS & Software
SaaS startups face a unique compliance overlay — domestic GST 18%, foreign exports under LUT (zero-rated), SOFTEX filing for offshore revenue, FEMA for inward remittance. Most SaaS firms incorporate as Pvt Ltd to issue ESOPs and raise institutional capital. FilingLab handles SaaS-specific setup including OPC-to-Pvt-Ltd conversion when you cross fundraising-readiness threshold.
A CA who has worked with saas & software clients will call within 2 hours.
What\'s unique about SaaS & Software
LUT for foreign clients
Filed annually on GSTN portal. Without it, you charge 18% IGST on US/EU clients, then claim refund after 60-90 days. With LUT: zero IGST, ITC refund directly.
SOFTEX filing
Mandatory for software exports above $10,000. Filed with AD Bank within 30 days of invoice. Tracks foreign exchange repatriation.
ESOP pool design
Pre-funding companies typically reserve 10-15% as ESOP pool. Issued via Section 62(1)(b) special resolution + Schedule X scheme. SAR cliff + 4-year vesting standard.
TDS on foreign payments
AWS, Stripe, Slack, Notion subscriptions to non-resident entities → Section 195 TDS at DTAA rate (often 10%). Form 15CA / 15CB per remittance above ₹5 lakh.
Pvt Ltd from day one if you plan to raise — VCs only invest in Pvt Ltd. OPC if you're bootstrapped solo and may stay so for 2-3 years.
Zero-rated under LUT. File LUT in April every year, invoice foreign clients without IGST, claim ITC refund quarterly via RFD-01.