I am a Freelancer. What compliance do I need in India ?

If you are a freelancer and scratching your head for the compliance required, this can be useful for you.

Freelance in legal terms:

So, as a freelancer you can operate as self (individual) or a proprietor ship firm.
I recommend to go for a sole proprietorship firm and open a current business account with bank. Opening a sole proprietorship entity gives your freelance business a recognition for long term.

What do I need to open a sole proprietorship firm ?

You should have a PAN (income tax purpose) in your self name.
MSME registration certificate
Business registration in state you are operating.
And GST registration in case you are planning to go beyond the eligible limit for GST reg.
Any 2 documents above enable you to open bank current account.
Need above services, contact us.

Do I need to open a sole proprietorship firm for platform like 'Upwork', 'Freelancer' etc ?

No, you do not need to register a proprietorship for these platforms on date of writing this article. All you need is PAN.
On basis of PAN these platform may deduct TDS if required and provide the details of money / fee paid to you through the platform to the tax authorities.


Freelancing for Indian clients and Offshore clients

If are operating in India only and you exceed a particular limit of revenue (changes from time to time) from freelancing you need to register for GST. Below that limit GST registration is not required.

If you are also serving Offshore clients or only serving Offshore clients ( clients outside India), it is advised to get GST registered even below the limit and file for LUT on GST portal. Though export of service does not require GST to be charged on Invoice but still LUT need to be filed on portal.


If you need any services related to your freelancing business or have more questions in mind, do write us at info@bizzguru.in with Subject " Freelancing compliance | Help"