Incorporation, GST, LUT, startup

Category: Industry Packages. From ₹12,999. Typical timeline: 14–21 days.

Overview

The IT / SaaS Package covers incorporation, GST registration with LUT filing, and export-of-services classification — the specific combination that software and SaaS businesses serving international clients need to invoice correctly from day one without triggering an unnecessary GST refund cycle.

Who needs it

• New SaaS/software founders incorporating for the first time
• Existing service businesses pivoting to serve international clients
• Teams currently charging GST on export invoices unnecessarily because LUT hasn’t been filed
• Founders planning to raise investment, which typically requires a Private Limited structure

Eligibility

• A software/SaaS business incorporating (typically as a Private Limited Company) for investor and ESOP flexibility
• Revenue from international clients that may qualify as "export of services" under GST
• A functioning foreign-currency-receiving bank account for client payments
• Optional eligibility for STPI/SEZ benefits, depending on your export focus

Documents required

• PAN and identity/address proof of all founders and directors
• Registered office proof
• Sample client contracts (for export-of-services classification review)
• Foreign-currency bank account details, once opened
• Class 3 DSC for every proposed director

Process

1. Incorporate as a Private Limited Company — Sets up the cap table and ESOP structure investors typically expect.
2. Register for GST and file your LUT — File the Letter of Undertaking annually to invoice foreign clients without charging GST.
3. Classify revenue correctly — Confirm each client contract meets the conditions for "export of services" treatment.
4. Track FIRC/FEMA compliance — Maintain Foreign Inward Remittance Certificates for each payment received from abroad.

Government fees

• Incorporation (SPICe+), capital up to ₹15,00,000: Nil (fee exemption currently in force)
• GST registration + LUT filing: Nil — no government fee for either
• DSC (per director): ₹1,499

Professional fee

₹12,999 professional fee for the full bundle (incorporation + GST registration + LUT filing + export classification review), in addition to DSC charges shown above.

Timeline

14–21 working days — incorporation typically clears in 7–10 days, with GST registration and LUT filing completed immediately after.

Deliverables

• Certificate of Incorporation, company PAN and TAN
• GSTIN and GST registration certificate
• Filed Letter of Undertaking (LUT) for the financial year
• An export-of-services classification memo for your client contracts

Frequently asked questions

What is LUT and why do I need it?

A Letter of Undertaking lets you invoice export clients without charging GST upfront, avoiding a slower refund-claim process — without an LUT, you’d need to charge GST and then claim it back.

Does every international SaaS contract automatically qualify as an export of services?

No — specific conditions under GST law must be met (like payment in convertible foreign exchange and the place of supply being outside India), which is why we review your contracts before applying LUT treatment.

What is an FIRC and why does it matter?

A Foreign Inward Remittance Certificate documents that a payment came from abroad — banks or authorised dealers issue it, and you should retain one for every international payment as evidence of your export classification.

Common mistakes

• Charging GST on export invoices because LUT wasn’t filed before the first international invoice
• Assuming every international contract automatically qualifies for export-of-services treatment without checking the conditions
• Not renewing the LUT at the start of each financial year, causing a gap in export-invoicing treatment
• Losing track of FIRCs, making it harder to substantiate export classification during a GST assessment

Penalties for non-compliance

• Missed LUT renewal: export invoices must then charge GST until a fresh LUT is filed
• Late GSTR-3B/GSTR-1: late fee per return plus interest on any tax dues
• Late AOC-4/MGT-7: ₹100 per day of delay, with no upper cap

Legal references

• CGST Act, 2017 — Section 16 (zero-rated supply) and the LUT provisions under Rule 96A
• Foreign Exchange Management Act, 1999 (FEMA) — provisions on export of services and FIRC
• Companies Act, 2013 — Sections 3, 4, 7 (incorporation)