Engage contractors in India. Stay compliant.
Engage contractors
in India.
Stay compliant.
Versatile is your Contractor of Record in India. TDS deduction, GST compliance, IP protection, and misclassification shield - managed by a team that lives inside India's regulatory system. USD and GBP invoicing. No entity required.
India-native contractor management.
Not a global afterthought.
Most global platforms treat India contractors as an afterthought. Versatile was built by people who understand India's regulatory ecosystem from the inside.
India-Native Compliance
TDS deduction on contractor payments, GST input credit management, direct TRACES filing. Every rupee accounted for under Indian law.
USD and GBP Invoicing
Fixed currency invoicing eliminates FX exposure. You pay Versatile in your base currency. Contractors get paid in INR on time.
Misclassification Shield
Protect against reclassification risk. Misclassification triggers back wages, PF at 12%, ESI at 3.25%, gratuity liability. Versatile audits and mitigates.
IP Protection
Assignment clauses under Indian Contract Act. Work product, code, and designs assigned to you from creation. Enforceable across all 28 states.
48-Hour Onboarding
KYC, PAN validation, GST status check, bank setup, agreement execution. Contractor is ready to work in 2 days.
Multi-State Coverage
All 28 states. Professional tax variations handled automatically. Karnataka, Maharashtra, Tamil Nadu, Telangana - all compliant.
Trusted by teams building in India
Direct contractor engagement
vs. Contractor of Record
How it works
Tell us the role, compensation, and start date. We draft a compliant contractor agreement under Indian law with IP assignment, confidentiality, and scope clauses. Everything is documented and enforceable.
KYC verification, PAN and GST validation, bank account setup, agreement execution. Your contractor is ready to work in 2 days. No delays, no surprises.
Monthly TDS deduction and filing with TRACES. GST reconciliation. Timely INR payments to contractors. You receive one consolidated invoice in USD or GBP. Everything handled on your behalf.
Everything you need to
engage contractors in India
Pay all contractors with one transfer
Fund Versatile once in USD or GBP. We handle individual INR payouts, TDS deduction, and invoice reconciliation for every contractor. Your finance team sees one line item instead of dozens.
The compliance burden
you don't have to carry
TDS on Contractors
Section 194C: 1% / 2% on payments. Section 194J: 10% on professional fees. Monthly filing with TRACES. Form 26AS reconciliation.
GST Compliance
Contractor GST registration verification. Input tax credit management. GSTR-1 and GSTR-3B reconciliation. Reverse charge handling.
Misclassification Risk
India courts apply substance-over-form test. Wrong classification triggers back wages, PF at 12%, ESI at 3.25%, gratuity. Versatile audits every engagement.
IP and Work Product
Assignment clauses under Indian Contract Act. Copyright Act 1957 work-for-hire provisions. NDA enforcement mechanisms. Trade secret protection.
Professional Tax
Varies by state - Karnataka, Maharashtra, Tamil Nadu, Telangana all different. Versatile handles multi-state registration and filing.
Permanent Establishment
Direct contractor relationships can trigger PE risk under India-US / India-UK tax treaty. Contractor of Record structure mitigates this exposure.
Compare your options for
engaging contractors in India
| Feature | Versatile CoR | Direct Engagement | Freelance Platform |
|---|---|---|---|
| Setup time | 48 hours | 2-4 weeks | 1-2 weeks |
| TDS compliance | Fully managed | Your responsibility | Partial / varies |
| GST management | End-to-end | Your legal team | Not included |
| IP protection | Built into contracts | Requires India legal counsel | Basic / template |
| Misclassification shield | Included | No protection | No protection |
| India entity required | No | Yes (or PE risk) | No (but limited compliance) |
| Invoicing currency | USD, GBP, or INR | INR only | Platform currency |
| Contractor payments | Same-day INR | You manage | Platform manages |
| FX rates | Transparent, fixed | Bank spreads (3-5%) | Platform markup (varies) |
| Payment delays | On time, every cycle | Frequent (wire processing) | Varies by platform |
| Legal risk | Versatile assumes risk | You're liable | You're liable |
| Ongoing compliance | Fully managed | Fully your burden | Minimal |
| Cost | % of compensation | Internal team costs + legal | 10-20% platform fee |
CASE STUDY
US SaaS Company | 8 Contractors in India
A growing SaaS company was managing 8 contractors across Bangalore, Delhi, and Pune. Each month meant 8 separate INR transactions, 8 individual TDS filings, 8 compliance checks. The legal team was burning cycles on contractor agreement updates.
With Versatile: Single consolidated invoice in USD each month. Zero TDS filing burden. IP secured on all deliverables. Contractors paid on time. Total time saved: 40+ hours per month. Compliance risk: eliminated.
Built for global teams.
Start small. Scale safely.
Startups
Testing talent in India. Need compliant contractor setup without legal overhead.
Product Companies
Scaling engineering and design teams with India contractors. IP protection essential.
Agencies
Building flexible project teams. Rotating contractor engagements with clean compliance.
Global Companies
Expanding distributed teams across India. Multi-state compliance and consolidated invoicing.
Simple, predictable pricing
% of contractor compensation
Full contractor management in India
No setup fees. No hidden charges.
Ready to engage contractors in India
without the compliance headaches?
Schedule a call with our India team. We will walk you through how Versatile's Contractor of Record works for your specific use case.
Frequently asked questions
A Contractor of Record acts as the legal intermediary between your company and independent contractors in India. Versatile handles contractor agreements, TDS deduction, GST compliance, IP protection, and INR payments. You receive a single consolidated invoice in USD or GBP. The contractor works exclusively on your projects while Versatile manages all India-specific compliance obligations.
48 hours from signed agreement to contractor ready to work. This includes KYC verification, PAN validation, GST status check, bank account setup, and execution of a compliant contractor agreement with IP assignment clauses.
Section 194C applies to most contractor payments: 1% for individuals / HUFs, 2% for others. Section 194J applies to professional or technical services at 10%. Versatile determines the correct section, deducts TDS monthly, files with TRACES, and ensures Form 26AS reconciliation for every contractor.
Indian courts apply a substance-over-form test to determine employment vs. contractor status. Misclassification can trigger retroactive back wages, PF contributions at 12%, ESI at 3.25%, and gratuity liability. Versatile audits every engagement against established criteria and structures agreements to maintain genuine contractor status.
No. Versatile's Contractor of Record structure lets you engage contractors in all 28 Indian states without incorporating locally. This also mitigates Permanent Establishment risk under the India-US and India-UK tax treaties. You pay Versatile in USD or GBP, and we handle all local payments and compliance.
Every contractor agreement includes IP assignment clauses under the Indian Contract Act and Copyright Act 1957. Work product, source code, designs, and documentation are assigned to your company from creation. NDAs, non-solicitation, and confidentiality provisions are enforceable under Indian law. Versatile ensures these protections are legally sound across all 28 states.
Versatile charges a percentage of contractor compensation. This covers onboarding, compliance management, TDS filing, GST handling, IP protection, INR payments, and consolidated USD / GBP invoicing. No setup fees, no hidden charges. Schedule a call for a custom quote based on your team size and requirements.
Still have questions?
Talk to Our India Team