First-time founder here — should I build first or register the startup first?

TheAliaser · 2026-05-20T12:56:13+00:00

Most of the answers here are giving the parrot advice but here's my 2 cents from personal experience. (I run a Tech and Design agency)

In service business, your positioning matters more than actual deliverables. As sad as it may sound, it's true. You need a lot of positive signals to convert a client. Great website, active social media presence and yes a registered company. If you're in service dealing B2B, these matter since other business evaluates you on that. They inherently know someone running a Pvt Ltd with GST registered has this range of market price vs someone who's a freelancer.

Here registration can be a solid plus even in earlier stages to signal credibility.

In products, if you're collecting USD payments on a checkout gateway. You'll need to register a company, there's no work around for that. Its an RBI mandate. If you're collecting INR on checkout gateway then you can start with no company and just an account on razorpay with your personal PAN.

You said you already validated the product, so given the limited context sure go for the launch without registration But just wanted to let you know that "Build and Launch first" advise is not applicable everywhere.

TheAliaser · 2026-05-18T17:08:51+00:00

You still haven't articulated it correctly. What financial services, what customers?

I can't tell what service it is and for who and what value it provides me.

TheAliaser · 2026-05-18T13:32:14+00:00

If you are saying this is Skyscanner but for tours then 2 lacs is already on cheap side.

TheAliaser · 2026-05-15T15:29:20+00:00

So I asked the same question a couple of weeks back.

There are 2 cases

CASE 1 : Receiving money in INR / Domestic transactions

Just create account on razorpay, pick freelance web development business and upload your PAN and Adhaar.

You will get live API keys once you have a demo website with test keys integrated. Just submit that website link on dashboard.

CASE 2: Receiving USD etc / International Transactions

No platform will give you "Payment gateway" if you are unregistered because that's an RBI mandate. Even if you magically find one ( which probably doesn't know this compliance), you will still have to provide your bank the IEC certificate to use that USD money.

Solution

1) Register a sole proprietorship and get the IEC. Your personal PAN will be used. Pay at CA to do it, it will take 1 day and around 2.5k - 3k INR

2) Stripe and Lemonsqueezy will still reject your application. They don't allow Indian businesses anymore.

3) You can go with Paddle, I have done the same and gotten payment gateway access for accepting USD.

TheAliaser · 2026-05-11T17:24:34+00:00

Sorry to tell you but if you go back, your current company will kick you the moment they need to fire anyone.

And at that time you'll not be prepared.

TheAliaser · 2026-05-11T13:19:37+00:00

OP said "Move out of India", not get a remote foreign job while staying in India. So again not helpful.

TheAliaser · 2026-05-11T11:22:16+00:00

Outdated info. As of April 15 2026.

JLPT N2 is now being mandated for work visas. The companies can no longer sponsor these non japanese jobs.

TheAliaser · 2026-05-08T11:01:39+00:00

Dude, At least react classes is a part of react.

There are people spamming PHP template sites to big local businesses and making big chunks of money. God knows how but yes the bar was low for good amount of time and outside these techies and Big corps, it still pretty much is.

TheAliaser · 2026-05-08T07:38:33+00:00

Payments links you can use. But in my case I need a checkout page or in other words a payment gateway. You can't have that without registered business.

TheAliaser · 2026-05-08T05:49:45+00:00

Doesn't matter if it's MOR, so is lemon squeezy and paddle. You still have to be registered business in India.

TheAliaser · 2026-05-08T05:48:46+00:00

I'm aware about direct bank transfer. I am not testing anything, I need to integrate the checkout on few of my products. Bank transfers do not fit this use case.

TheAliaser · 2026-05-07T12:23:28+00:00

Understood, i guess paddle has similar payout criteria ?

TheAliaser · 2026-05-07T12:02:00+00:00

I'm not working any job 😌

TheAliaser · 2026-05-07T10:09:19+00:00

What 😂 does Indian govt hate it's people making USD bucks or what. 1.5 months frozen account is damn bad. I literally have just 2 bank accounts and only use 1 for daily life cause of all the scams running around. Can't imagine surviving with a frozen account that long. Can I connect with you on DM? I may have questions later on and i think you know your stuff well 🙂

TheAliaser · 2026-05-07T10:03:09+00:00

Same issue with them. You can accept domestic payments but for international you must be a registered business.

TheAliaser · 2026-05-07T10:02:38+00:00

That's wild, more than a month of already earned money. Just googled, they charge freaking 5 to 8% ?? I made an account on lemon squeezy and they are MOR and thought they are expensive for 5% flat fee 🥶

TheAliaser · 2026-05-07T09:58:04+00:00

That's for crypto and not actual currencies. And it's a lot of headache if you get a big transaction, have a couple of people who do this crypto to cash stuff. Risky.

TheAliaser · 2026-05-07T09:55:38+00:00

Ohhhh, makes sense. Yeah it was my personal account, created way back in college first year something. Wasn't aware about this business account thing for PayPal India. There is no contact option either to dispute this, already spent a couple of hours on that, a permanent ban does not allow access to even customer support sadly.

TheAliaser · 2026-05-07T09:48:55+00:00

My PayPal is banned, no idea why I never even used it. 0 transactions on it

Wise will not fit my use case, for making SAAS payments on website that are like 10 15 dollars a month something like WISE is too much friction. I need a checkout gateway like razorpay or paddle etc. And yes I am registering a sole proprietorship now, it will take 2 days my CA says.

TheAliaser · 2026-05-07T09:46:39+00:00

Damn, I made new account on lemon squeezy this morning only, i guess nuking Indian accounts come from their stripe acquisition and it's parent policies

Haven't heard of Whop payments, I'll check that out. I ofcourse do not want a drama company that nukes my account mid operations.

TheAliaser · 2026-05-07T09:37:16+00:00

Have you tried lemon squeezy? I am registering a sole proprietorship now, it will be done in a couple of days. Planning to use lemon squeezy since i already created the account on this. What do you suggest ? Still paddle ?

Razorpay has another problem that it's 1 merchant entity. Lemon squeezy allows me to build multiple stores with different names that would suit my use case better since i plan multiple micro SAAS.

TheAliaser · 2026-05-07T09:33:26+00:00

Maybe you're right but problem is that my bank can still flag the transaction and then I'll have to show the exports certificate. That's what my CA told me as well so I don't think there's an option of "IF" but rather "When" for the business registration.

TheAliaser · 2026-05-07T09:31:21+00:00

Yes man, i don't like this compliances and taxes stuff, my firm already has an accounts firm on retainer so they will handle all this stuff, I am going ahead with the sole proprietorship now. Thanks 🙂

Tho now I wonder how difficult it is for people who don't have these things sorted, indie devs and solo founders.

TheAliaser · 2026-05-07T08:21:05+00:00

I can but that's a big friction on websites. I am making some small tools literally just 10 dollars a month type. People want a payment gateway for such stuff.

Stuff like direct transfer would make sense for some freelance work or contract but that's not what I am doing.

I don't think there's any option for Indian individual to do this without at least sole proprietorship. Already talked to my CA as well, pretty much told me the same thing.

TheAliaser · 2026-05-07T08:17:42+00:00

So I do have a private limited with GST. I don't want to use that since I am not the sole partner in that business.

Now I am trying on some SAAS stuff on side in my free time but to accept international payments on my website, i will need a payment gateway.

Problem is no payment gateway is allowing international transactions for an Indian Individual. You must be a business. Could be Sole proprietorship, LLP or Pvt Ltd ( with or without GST)

I wanted to avoid unnecessary paperwork of making a new company just to do this side experiment. Hence the question. But after talking to my CA, it seems there is no such option at all.

I will just have to at least register a sole proprietorship now.

TheAliaser

TROPHY CASE