Complete Setup Guide: International Payment Collection for New Indian Businesses in 2026

Starting to accept international payments from scratch. This is the step-by-step guide for Indian businesses that have their first international client and need to get everything set up correctly — from business registration to receiving the first INR settlement.

Before You Begin: What You Need

Documents required (keep digital copies ready):

PAN card (personal or business)
Aadhaar card
Business bank account details (current account preferred; cancel cheque or bank statement)
Business address proof
Business registration document (if Pvt Ltd/LLP: Certificate of Incorporation; for proprietorship: GST certificate or trade license)
GST certificate (if registered) If you don't have a business bank account yet: Open one first. Most Indian banks (HDFC, ICICI, Axis, SBI, Kotak) open current accounts within 3-7 days with proper documentation.

Step 1: Register Your Business Entity

For freelancers and consultants (no formal entity yet):

You can accept international payments as an individual (your PAN, Aadhaar, personal bank account converted to current account). However, a formal business structure (LLP or Pvt Ltd) provides better credibility for international clients and cleaner compliance.

For most early-stage Indian businesses:

Sole Proprietorship: Simplest. Your PAN is the business PAN. Open a current account in your name. Acceptable for international payments.
LLP: More formal, separate legal entity, lower compliance than Pvt Ltd. Recommended if you have a co-founder.
Pvt Ltd: Highest credibility, most complex compliance. Recommended when you have significant revenue or seeking investment. Timeline: Sole proprietorship = immediate. LLP = 7-14 days. Pvt Ltd = 10-20 days.

Step 2: Open a Business Current Account

Why current account vs savings account:

Current account handles high transaction volumes without limits
More professional for international client banking details
Required by most payment platforms for merchant onboarding
Banks treat international remittances differently in current accounts Best banks for international-receiving Indian businesses:
HDFC Business: Good inward remittance processing, widely used
ICICI Bank: Strong international banking desk
Axis Bank: Competitive exchange rates, good for cross-border
Federal Bank: Known for forex-friendly banking Timeline: 5-10 business days to open account.

Step 3: Get GST Registration (If Applicable)

GST registration is mandatory if your projected aggregate annual turnover exceeds ₹20 lakh (₹10 lakh in special category states). International service income counts toward this threshold.

If you're below the threshold: You can still register voluntarily (recommended if you want to claim input tax credit on business expenses).

Timeline: GST certificate issued within 7-10 days of application.

Step 4: File LUT (Letter of Undertaking)

Once GST-registered, file your LUT immediately via the GST portal:

Log into GST portal (gstin.gov.in)
Go to Services → User Services → Furnish Letter of Undertaking (LUT)
Fill Form GST RFD-11
Select financial year
Submit. Receive LUT acknowledgment number. This enables you to issue invoices for international services at 0% IGST (zero-rated) without paying IGST upfront.

Timeline: LUT active immediately on submission. Takes 10 minutes.

Note: File LUT every April for the new financial year. It expires at year-end.

Step 5: Set Up Playto Pay for International Payment Collection

Playto Pay is the fastest path to active international payment collection for new Indian businesses:

**5a. Apply at **playto.so

Complete online KYB application
Provide business details, PAN, Aadhaar, GST (if applicable), bank account
Upload supporting documents 5b. KYB review (24-72 hours)

Playto Pay's compliance team reviews your application. Standard Indian business profiles approve within 24-72 hours.

5c. Bank account verification

Link and verify your Indian business current account.

5d. Configure your account

Enable international card acceptance
Enable VBA wire receipts (USD/GBP/EUR/AED account details generated)
Enable UPI for Indian customers
Set payment descriptor (your business name as it appears on customer card statements) 5e. Test transaction

Process a small test transaction to confirm end-to-end: payment link → card processed → FIRA generated → INR settled to bank.

Step 6: Update Your Invoice Template

Your invoice template needs to be ready before your first international invoice. Essential elements:

[Your Business Name]
[Address] | [PAN] | [GSTIN if applicable]

INVOICE #: INV-001
Date: [Date]
Due Date: [Payment Terms - e.g., Net-7]

Bill To:
[Client Name]
[Client Address]

Description | Amount
[Service Description] | $[X]

Subtotal: $[X]
Export of Services - IGST @ 0% (Zero Rated - LUT filed for FY 2025-26)
Total: $[X]

PAYMENT OPTIONS:
1. Pay by Card (Instant): [Playto Pay Link]
2. Bank Transfer (USD):
   Account Name: [Your Business Name]
   Routing Number: [USD VBA from Playto Pay]
   Account Number: [USD VBA from Playto Pay]
   Reference: INV-001

Step 7: Send Your First Invoice and Receive Payment

Send invoice via email. Include both payment options (card link + VBA bank details).

Client pays. Via card (Playto Pay checkout) or wire (VBA bank transfer).

You receive notification. Playto Pay dashboard shows payment received. FIRA automatically generated.

INR settlement. Next business day, INR credited to your Indian current account.

Download FIRA. From Playto Pay dashboard. File alongside your invoice in your accounting records.

Step 8: Set Up Accounting and Compliance

Accounting software (start immediately):

Zoho Books (₹999-2,499/month): Best India-GST-native option for international businesses
Record each international payment: foreign currency amount, exchange rate, INR received, platform fee, FIRA reference CA engagement:
Engage a CA familiar with international business income before first GST filing
Share business model, international client geographies, service description
Confirm purpose code for your service category First GSTR-1 filing: Due by 11th of month following your first month with revenue. Your CA handles this using Zoho Books data.

First 90 Days Checklist

FAQ

How quickly can I start accepting international payments? With existing PAN, Aadhaar, and bank account: Playto Pay KYB in 24-72 hours. Your first international invoice can go out within 3 days of starting this process.

Can I accept international payments without GST registration? Yes, if below the ₹20 lakh threshold. But without LUT, you lose zero-rated export treatment. Voluntary GST registration is recommended for businesses expecting regular international income.

Do I need a separate bank account for international payments? You can use one business current account for all business income (domestic + international). Keep it separate from personal savings account. Playto Pay and Skydo settle INR to your current account.

What's the minimum setup for a freelancer to accept their first international payment? PAN + Aadhaar + current account + Playto Pay KYB = 3-5 days. Minimal and sufficient for first payment.