Zero-Office Startups Abroad Serving Indian Clients: OIDAR Guide

Introduction

Zero-office startups are designed to remain lean, remote, and borderless. However, when digital services are offered to Indian users, Indian tax laws still apply. If your startup sells SaaS products, digital content, e-learning platforms, or any online service to Indian consumers, OIDAR GST registration becomes mandatory.

In this guide, we at Ebizfiling explain how foreign founders can obtain GST registration for foreign companies under OIDAR without opening an office in India and remain compliant in a simple and practical way.

What are zero office startups serving Indian clients?  

Zero office startups are businesses with founders, teams, and operations entirely outside India, often distributed across countries, with no branch, subsidiary, or employee in India. Yet, they still sell to Indian users through websites, apps, online marketplaces, or subscription platforms.

If you run a SaaS tool, design or marketing platform, online coaching, e-learning, or digital subscription from abroad and your users sit in India, Indian GST law still looks at you as a supplier of OIDAR services. Official GST say that GSTR-5A is specifically for OIDAR providers outside India supplying to persons in India, even if there is no physical presence.

In simple words, your zero office model does not exempt you from Indian GST. It only means you need a smart structure to handle OIDAR registration and ongoing compliance remotely.

Why do zero office startups need OIDAR GST registration?  

According to official OIDAR guidance issued by CBIC and the GST portal, foreign digital service providers must register in India if:

• You are located outside India.

• You provide online information database access or retrieval services to customers in India.

• Those customers are not registered under GST (B2C or unregistered entities).

Key points that matter for zero office startups:

• No turnover limit: Registration is compulsory even if you have just one paying Indian consumer. Unlike normal GST registration thresholds, there is no minimum turnover for foreign OIDAR suppliers.

• Standard GST rate: OIDAR services are generally taxed at 18 percent IGST in India, with a specific lower rate only for some e-books.

• B2B vs B2C: If you sell only to GST-registered Indian businesses, they normally pay GST under reverse charge. But the moment you sell to even one unregistered user, OIDAR registration becomes your responsibility.

From Ebizfiling’s experience, many founders assume, “We are not in India, so India cannot tax us.” In reality, place of supply rules and OIDAR provisions clearly bring your digital revenue from Indian users into the GST net

How does OIDAR registration work for foreign companies with zero local presence?  

The good news is that OIDAR registration is fully online. You do not need to incorporate an Indian company or open a physical office. Based on the official non-resident online services provider manual on the GST portal, the broad process looks like this

Stepwise view of OIDAR GST registration  

According to official GST registration help pages and user manuals, all of this is done through the online registration module, using electronic verification codes instead of physical signatures.

For a zero office startup, the most practical path is to let a compliance partner like Ebizfiling own the end-to-end interaction with the GST portal while you approve documents and decisions.

What are the ongoing GST duties for foreign zero office startups?  

Once OIDAR GST registration is done, your startup has three core obligations for its Indian consumer revenue:

1. Charge 18 percent IGST on eligible sales  

• You need to charge 18 percent IGST on invoices raised to Indian consumers and other unregistered recipients.

• If a client shares a valid GSTIN, that sale may fall under reverse charge, so you typically do not charge GST and the Indian business handles tax at its end.

2. File GSTR-5A every month  

Official GST FAQs on GSTR-5A clearly state that:

• Form GSTR-5A is the return for OIDAR providers outside India supplying to persons in India.

• It must be filed every month by the 20th of the month following the tax period, unless extended.

In practice, that means:

• January sales to Indian consumers → GSTR-5A due by 20 February.

• February sales → GSTR-5A due by 20 March, and so on.

3. Pay GST in INR  

• GST calculated on your Indian sales must be paid in Indian Rupees through the GST portal.

• Most foreign companies pay using international cards or bank transfers against an online challan generated on gst.gov.in.

How Ebizfiling helps zero office startups stay compliant  

We work with many zero office startups who want to tap the Indian market without building a local finance team. For OIDAR registration and GST registration for foreign companies, we typically:

• Map your business model: Identify whether your services qualify as OIDAR and separate B2C vs B2B revenue streams.

• Act as your authorized representative in India: Provide a reliable contact point and handle all GST portal communication and notices.

• Execute OIDAR GST registration: Prepare documents, file Form GST REG-10, and track approval from the designated GST officer.

• Set up monthly GSTR-5A filing: Create a simple format to pull Indian sales data from your billing tools, convert to INR, and file accurately.

• Advise on invoice and pricing structure: Help you decide whether to keep Indian prices GST inclusive or show IGST separately and structure invoices as per GST rules.

• Keep you updated on rule changes: track updates from www.gst.gov.in and cbic-gst.gov.in and alert you if anything affects your zero office compliance model.

Our goal is simple: you stay remote and product focused, while Ebizfiling quietly handles the India side of OIDAR and GST every month.

How to make OIDAR compliance practical for a lean remote team?  

For most zero office startups, the biggest fear is “one more tax system.” In our view, the process becomes manageable if you:

• Centralize Indian sales data in one report each month with country and state fields.

• Tag every Indian customer as B2C or B2B with GSTIN status in your CRM or billing platform.

• Fix one internal cut-off date (say the 10th) to share data with Ebizfiling for that month’s filing.

• Use simple SOPs so your support team can answer basic GST questions using standard responses.

• Review your India pricing once a year to ensure GST costs are built into your global model.

Based on experience across multiple foreign clients, once the structure is set, OIDAR GST registration and returns largely run like a repeating monthly checklist rather than a complex project.

In short, 

Zero office startups do not need an Indian office to be fully compliant in India, but they do need clear OIDAR registration and GST systems. With the right partner, you can get OIDAR GST registration, handle monthly GSTR-5A, and keep serving Indian clients confidently while your team stays 100 percent remote.

h5 style=”font-size: 20px;”>Suggested Read :

Balancing OIDAR GST Compliance with Digital Privacy Laws

OIDAR Compliance Roadmap for Foreign Startups 

GST Registration for OIDAR Service Providers in India

Why User Location Matters for OIDAR India?

Do Digital Nomads Abroad Trigger OIDAR for India?

Frequently Asked Questions on OIDAR Registration for Zero Office Startups