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Why is choosing a payment gateway a compliance decision, not just a UX one?
A payment gateway onboards one legal entity in one country. If the merchant of record, the bank account and the tax residency do not line up, you have built a FEMA and GST problem into your checkout page.
Quick Answer: Your gateway choice is an entity choice. A US LLC cannot legally run payments through Razorpay India or Stripe India, because those products onboard Indian-registered businesses with Indian bank accounts. An Indian entity cannot simply "use Stripe US." Pick the entity first, then the gateway that matches it.
The term to learn is merchant of record. That is the entity legally selling to your customer and receiving the money. It is not a setting you toggle. It is the name on the gateway account, the name on the bank account, and the name on the invoice. When all three match, your paperwork is clean. When one drifts, you are the founder explaining to a bank why a US LLC received money for an Indian company's invoice.
Say your US LLC signs a US client for $4,000 a month. If that client pays into a Razorpay India account held by your Indian proprietorship, the merchant of record is Indian, the service was delivered by the US LLC, and the invoice names a third party. Three mismatches, one transaction.
You have two compliant paths:
- Path A: US LLC plus a US gateway, for export of services billed in USD.
- Path B: Indian entity plus an Indian gateway, for domestic customers and exports with a GST LUT.
Both paths work. Mixing them inside one transaction does not. If you are still deciding on the entity itself, start with US LLC formation for non-residents before you touch a gateway signup.
US gateway on a US LLC: what do you actually need before you can accept a payment?
You need four things: an EIN (the IRS tax ID for your LLC), a US business bank account or a fintech account that accepts the LLC, a US business address, and your own identity documents for beneficial-ownership checks.
Stripe's US onboarding asks for the legal business name, EIN, a US bank account for payouts, a business address and owner details. Miss any one and the account stalls in review. The bank account is the step Indian founders underestimate. Open that before the gateway, not after. Opening a US business bank account with a fintech provider is the usual route for a foreign-owned LLC, and it takes days, not minutes.
No SSN? That is normal. A foreign-owned single-member LLC applies for its EIN on Form SS-4 by fax or phone, and the responsible party does not need a US Social Security Number. If you want the mechanics, see getting an EIN as a non-US resident.
On Razorpay: Razorpay runs a US product at razorpay.com/us [6], separate from its Indian platform. Whether that US product onboards a foreign-owned LLC with no US founder presence is not something I can confirm from public documentation. Treat it as a question to ask their sales team in writing.
Stripe India and Stripe US are different entities serving different countries. A US LLC uses Stripe US. Searching "stripe india us llc" and hoping to bridge the two leads nowhere.
| Gateway | Entity it onboards | Settlement account | Notes |
|---|---|---|---|
| Stripe US | US entity | US bank account | EIN and US address required |
| Razorpay USA | US entity | US bank account | Check eligibility for foreign-owned LLCs |
| PayPal Business | Varies by country | Local bank | Confirm which entity type your country supports |
| Wise Business | Not a gateway | Multi-currency account | Use for receiving and holding, not card checkout |
Indian gateway on an Indian entity: what changes for FEMA, GST and repatriation?
The Indian entity becomes the merchant of record. Export of services is zero-rated under GST, and you file a LUT (Letter of Undertaking) so you do not pay IGST upfront on those exports. Inward remittance then follows FEMA rules, with a purpose code declared and an FIRC (Foreign Inward Remittance Certificate) issued by your bank as proof.
GST first. Zero-rating is not automatic paperwork. File the LUT with the GST portal before you invoice your first foreign client. Skip it and you pay IGST on export revenue and chase a refund later. That refund process is slow and document-heavy.
FEMA next. Every inward payment for an export of services needs a purpose code declared to your bank. The bank issues an FIRC or FIRA confirming the money arrived and what it was for. That certificate is your evidence for zero-rating and for any future FEMA query. No FIRC means no clean proof.
Imagine your Indian Pvt Ltd bills a UK client £10,000 for design work. The client pays by wire, your bank credits the account, you declare the export-of-services purpose code, and the bank issues the FIRC. That file is now complete. If the same client had paid your US LLC instead, the Indian entity has revenue with no receipt and the US LLC has receipt with no invoice.
Razorpay India onboards Indian entities [7]. It does not onboard a US LLC. Searching "razorpay us llc" leads to the US product, which is a separate thing entirely.
| US LLC + US gateway | Indian entity + Indian gateway | |
|---|---|---|
| Merchant of record | US LLC | Indian entity |
| GST on export | Not applicable to the LLC | Zero-rated with LUT |
| FEMA | Out of scope for the LLC | Purpose code and FIRC required |
| UPI and netbanking | Not available | Available |
| Settlement currency | USD | INR |
Razorpay, Cashfree and Stripe India in practice: who do they actually onboard?
All three onboard Indian-registered entities with Indian bank accounts. None of them will onboard a US LLC as the merchant.
Razorpay's international payments product covers 130+ currencies, cards, local bank transfers and Apple Pay [1]. That is a strong offer for an Indian entity selling abroad. It is not available to your Wyoming LLC.
Stripe India's international payments feature is invite-only according to Stripe's own documentation [2]. Onboarding requires an Indian entity and Indian bank account, and Stripe lists conditions around card types and goods sold. You cannot self-serve your way in.
Cashfree onboards Indian entities. Its current scope for international card acceptance is something to confirm directly with them.
Suppose you run an Indian SaaS company with 60% US customers and 40% Indian. The Indian customers pay by UPI and netbanking, which only an Indian gateway gives you. The US customers can pay by card through the same gateway, or through a US LLC if you set one up. One entity, one gateway, two customer bases, clean books.
How do repatriation and documentation work when money crosses between the US LLC and India?
Every cross-border movement needs a paper trail: an invoice, an agreement, a purpose code, an FIRC, and for outbound money from India, Form 15CA and 15CB where they apply.
Here is the direction that trips people up. Money coming into India for services does not need 15CA/15CB. Money going out of India does, above the thresholds set by the Income Tax Department, and 15CB is a chartered accountant's certificate. Founder draws, service fees paid to a US LLC, and dividends all fall under this.
When your US LLC pays your Indian entity for development work, that is a related-party transaction. You need an intercompany services agreement, arm's-length pricing, and invoices that match the bank credits. Same founder on both sides does not make it a transfer between your own pockets in the eyes of the tax authorities.
That related-party structure also raises transfer pricing and permanent establishment questions. If the Indian entity does substantial work for the US LLC, a tax authority can argue the US LLC has a taxable presence in India, or that the pricing between them is not arm's length. This is a conversation for a CA and a US CPA together, not a blog post. Federal tax support for Form 5472 and Form 1120 covers the US side of that filing.
| Direction | Documents needed |
|---|---|
| Customer to US LLC | Invoice from US LLC, gateway payout record |
| Customer to Indian entity | Invoice, purpose code, FIRC |
| US LLC to Indian entity | Intercompany agreement, invoice, FIRC, transfer pricing file |
| Indian entity to US LLC | Intercompany agreement, invoice, Form 15CA/15CB where applicable |
Common Mistakes
Avoid routing business revenue through a personal account, and avoid letting the merchant of record, the bank account and the tax residency point at three different entities.
Specific failure modes I see:
- Personal savings account for US client payments. This is a FEMA exposure and a fast route to a bank freeze. Business receipts belong in a business account tied to the correct entity.
- A friend's US address on Stripe onboarding. Address verification fails, the account gets flagged, and payouts hold. Use an address you control.
- No LUT before the first export invoice. You pay IGST you did not owe and wait months for a refund.
- Skipping the FIRC. Without it you cannot prove the remittance was for export of services, and your zero-rating evidence is thin.
- Two entities, no intercompany agreement. The moment money moves between them, you need the paper.
- Treating Payoneer or Wise as a compliance strategy. These are wallets and receiving accounts. They are not the merchant of record and they do not file your GST or your 5472.
Tip: keep the US LLC's books and the Indian entity's books in separate accounting files from day one. Merging them later for a tax query costs more than the bookkeeping did.
Which setup fits your business: US LLC with a US gateway, Indian entity with an Indian gateway, or both?
If your customers are mostly US and international and you want USD pricing, a US LLC plus a US gateway is the cleaner setup. If you have Indian domestic customers or need UPI, keep an Indian entity with an Indian gateway and invoice the US LLC for services.
Decision criteria, in order of weight:
- Customer geography. Mostly US or EU: US LLC. Meaningful Indian base: Indian entity.
- Payment methods. UPI and netbanking only exist on the Indian side.
- Currency. USD pricing and USD settlement favor the US LLC.
- GST input credits. The Indian entity can claim them; the US LLC cannot.
- Investors. Most US venture investors want a Delaware C-Corp, not an LLC.
Say you run a dev agency with three US clients and two Indian ones. The clean model is a US LLC invoicing the US clients, an Indian entity invoicing the Indian clients, and an intercompany agreement where the Indian entity bills the US LLC for delivery work at arm's length. Two gateways, two sets of books, one founder.
On cost, keep the buckets separate. Government fees are the EIN (free from the IRS) and GST registration. Provider fees are the gateway percentage plus FX spread. Recurring costs are the registered agent, state annual report and compliance filings. Do not blend them into one headline number.
Do this: decide the entity before you open a single gateway account. Skip the "try both and see" approach, because switching merchant of record after you have revenue is far more painful than choosing correctly at the start.
NexFyla helps non-US founders form US companies and set up EIN and US business banking support. If you want help with US LLC formation, EIN and business setup, NexFyla can assist.
Frequently Asked Questions
Can a US LLC use Razorpay India or Stripe India to accept payments? No. Both onboard Indian-registered entities with Indian bank accounts. A US LLC uses Stripe US or Razorpay USA, and Razorpay USA eligibility for foreign-owned LLCs needs confirming.
Do I need GST registration in India if my US LLC earns from US clients? Not for the US LLC's US revenue. GST applies to the Indian entity's supplies, and export of services is zero-rated with an LUT. Get a CA opinion on related-party flows.
What is an FIRC and why does it matter for repatriation? A Foreign Inward Remittance Certificate issued by your bank. It proves the inward remittance for FEMA and supports your zero-rating evidence.
Can I receive US client payments into my Indian savings account? No. Business receipts need a business account tied to the correct entity. Personal accounts risk FEMA issues and bank freezes.
When do Form 15CA and 15CB apply? For outbound remittances from India above the thresholds, with 15CB as a CA certificate. Inbound remittances to India do not need them but still need purpose codes and an FIRC.
Is it legal to own both a US LLC and an Indian entity and invoice between them? Yes, with an intercompany services agreement, arm's-length pricing and proper documentation. Watch permanent establishment and transfer pricing.
*Last updated: February 2026.*
Related reading
- Mercury vs Wise vs Payoneer for a Non-Resident US LLC
- How to Register a US LLC from India: Step by Step
- US LLC From India: What the Structure Really Costs You
Ready to act on this? US company formation takes the filing, registered agent and paperwork off your desk.