Need Inputs: I have an offer from non-Indian company and to set up working relationship they are open to two options: 1. Employer of Record setup 2. Freelancer contract (They are willing to offer extra cash component to cover for medical insurance / social security) I am thinking of going with second option to avoid any third party involvement and also I assume tax benefits will be better in option 2 (with some headache of booking keeping and managing taxes ourselves). I guess in option 2 also there are various options which I don't know much about (setting up LLP/any other options/..) Kindly share any inputs/feedbacks on what is the best way to setup working relationship with non-Indian company. They are open to options that can benefit both the parties.

I am already working as a freelancer since 1.5 years with non-indian companies and my experience has been really great. There are many benefits like You can start freelancing as an individual and receive payment directly in your bank account. No need for GST (If annual income is less than 20 Lakh) because its non Indian company and lastly there is a lot flexibility. Also the other benifit is section 44ADA (Depending on the work/service you offer)

I believe we need GST for exports even when 20L limit is not breached. Had written some benefits of self employment. https://www.sidharth.dev/posts/selfemployment/

Went ahead with option 2. Thanks everyone for the inputs 🙂