Accepting International Payments Without Company Registration

A guide on how to accept international payments without the need for a legal entity. This document explains the concept of a Merchant of Record (MoR), outlines its advantages and disadvantages, and pr

Accepting International Payments Without Company Registration

When you're just starting out, you might want to avoid the legal hassle of company registration. In this case, you can still accept payments by using a payment gateway that acts as a merchant of record.

What is a Merchant of Record (MoR)?

A Merchant of Record is a legal entity that sells goods or services to end customers, handling transactions on behalf of the actual seller. The MoR takes responsibility for payment processing, tax compliance, and legal obligations.

Advantages:

• Handles international tax compliance and regulations

• Manages payment processing and refunds

• Takes on legal liability for transactions

• Simplifies cross-border selling

Disadvantages:

• Higher transaction fees compared to direct payment processing

• Less control over the customer relationship

• Potential delays in receiving payouts

• Limited customization of checkout experience

• Chance of getting banned for terms violation

Available Payment Solutions

Lemon Squeezy

A modern alternative to traditional payment processors, designed specifically for digital products and software.

Website: https://lemonsqueezy.com

Twitter: @lmsqueezy

Polar

An open-source, modern merchant of record payment provider designed for digital products and SaaS.

Website: https://polar.sh/

Twitter: @polar_sh

Paddle

A complete commerce platform that acts as MoR. Paddle handles payments, taxes, and compliance globally.

Website: https://paddle.com

Twitter: @PaddleHQ

Dodo Payments

An Indian payment platform specializing in cross-border transactions, particularly suited for digital products and services.

Website: https://dodopayments.com

Twitter: @DodoPayments

Contact Founder: Book a meeting

Creem

A low-fee merchant of record service specifically tailored for indie hackers and SaaS businesses.

Website: https://www.creem.io

Twitter: @creem_io

Gumroad

A simple platform focused on creators and digital product sellers, offering built-in payment processing and audience-building tools.

Website: https://gumroad.com

Twitter: @gumroad

xPay

A YC-backed commerce solution for SaaS companies that handles global payments, billing operations, tax compliance, and FIRC certificates.

Website: https://www.xpaycheckout.com

LinkedIn: xpay-checkout

Contact Founder: Book a meeting

Note: Conduct thorough research before selecting a platform. Choose one that offers data export capabilities in case you need to migrate.