Two products. Both involve contracts. Both involve payments.
But they are fundamentally different in terms of who owns the legal relationship and who handles compliance. Picking the wrong one can leave you exposed to TDS, misclassification, and IP risks you may not see for 18 months.
This is a short, honest guide to choosing between Omnivoo’s Contract Management and Contractor of Record (CoR) products.
1. What is Contract Management
Contract Management is exactly what it sounds like. Omnivoo drafts the contract between you and your contractor. We manage the payments. We provide the platform, the templates, the audit trail, and the payment rails.
But here is the key thing — you sign the contract. The legal relationship is between you and the contractor. Omnivoo is just the tool that makes it happen.
Think of Contract Management like hiring a lawyer to draft your contract. The lawyer is not your contractor’s employer. You are. The lawyer just wrote the paperwork.
This means:
- Your contractor can be anywhere in the world — India, Brazil, the Philippines, Germany, anywhere
- You own the compliance — TDS, taxes, and legal obligations are yours
- If the contractor disputes the contract, you are the party in the dispute
- Contract Management is Omnivoo’s most global product — no India-specific compliance needed
2. What is Contractor of Record (CoR)
CoR is a fundamentally different product. When you use CoR for an Indian contractor, Omnivoo — specifically our India entity — becomes the legal contracting party. We sign the agreement with the contractor. You manage their work. We own everything else.
Think of CoR like hiring through a staffing agency. The agency has a contract with the worker. You have a contract with the agency. The worker is legally the agency’s contractor, not yours.
Because Omnivoo is the legal contracting party, we handle:
- TDS deduction — 194C for work contracts, 194J for professional services
- TDS deposit to government by the 7th of the following month
- Form 26Q quarterly filing
- Form 16A issued to contractor annually
- Misclassification review at onboarding
- IP enforcement as the legal contracting entity
CoR is only for Indian contractors.
3. Why not just pay directly
The honest answer: if it is a one-off small payment for a short project — paying directly is probably fine.
But the moment you have an ongoing relationship with an Indian contractor — someone working on your product every week — three risks appear:
TDS risk. When a company pays an Indian contractor above Rs 30,000 in a single payment or Rs 1,00,000 in a year, TDS must be deducted at source. Most foreign companies do not know this. The Income Tax Department sends a notice 18 months later for unpaid TDS, interest, and penalties. With CoR, Omnivoo handles all of this.
Misclassification risk. If a contractor works full-time, follows your processes, and has no other clients — Indian labour law may classify them as an employee. The company is then liable for backdated PF, ESIC, and gratuity. With CoR, Omnivoo reviews every engagement for misclassification risk before you sign.
IP risk. In India, unless a contract explicitly assigns IP to the client, the creator owns what they make. With Contract Management, you enforce the IP clause. With CoR, Omnivoo enforces it as the legal contracting party.
4. Side-by-side comparison
| Feature | Contract Management | Contractor of Record |
|---|---|---|
| Who signs with contractor | Client signs directly | Omnivoo signs |
| Omnivoo role | Neutral facilitator | Legal contracting party |
| Contractor location | Anywhere globally | India only |
| TDS responsibility | Client handles own taxes | Omnivoo deducts and files |
| Compliance liability | Client owns it | Omnivoo is liable |
| Misclassification protection | None | Omnivoo reviews at onboarding |
| Pricing | $49 per contract (transaction fees at cost) | $29 per contractor per month |
5. When to use which
Use Contract Management when:
- Contractor is outside India
- One-off or short project
- You are comfortable owning the legal relationship
- No TDS obligation — payment below threshold or non-Indian contractor
- You want a global platform for contractors across many countries
Use CoR when:
- Contractor is in India
- Ongoing engagement — 3 months or more
- Payment exceeds Rs 30,000 — TDS threshold triggered
- IP is sensitive and you want Omnivoo to enforce it
- You want zero India compliance exposure
6. Three questions to decide
-
Is your contractor in India?
- No → Contract Management
- Yes → continue
-
Will the payment exceed Rs 30,000 per payment or Rs 1,00,000 per year?
- Yes → TDS applies → CoR is the right choice
- No → continue
-
Is the work ongoing or IP-sensitive?
- Yes → CoR protects you
- No → Contract Management is fine
Still unsure?
Tell us about your contractor situation — country, scope, ongoing or not, payment volume. We will recommend the right product. Talk to our team →