C2C (Corp-to-Corp) is a contracting arrangement where the professional operates through their own registered company or through a third-party employer, invoicing the staffing agency or end client as a business entity rather than as an individual employee. This structure is common in IT staffing for senior consultants, freelancers, and professionals who prefer to manage their own tax and compliance obligations.
In a typical C2C arrangement in India, the professional registers a proprietorship, LLP, or private limited company. They invoice the staffing agency under a services agreement, and the agency in turn bills the end client. GST applies to these transactions, and the professional is responsible for their own income tax, professional tax, and other statutory obligations.
C2C arrangements offer flexibility for both parties. Professionals can optimize their tax structure, work with multiple clients simultaneously, and negotiate higher gross rates. Agencies reduce their compliance burden since the professional is not their employee. However, C2C requires careful documentation to ensure it does not constitute a disguised employment relationship under Indian labor law.
CVPRO's vendor portal manages C2C relationships by maintaining separate billing workflows, tracking GST invoicing, managing service agreements, and ensuring proper documentation. The platform distinguishes between W2 (payrolled) and C2C (invoiced) contractors, applying appropriate compliance rules and billing structures to each engagement type automatically.