SaaS & B2B Tech

A SaaS business must comply with the IT Act and intermediary guidelines (if the platform hosts third-party content or data), the DPDP Act for any personal data processed (customer data, employee data, end-user data), the GDPR if serving EU customers, contractual obligations under its SaaS agreements (SLAs, data handling, security), export control regulations if the software involves restricted technology, and GST obligations (including the equalisation levy for cross-border digital services). If the SaaS product involves AI, additional compliance obligations under emerging AI regulation may apply. Corporate structuring, including the choice of entity and jurisdiction, affects tax treatment and regulatory obligations.

As a SaaS provider, you typically process customer data as a Data Processor (under the DPDP Act) or Processor (under the GDPR) on behalf of your customer, who is the Data Fiduciary or Controller. Your obligations are defined by the data processing agreement (DPA) with your customer and the applicable data protection law. Key requirements include processing data only as instructed by the customer, implementing appropriate security measures, notifying the customer of data breaches, assisting with data subject rights requests, restricting sub-processing to approved sub-processors, and returning or deleting data on termination. Your customers will increasingly require you to demonstrate compliance through certifications (ISO 27001, SOC 2) and contractual commitments.

The primary IP risks for B2B tech companies are unclear ownership of code (especially when using contractors or open-source components), inadequate protection of proprietary algorithms and trade secrets, infringement of third-party patents (particularly in software and AI), and weak contractual protections in customer and vendor agreements. Open-source licence compliance is a significant risk area. Using GPL-licensed components in proprietary software without complying with the licence terms can require you to open-source your own code. Customer agreements should clearly allocate IP ownership for custom development, integrations, and derivative works. We advise B2B tech companies on building an IP management framework that covers development, deployment, and commercialisation.