Collect and verify documents
- Legal entity details and registration documents.
- Tax registrations such as PAN and GSTIN, checked against the government portal.
- Bank details confirmed through a cancelled cheque or bank letter, and verified by a call-back to a known number.
- Signed agreement or purchase terms.
Assign ownership
Every vendor needs an internal owner who answers questions about scope, quality and invoices. Without one, invoices sit in shared inboxes and nobody can approve them.
Agree service levels and invoicing rules
Write down delivery expectations, invoice format, required purchase order references and payment terms. Vendors paid on time are usually the ones who were told exactly what a valid invoice looks like.
Control system access
If the vendor needs access to your systems, grant the least access needed, with an end date, and record it in the access register so it is removed when the work ends.
Protect against bank detail fraud
Treat any request to change bank details as high risk. Verify it by calling a known contact, never through the email that requested the change.
Takeaway
A short, enforced checklist at onboarding prevents most payment delays, duplicate vendors and access leaks later.
Frequently asked questions
What documents are needed to onboard a vendor in India?
Typically entity registration, PAN, GSTIN where applicable, verified bank details and a signed agreement or purchase terms.
How do you prevent vendor bank detail fraud?
Verify any bank detail change with a call-back to a known contact, not through the email that requested it.
Why does each vendor need an internal owner?
An owner answers scope and invoice questions, so approvals and payments do not stall.