deepthi sWith over 1.3 million cyber incidents reported in India last year, SOC compliance has shifted from optional to essential for SaaS, fintech, and retail companies pursuing global clients.
Yet many Indian businesses still struggle with a fundamental question: SOC 1 vs SOC 2 compliance, which matters for your business?
Whether you’re evaluating SOC 1 vs SOC 2 reports, comparing SOC 2 Type 1 vs Type 2, or simply trying to understand the difference between SOC 1 and SOC 2,
This blog breaks down each framework to help you make the right compliance choice.
How Mitigata Helps You Meet SOC Compliance Requirements Faster
Most compliance tools are built by teams that have never faced a real audit. Mitigata is different. We are certified to ISO 27001, HIPAA, GDPR, and SOC. We do not just explain compliance. We have lived it, passed audits, and refined what actually works.
Here is how Mitigata helps you move faster:
Guided SOC readiness workflow: Step-by-step guidance for every SOC control, with clear instructions, templates, and evidence requirements
24/7 support + automation: Automation handles evidence collection and monitoring, while experienced compliance experts support you when you need clarity.
Clear audit preparation: All evidence is organised, mapped to controls, and ready for auditors, reducing last-minute stress.
Complete GRC automation platform: Manage SOC, ISO 27001, HIPAA, and GDPR in one place as your compliance needs grow.
Transparent, market-friendly pricing: Pricing that scales with your company, without hidden costs or surprises.
Trusted auditor partnerships and 500+ tools: Work with top auditors and access built-in tools for risk management, policies, vendors, and incident response.
See All Your Risks Clearly on a Single Dashboard
Track open risks, control status, vendor assessments, and audits instantly with Mitigata’s cost-effective and scalable GRC platform.
What is SOC 1 Compliance?
SOC 1 focuses on Internal Controls over Financial Reporting (ICFR), ideal for services impacting client audits like payroll or billing platforms.
For Example, if an Indian fintech company runs a payment gateway or payroll software for US clients, those clients rely on it to process salaries or payments correctly.
Any error could affect financial statements. SOC 1 gives clients confidence that transactions are accurate and properly controlled.
SOC 1 Type 2 goes a step further and verifies that these controls are not just designed properly, but are working effectively over a period of 6–12 months.
When Needs SOC 1 Compliance?
- Service organisations that handle or affect customers’ financial reporting
- Companies that process financial transactions for clients
- Payroll providers
- Billing and invoicing services
- Payment processors
- Loan servicing companies
- Claims processing firms
- Trustees or fund administrators
- Any vendor whose controls impact a client’s internal controls over financial reporting (ICFR)
Why do modern SOC teams fail without SIEM? Discover the real answer that most security guides miss
What is SOC 2 Compliance?
SOC 2 focuses on how a company protects and manages customer data.
It is based on the Trust Services Criteria (TSC). Every company that wants SOC 2 must prove they protect their systems from hackers and unauthorised access, which is non-negotiable.
For Instance, a SaaS company stores customer data in the cloud, and clients want to know that their data is safe from breaches, leaks, or misuse.
SOC 2 proves the company has strong security controls in place to protect that data.
SOC 2 Type 2 confirms that these data protection controls are consistently working over several months, not just set up once and forgotten.
When Needs SOC 2 Compliance?
Choose SOC 2 for proving data trust via the Trust Services Criteria.
- Service organisations that store, process, or transmit customer data
- SaaS companies
- Cloud service providers
- Data hosting and data centre companies
- IT managed service providers
- Cybersecurity firms
- Healthcare and fintech platforms (non-financial reporting data)
- HR, CRM, ERP, and collaboration tools
- Any company whose customers trust with sensitive or private information
Ever felt stuck on what controls you actually need for SOC 2 Type 2? This breakdown reveals the checklist most teams miss
From Policy to Proof Manage Everything in One Place
Mitigata GRC streamlines compliance tasks so you save time, reduce errors, and focus on what really matters.
SOC 1 vs SOC 2: Side-by-Side Comparison
This table summarises the differences between SOC 1 and SOC 2 reports to help you make the best decision for your business.
| Aspect | SOC 1 | SOC 2 |
|---|---|---|
| Main Purpose | Focuses on financial reporting controls (ICFR) | Focuses on data security and trust (Security + optional Trust Services Criteria) |
| Audit Standard Used | AT-C 320 | AT-C 105 & 205 |
| What Is Tested | Controls that impact financial reporting accuracy | Controls that protect data (security, availability, confidentiality, etc.) |
| Best For | Payroll providers, billing platforms, fintech handling financial data | Cloud companies, SaaS platforms, data centers, retail tech |
| Who Reads the Report | Shared with financial auditors (restricted use) | Shared with customers and stakeholders (Type 2 is detailed) |
| Estimated Cost in India (2026) | ₹5–15 lakhs | ₹10–40 lakhs |
| Typical Timeline | 2–3 months | 3–12 months |
| Scope Overlap | Limited to financial controls only | Broader scope; can include financial controls if chosen |
Conclusion:
As 2026 cyber threats escalate, with India’s incidents hitting record highs, choosing between SOC 1 vs SOC 2 is your gateway to trusted partnerships and scalable growth in fintech, retail, and SaaS.
If your services directly affect a client’s financial statements, like payroll processing or payment systems, SOC 1 is essential.
If you store, process, or manage customer data, especially as a SaaS, cloud, or tech provider, SOC 2 is a better choice.
Ultimately, the right choice depends on what your business handles: financial data or customer data, or both.
If you’re planning for SOC 1 or SOC 2, Contact Mitigata, and we’ll help you get compliant faster at less than 30% of the market prices.
akshit k