The conceptualization of a new form of trade, microtrade, is visualized to hold great promise in economic development of the producers belonging to LDCs and developing countries. In order to meet the goal of poverty reduction at a sustainable pace, the institutional, financial and logistical mechanisms for facilitating microtrade both at the international and national level needs to be built in a manner which ensures maximum efficiency. The paper deals with two fundamental aspects of development of microtrade. First, it delineates different aspects which would provide a strong substratum to the proposed microtrade regime. It explores the legal and institutional framework required for conduct of microtrade, which can be structured under the existing WTO regime and proposes necessary amendments to the WTO regime. Second, the paper explores financial aspects of the proposed microtrade regime. A case study of operation of micro-credit in the Indian scenario is undertaken in order to highlight the problems which have recently emerged in the microfinance sector. The scale of these problems has led the Indian government to propose a bill, regulating microfinance in India. Cue from this experience needs to be taken in order to move towards a foolproof system of financing microtrade at the local level.