Startup Compliance Checklist
Early-stage founders must navigate diverse filings immediately post-incorporation. Failure to file PAN, TAN, or register for PF/ESIC within timeline triggers penalties. This checklist itemizes compliance gates for the first 180 days.
Key Highlights covered:
- Vesting schedules: Allocating founder shares with four-year vesting reverse buybacks.
- DPIIT registration rules: Unlocking Startup India income tax exemptions.
- Statutory audits criteria: Thresholds for hiring independent auditors.
- MCA filing forms: Checklist for SPICe+ parameters, INC-20A commencement certificates.
What are the first-day statutory tasks after incorporation?
Within 30 days of incorporation, the startup must appoint its first Auditor under Section 139(6) of the Companies Act. It must also set up a corporate bank account, file for a commencement of business certificate (Form INC-20A) within 180 days, and secure local PAN/TAN details.
How to claim tax benefits under Startup India (DPIIT)?
Founders should apply for DPIIT recognition via the Startup India portal. Once recognized, startups can apply for Income Tax exemptions under Section 80-IAC (3-year tax holiday) and Section 56(2)(viib) (angel tax relief), subject to qualifying criteria on turnover and assets.
Frequently Asked Questions
Every company must file Form INC-20A for Commencement of Business within 180 days from its date of incorporation, before executing any commercial transactions or borrowing capital.
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This article is written and reviewed by practicing Chartered Accountants of DSS Corp Advisory in Chennai. Information is aligned with the latest Finance Act notifications.