Startup Compliance Checklist for New Entrepreneurs

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Startup Compliance Checklist for New Entrepreneurs

Starting a business is an exciting journey, but along with innovation and growth, compliance plays a critical role in ensuring smooth operations and long-term success. For new entrepreneurs, overlooking compliance can lead to penalties, legal issues, and reputational damage. To help you stay ahead, here’s a Startup Compliance Checklist you must follow:

1. Business Registration

  • Choose the right structure: Proprietorship, Partnership, LLP, or Private Limited Company.

  • Register with the Ministry of Corporate Affairs (MCA) or other relevant authorities.

  • Obtain incorporation documents (CIN, PAN, TAN, etc.).

2. Tax Registrations

  • PAN & TAN: Essential for income tax and TDS compliance.

  • GST Registration: Mandatory if turnover exceeds prescribed limits or if you are engaged in interstate supply/e-commerce.

  • Professional Tax: Required in some states.

3. Intellectual Property Protection

  • Register your trademark, logo, or brand name to safeguard your identity.

  • Consider patents and copyrights if your business involves innovation or creative work.

4. Labour & Employment Laws

  • Draft clear employment contracts.

  • Register for EPF, ESIC, Shops & Establishment Act (if applicable).

  • Ensure compliance with minimum wages, gratuity, and leave policies.

5. Accounting & Bookkeeping

  • Maintain accurate books of accounts as per the Companies Act/Income Tax Act.

  • File GST returns, TDS returns, and annual income tax returns on time.

  • Conduct internal audits to strengthen financial discipline.

6. Statutory Filings

  • For companies/LLPs: File annual returns and financial statements with MCA.

  • Keep track of due dates for ROC filings, board meetings, and statutory registers.

7. Funding & Investor Compliance

  • Maintain proper shareholding records and agreements.

  • Follow FEMA and RBI rules for foreign investments.

  • Disclose information transparently to investors.

8. Other Key Registrations

  • Import Export Code (IEC) for businesses engaged in international trade.

  • FSSAI license for food businesses.

  • Sector-specific licenses depending on industry.

9. Data Protection & Privacy

  • Draft privacy policies and terms of use if operating online.

  • Ensure compliance with data protection laws while handling customer data.

10. Regular Compliance Reviews

  • Conduct periodic reviews with a Chartered Accountant or Compliance Expert.

  • Stay updated with amendments in laws and regulations.

Final Thoughts

Compliance may seem complex, but building a strong foundation from the beginning saves you from costly errors later. A proactive approach not only ensures legal security but also builds trust with investors, employees, and customers.

At M A Ashraf & Co., Chartered Accountants, we help startups set up and stay compliant with all regulatory requirements. From incorporation to taxation and ongoing compliance, we act as your trusted advisors in the growth journey.

✨ Stay compliant, grow confidently!

M A Ashraf & Co. – Chartered Accountants
Specialising in GST, Income Tax, and Startup Advisory
📍 Serving PAN India | 💼 camdayazashraf.blogspot.com

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