Checklist of annual compliances for startups

Are you going to start your startup? Or are you concern about the legal activities to comply with it? Then do not panic about it. we are here to help you with all required compliances, which will proceed with your business with a sustainable flow.

When you start a business or startup, then it takes all your efforts. But if you do not go through its required government compliances, then all your efforts seem to be a waste. So it would help if you abide by all necessary laws, which will create a hassle-free path for you.

Following are some laws which you need to comply with your startup

1- Labor and mercantile laws
2- Companies Act
3- Goods and Services Act (GST)
4-Income Tax Act

Once your startup is registered as an Indian company, your company must abide by all laws as per Companies Act, 2013.

There are major things which you cannot miss for the package of annual compliances.

Following are certain major things which we cannot avoid as the startup

1- Accounts filing with ROC (Form AOC-04)
2- Statutory Audit
3- Board meetings
4- Annual Returns with ROC (Form MGT-07)
5- Annual General Meeting (AGM)

All those points, as mentioned earlier, are some major compliances for a startup that a startup needs to follow. But rather than those mentioned compliances, many other compliances can vary from cases to cases. Suppose you take a loan from a bank. Then, in that case, you need to file CHG-01 with ROC for registration. If you lately filed a statutory, then you will be penalized.

For any type of turnover company, they must complete the audit process by CA.

Whether there is any financial transaction done within a year or not, a company needs to do every auditing process.

Checklist ofstartup for income tax Act compliance

It is mandatory to file income tax for the company if it is incorporated as a Proprietor Company or Limited Liability Company. Suppose your taxable income is exceeded than exemption limit. Then within a certain period, you need to complete your filling process. In case you filled late, then you may charge a fee.

Checklist of startup for GST compliance

Now GST is much more convenient because its a combined or total tax. If your yearly turnover is more than 20 Lakhs, you need to register under GST (goods andamp; service tax). Also, there is another case where you need to register for GST compliance, such as when you belong to a special state, in case of turnover is exceed than 10 Lakhs, online seller, etc.

In case of a nutshell, below-written startup compliances for GST are mandatory

1- When yearly turnover exceeds Rs. 5 Crores, then yearly GST is required.
2- In case you crossed a turnover of 20/40 Lakhs, then you need a GST registration.
3- If turnover crosses 1.5 Crores, then you need to pay monthly returns otherwise quarterly returns.
4- Annual returns
5- If goods transportation invoice exceeds Rs 50 thousand, then an EWAY bill required.

For compliance with Labor laws startup checklist

Following are three major laws that apply to a company based on its number of employees working.

Provident fund (PF)

When there is a minimum of 20 people are working under you, then in that case, a provident fund is applicable, and you need to do registration under PF. Also, a return filled is necessary. Every month, some amount is deducted from every employee fund, and those amounts will be paid to government. PF is coming under significant labor law, so companies should fill it.


In India, ESI (Employee State Insurance) is a scheme for health and social security. It is coming under ESI Act 1948. If we talk about this fund management, then it is managed by State Insurance Corporation. This ESI Act is also working similar to PF.

Profession tax

In India, profession tax is collected by state government, and it is a form of indirect tax. For some particular states, its compulsory for them, such as Karnataka.When you are paying salaries of more than 15,000, then every month, 200 Rs are deduced and paid to government.

It is essential to follow some laws like company compliance, startup compliance, annual compliance, etc. which will allow you to run a sustainable business without any legal obstacles. It will also save you from unwanted penalties and government punishment.

Chakdebiz is a best business management consultant situated in Delhi. It provides various services such as startup compliance, company compliance package, proprietorship firm registration, etc. Along with that, Chakdebiz provides best practices that are applicable for tax administration, GST compliance process management, compliance packages for Pvt. Ltd. Companies. It will help a business to comply with all required compliances towards sustainability and expansion.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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