Startup Compliance Checklist: First Year Essentials

Month 0: Incorporation

Entity Registration - [ ] Obtain Digital Signature Certificate (DSC) for directors - [ ] Apply for Director Identification Number (DIN) - [ ] File SPICe+ form for company incorporation - [ ] Receive Certificate of Incorporation (CIN) - [ ] Apply for PAN and TAN - [ ] Open current bank account

Immediate Post-Incorporation - [ ] Appoint first auditor within 30 days - [ ] Issue share certificates to subscribers - [ ] File INC-20 for declaration of commencement of business - [ ] Deposit share capital in bank account

Month 1-3: Tax Registrations

GST Registration (if applicable or voluntary)

Professional Tax Registration (state-specific)

Shops & Establishment Registration

MSME Registration (Udyam) for benefits

EPF/ESI Registration (if employees > threshold)

Month 3-6: Operational Compliance

Implement accounting system (Tally, Zoho Books, or QuickBooks)

Set up invoicing system with GST compliance

Establish expense reimbursement policy

Create payroll structure with tax optimization

Obtain IEC (Import Export Code) if international business

Ongoing Monthly/Quarterly

GST Returns (GSTR-1, GSTR-3B)

TDS Returns (24Q, 26Q)

TDS Payment by 7th of next month

Professional Tax Payment (monthly/quarterly as applicable)

EPF/ESI Contributions and Returns

Annual Compliance

Statutory Audit (if applicable)

Income Tax Return (ITR-6 for companies)

GST Annual Return (GSTR-9)

GST Reconciliation Statement (GSTR-9C if applicable)

DIR-3 KYC for all directors

Annual Return (MGT-7)

Financial Statements (AOC-4)

Board Meetings (minimum 4 per year, one per quarter)

AGM within 6 months of financial year end

Key Compliance Dates

Compliance	Due Date
TDS Payment	7th of next month
GSTR-1 (Monthly)	11th of next month
GSTR-3B (Monthly)	20th of next month
Advance Tax (Q1)	15th June
Advance Tax (Q2)	15th September
Advance Tax (Q3)	15th December
Advance Tax (Q4)	15th March
ITR Filing	31st October (Audited)
GST Annual Return	31st December

Common First-Year Mistakes

1. Mixing personal and business expenses – Always maintain separate accounts 2. Missing GST registration threshold – Track turnover monthly 3. Incorrect TDS deduction – Understand TDS applicability on all payments 4. Delayed ROC filings – Late fees accumulate rapidly (₹100/day) 5. No written agreements – Document all founder and vendor relationships

Recommended Tools

Accounting: Tally Prime, Zoho Books, QuickBooks

GST Compliance: ClearTax, GST Hero

Payroll: RazorpayX Payroll, GreytHR

Legal Compliance: Vakilsearch, LegalRaasta

When to Hire a CA

Engage a Chartered Accountant from day one if: - You have multiple founders (equity structuring) - You plan to raise funding (investor-ready financials) - Your business model involves complex GST (e-commerce, SaaS) - You have international transactions (transfer pricing) - You want to claim startup tax benefits (Section 80-IAC)

The cost of professional advisory in the first year is far less than the cost of compliance mistakes.

Startup Compliance Checklist: First Year Essentials