Starting a new business in India is exciting — but to run smoothly and legally, every startup must follow essential compliance requirements. These compliances not only protect your business but also help build trust with customers, investors, and government authorities. Here’s a complete checklist to ensure your startup is fully compliant from day one.
1. Choose the Right Business Structure
Your first step is deciding the legal structure of your business. Common options include:
Sole Proprietorship
Partnership Firm
LLP (Limited Liability Partnership)
Private Limited Company
One Person Company (OPC)
Each structure has different compliance requirements, tax rules, and liability responsibilities. Choose the one that suits your long-term goals.
2. Company Registration
Register your company with the Ministry of Corporate Affairs (MCA):
Apply for DSC (Digital Signature Certificate)
Apply for DIN (Director Identification Number)
File for Company Name Reservation
Submit Incorporation Documents
Obtain Certificate of Incorporation (COI)
This legally establishes your business entity.
3. PAN & TAN Registration
Every business must obtain:
PAN (Permanent Account Number) – for all tax-related activities.
TAN (Tax Deduction and Collection Account Number) – mandatory if your company deducts TDS.
4. GST Registration
GST registration is mandatory if:
Your annual turnover exceeds the prescribed limit, OR
You engage in interstate supply, online sales, import/export, or certain services.
After registration:
File monthly/quarterly GST returns
Maintain invoices & records
Stay GST compliant at all times
5. MSME/Udyam Registration
For startups and small businesses, Udyam Registration provides:
Subsidies
Collateral-free loans
Government tender benefits
Lower interest rates
Highly recommended for early-stage startups.
6. Bank Account Opening
Open a dedicated current account for all business transactions.
This keeps your finances transparent and helps maintain proper accounting records.
7. Accounting & Bookkeeping Compliance
Startups must maintain:
Daily bookkeeping records
P&L statements
Balance sheets
Expense tracking
Invoice management
Vendor/customer ledgers
Professional accounting helps avoid penalties and ensures smooth audits.
8. Income Tax Compliance
Startups must:
File ITR annually
Deduct and deposit TDS
Maintain tax records
Claim eligible startup exemptions (Section 80-IAC) if applicable
Timely compliance ensures smooth financial operations.
9. Annual ROC Compliance (For Companies & LLPs)
Every registered Company/LLP must file:
AOC-4 (Financial Statement)
MGT-7 (Annual Return)
ADT-1 (Auditor appointment)
Form 11 & Form 8 for LLPs
Failure leads to late fees and penalties.
10. Trademark Registration
Protect your brand name, logo, tagline, or product names with a Trademark.
This gives you legal rights and prevents others from copying your brand identity.
11. Labour Law Compliance
Depending on your business size, you may need:
Professional Tax Registration
EPFO Registration
ESIC Registration
Shops & Establishment License
These ensure proper employee welfare and legal functioning.
12. Industry-Specific Licenses
Startups in special sectors may require:
FSSAI license (Food businesses)
Import Export Code (IEC) for export/import
ISO Certification (optional but beneficial)
Trade License from local authorities
13. Data Protection & Privacy Policies
For online businesses:
Create Privacy Policy
Draft Terms & Conditions
Ensure user data protection
Comply with IT Act & digital regulations
14. Website & Digital Compliance
If your business runs online:
GST-compliant invoices
Website disclaimers
Payment gateway compliance
Mobile app compliance
15. CSR, NGO, or Social Sector Compliances (If Applicable)
If your startup works in the social sector:
NGO Darpan Registration
12A & 80G Registration
CSR Registration
Conclusion
Starting a business is easy — but staying compliant is what ensures long-term success. A well-managed compliance structure builds credibility, avoids penalties, and keeps your business ready for growth.
If you need help with registration, GST, ITR, compliance, or license services, Contact BusinessRights is here to support you with end-to-end solutions.