Annual compliance checklist for startups
Sticking to the Compliance that are setup by government is very essential Business requirement that will help in ensuring that the business stays in existence for a longer period of time. For a Startup Following and keeping up with all The Compliance is Very Necessary as it will help in Getting Funding from government, Startup can apply for government tenders, will avoid Being marked as a Dormant company and Will Also Avoid Being shut down Or Closed down.
So In this Article We will give you an Annual Compliance Checklist for Startups that will help in Taking care of The Annual Compliance that are required to Be Fulfilled by you as a startup.
Annual compliance checklist for startups
1). Income tax filing
The First Annual Compliance on our list of Compliances for Startups is Income Tax Filling. The Financial Year in India is from 1st April to 31st March and when this Financial Year ends every Company and Individuals who according to Income Tax Slab of The Particular year are required to pay Income tax has to file an Income Tax return. For Startup Company it is Mandatory to File for Income Tax even if They Do Not makes any Profit for the financial year. So you must keep in Mind that as soon as financial year ends you need to gather all The Bills, voucher and other documents that depict financial transaction and Contact a Ca, Cs and Icwa Firm to Make financial Statement, prepare income tax return and Filing Income Tax Return.
If You Forget To File Income tax return, You May have to pay a high Nonfiling or Late filing fees or If You delay too much A Legal action can be taken on Your Startup Company.
2) GST return filing
Every Company or Individual who is Selling Goods and Services in India has to Mandatorily get GST registration and File Gst returns Even If they Do Not make Any sale In The Month or year. If your startup is selling goods and Services in India, then you should make sure that you acquire a Gst Registration or if You already have GST Registration then you must file Gst return On Monthly and annually basis.
3) Renewal of licenses
When anybody starts a business In India, they are required to obtain License Within 3o days of commencing a business. The Licenses That are required by All the Startups are Shop and Establishment Act License or Gumasta License in case your Business is in Maharashtra or Gujarat, 0046ssai License of you are in Food business, Trade License, Import, and export code if Your startup is in and other Business specific License.
If you Have not acquired a business license then you must first get all the required Business licenses and if You have Acquired business license then you must either renew it Annually or as per The license expiry date or required by the License authority.
4) Business Equipment Compliance
If you’re Startup Is Food Business, Medical business, Transport Business, construction business or any Other Business, if you are using any equipment Then It is your duty to check and Maintain Monthly, quarterly or annually to make sure The Equipment is in Proper condition and in some Business It is mandatory to check and maintain Equipment.
5) Internal company compliance
You need to Carry out Monthly and Annual Audit of your Financial Statement, You need to Hold Annual General Meeting, Carry out business analysis and Discuss Findings of analysis with coco, cf, Director, managers and Company staff etc, Update and Check Company policies and Procedures, Follow-up and stay Updated About any changes in law and compliance related to Business and Always Keep your Cybersecurity Updated and always pay attention to Data protection laws. So this is the part of the Annual Compliance for a Private Limited Company.
Hope this guide is really helpful for the Indian Startups. if you have any query then you can mention in the comments on YourStory.
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