Startup Compliance Checklist: What Founders Must Get Right in Year One

The first year of a startup is usually a blur of product, hiring, and fundraising — and compliance quietly waits in the background until it doesn't. Missing a registration or a filing early on is cheap to fix; ignoring it until your first term sheet is expensive. This checklist sequences what to handle, and roughly when.

Day 0–30: Incorporation done right

• Choose the right structure. A private limited company is the default for venture-funded startups; an LLP suits professional services and avoids angel-tax friction.
• Incorporate with founders' agreement basics. A Founders' Agreement covering roles, vesting, and IP assignment should precede or accompany incorporation.
• Obtain PAN, TAN, and the incorporation certificate (PAN and TAN are now issued automatically with the SPICe+ form).

Month 1–2: The essential registrations

• GST registration if you cross the turnover threshold or operate inter-state — most SaaS and e-commerce startups must register immediately.
• Shops & Establishment licence from your state labour department.
• Professional tax registration (applicable in most states).
• Bank account — open a current account using the certificate and PAN; this becomes your primary account for all investor inflows.

Month 2–3: Foundational governance

• Commence a cap table — even a simple one — and keep it updated from day one.
• File the first board resolutions for appointment of auditor, statutory auditors, and bank signatories.
• Draft standard contracts — employment offer letters, NDA, and IP assignment — so every hire is compliant from their start date.

Before the first fundraise: investor-readiness

When a term sheet arrives, your compliance history is the first thing under the microscope. Get these clean before diligence:

• Up-to-date ROC filings (AOC-4, MGT-7) for all financial years since incorporation.
• FEMA filings (FCGPR/FCTRS) if any foreign money has come in.
• Cap table reconciliation — every share issuance documented and matched to filings.
• Statutory registers and minutes up to date.
• ESOP plan drafted and adopted if you plan to grant options.

Ongoing: the compliance calendar

The single biggest mistake founders make is treating compliance as a one-time task. In reality, there are recurring obligations every month (GST, TDS), quarter (TDS returns), and year (ROC, income tax). Maintaining a compliance calendar — ideally managed by a partner — is what keeps a small problem from becoming a deal-breaker.

How Regusnap helps

Our startup package covers everything above on a predictable retainer: a dedicated advisor, a live compliance calendar, and investor-readiness support timed to your raise. Talk to us before your next round.