For a Startup registered as a private limited company in India, there are certain compliance requirements laid down by the Companies Act, 2013 and other regulatory bodies that need to followed and adhered to from time to time. Failure to adhere to such regulations would lead the startup to penalties that could severely damage your business and harm the reputation that you have worked so hard for. Keeping this in mind, we have curated an annual compliance checklist for startups in India.
In our previous blog post, we spoke about the Pre-Funding compliance requirements and due diligence that needs to be adhered to for Startups registered in India. Today we will be discussing the Post-Funding compliance checklist for Startups that includes the guidelines set by the Reserve Bank of India for startups raising funds from investors outside India.
Typically, most modern startups today seek some sort of funding after they’ve been set up. While we have huge respect for companies that bootstrap, raising funds from investors has become quite common these days and often a necessity as well. But in most cases, startup founders are so involved in the process of raising funds that they forget to look at the mandatory compliances and due-diligence processes that are involved before and after fundraising. Today we’ll take a look at the pre-funding compliance checklist for startups in India.