For an entrepreneur to pivot their business models and explore untapped opportunities, funding becomes the inevitable step. Apart from choosing the right entity for registering your startup business and going through the cumbersome process of following the various regulatory compliance’s, getting your startup funded is an important aspect that needs significant time and effort.
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.
Previously, we spoke about the various Anti-Profiteering rules under GST Law. Today we will be talking about the ways of filing an appeal under GST regime.
Laws, in general, impose two kinds of obligations. The first obligation is related to tax and the second obligation is related to the procedure. Any registered taxpayer’s compliance with these two types of obligation is put to check by the various officers of the law.
Sometimes this entire process might lead to certain situations of non-compliance which further leads to a dispute between the taxpayer and the concerned tax officer. To put these disputes in check, there are appeal mechanisms set in place.
The Ministry of Corporate Affairs in its continuous effort to boost the startup ecosystem has made some operational and compliance relaxations for Startups, Section 8 Companies and Government Companies.
In its notification dated 13th June 2017, the MCA has made some amends to its initial notification under G.S.R. 464(E) dated the 5th June 2015 published in the Gazette of India, Extraordinary, Part-ll, Section 3, Subsection (i).
Any LLP (Limited Liability Partnership) registered in India needs to be compliant under the rules and regulations as laid down by the Ministry of Corporate Affairs. Irrespective of whether it has done any business or not, in every financial year an LLP is required to file Annual Returns and Statement of Accounts.
In their continuous efforts of improving the business environment of the country, the government of India has taken necessary steps to ease the nature of doing business. The Government has been keenly observing the initiatives and benchmarks set by the ‘Doing Business Project of the World Bank.’
Launched in 2002, the Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level.It looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.
Any private limited company registered in India and successfully operating their business needs to follow the various compliances laid down by the Companies Act, 2013. Failure to adhere to these ROC compliances and regulations would lead to lawsuits and penalties that could severely damage your business and harm the brand that you have worked so hard for.
Following the various ROC Compliances not only makes you a legal entity as per the government norms but also makes you trustworthy for your investors, shareholders, and customers. Read more