Successful startups are ones that are driven by passionate entrepreneurs who are focused on building unique solutions that deliver customer delight. While it is very important to have a strong focus on customers and the market, it is equally critical to have a good understanding of the basic laws, rules, and regulations that are applicable for the smooth running of the business.
It is important to analyze if you are compliant and are following certain laid-down protocols. It’s imperative to keep a close eye on the laws in the city or state you operate in, failing which you are likely to overlook compliance responsibilities and face damaging penalties and lawsuits that could severely impede the progress of your business entity.
1) MCA (Ministry Of Corporate Affairs)
Board Meetings
A company must hold at least four board meetings in a financial year with a maximum gap of 120 days. The due dates for the board meetings are:
First board meeting: April – June 2023
Second board meeting: July – September 2023
Third board meeting: October – December 2023
Fourth board meeting: January – March 2024
Disclosure of Interest
To be taken from all the directors and the same to be taken on record in the first Board meeting of the financial year. Every director must give his/ her Disclosure of interest to the company in form MBP-1 as prescribed under the Companies Act, 2013. This is a disclosure by the directors of his interest in other entities.
Due date – at the First Board Meeting: April – June 2023
Disclosure of Non- Disqualification
By Directors: Every Director of the Company is to submit the annual disclosure of non-disqualification in form DIR-8. It is a declaration that the Director was not disqualified to act as Director during the previous year.
Due Date – First Board Meeting: April – June 2023
Audited Financial statements
For the financial year ended on 31/03/2022 to be prepared and approved in the Board Meeting.
Due date – 30th September 2022
Holding Annual General Meeting
All companies hold their AGM once a year, within six months of the closure of the Accounting year.
Due date – 30th September 2023
Audited Financial Statements
To be filed online with MCA Portal, within 30 days from the date of AGM.
Due Date – 29th October 2023
Annual Return
To be filed online with MCA Portal, within 60 days from the date of AGM.
Due date – 28th November 2023
Report from Practicing Company Secretary
A Private Company having- a paid-up share capital of Rs. 10 Crore or more or a turnover of Rs. 50 crore or more shall obtain a certificate in form MGT-7 from a Company Secretary.
Due date – 28th November 2023
Form MSME-I
MSME Return (Half yearly) to be filed by Companies in respect of all outstanding dues of more than 45 days of Micro or Small Enterprises suppliers.
Due dates
Half Yearly return: April 2023 to September 2023 – by 31st October 2023
Half Yearly: October 2023 to March 2024 – by 30th April 2024
Form DPT-3
Information about deposits or outstanding loans or money other than deposits.
Due date – 30th June 2023
KYC of Directors
A web-based annual update of the KYC of directors is to be done on MCA Portal. For the first year, form DIR-3 KYC is to be filed. Verification is to be done online via OTPs received on the Mobile and Email of the director.
Due date – 30th September 2023
Form CSR-2
To be filed by the Companies covered under the CSR parameters.
Due date – 31st March 2024
Maintenance of Statutory Registers/ Documents
Companies to maintain Statutory Registers -. Viz. Register of Members, Register of Directors/KMP, Register of Loan, Contract, and Arrangement, Register of Related Party Transactions. Etc. Minute books for the Board meetings, the shareholders’ meetings, forms filed with ROC, Financial Statements, and Annual Reports- need to be maintained and updated regularly.
Apart from the above statutory compliances, a company must review the below activities at the close of the year:
Vendor’s contract- Review all the annual contracts with Vendors and check if renewal is to be done before the year’s end.
Employee/ consultants- Review all annual arrangements/ agreements with your employee consultants. Please check if any updates or renewal-due payments are to be made.
Insurance Premium renewal- In case your company has taken any D & O or Keyman Insurance Policy, please check the date for the annual Insurance Premium.
Review of employee and contractor information- Review your employee records, and update any change in their contact number, address, and other records.
Third-party/ creditor’s payouts- Please pay all your creditors as per the terms before the closure of the accounting year, so that they do not reflect in your balance sheet.
Debtor collection- Try to follow up and get the collection from your debtors, so as to reduce the debtor’s balance in your balance sheet.
2) GST (Goods and Services Tax)
Monthly GSTR-1
Form GSTR-1 is a monthly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services.
Due dates:
Taxpayers under QRMP scheme: 13th April 2023
Other taxpayers: 11th April 2023
Monthly GSTR-3B
The GSTR-3B is a consolidated summary return of inward and outward supplies.GSTR 3B shows supplies during the month together with GST paid, Input Tax Credit availed, and reverse charge purchases, etc.
Due date – 20th April 2023
Annual GST returns
GSTR-9 is an annual return to be filed by all registered taxpayers under GST. It is an annual compilation of outward supplies, inward supplies, tax liability, and input tax credits availed during a financial year.
Due dates:
GSTR-9 – (More than 2 Crore) – 31st December 2023
GSTR-9C – (More than 5 Crore) – 31st December 2023
3) TDS (Tax Deducted at Source)
Monthly Pay
In the case of TDS on salary, it relates to the tax deduction made by an employer on your salaried income. TDS on salary helps the government in collecting income tax accruing from an individual’s salary at the source.
Due date:
TDS Payment: (government deductors) – 7th April 2023
TDS Payment: (Other than government deductors) – 30th April 2023
Quarterly filing
TDS Return is a quarterly statement submitted by the deductor to the Income Tax Department. The statement shows a summary of all the entries for TDS collected by the deductor and the TDS paid by the deductor to the Income Tax Authority.
Due date:
1st Quarter: 1st April to 30th June – by 31st July 2022
2nd Quarter: 1st July to 30th September – by 31st October 2022
3rd Quarter: 1st October to 31st December – by 31st Jan 2023
4th Quarter: 1st January to 31st March – by 31st May 2023
4) IT (Income Tax)
Income tax return
Income Tax Return (ITR) is a form that a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s or company’s income and the taxes to be paid on it during the year.
Due date: 30th November 2023
Audit report
The person conducting a tax audit has to provide the findings in a report using specified ‘Audit Forms’ prescribed by the income tax department. Section 44AB prescribes Forms 3CA and 3CB. Along with these two forms, the auditor has to furnish a Form 3CD
Due date: 31st October 2023
5) PF (Provident Fund)
Monthly PF fund
Every government, private sector, and public sector entity has to get registered with the Provident Fund Department on having 20 or more employees within 30 days of crossing the limit. Both employer and employee then contribute to the fund on a monthly basis which is later used by the employee on retirement.
Due date: 15th April 2023
Annual PF return
Employers having PF registration are required to file an annual PF return each year on or before the 30th of April.
Due date: 30th April 2023
6) ESI (Employee State Insurance)
Monthly Payment
The Employee State Insurance (ESI) is a contributory fund that has contributions both from the employer and employee and enables Indian employees to take part in a self-financed, healthcare, insurance fund.
Due date: 15th April 2023
Half-yearly return
The ESI return filing has to be made twice every year which means on a half-yearly basis
Due dates:
1st April to 30th September – by 12th November 2023
1st October to 31st March – by 12th May 2024
7) PT (Professional Tax)
Profession tax is the tax levied and collected by the state governments in India. It is a direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor, etc. are required to pay this professional tax. Due dates for PT vary from state to state.
Startup India Scheme
I hope you are all well aware of the Startup India Scheme, if not then don’t worry cause we have you covered. Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive to the growth of startup businesses, drive sustainable economic growth and generate large-scale employment opportunities. The Government through this initiative aims to empower startups to grow through innovation and design.
For availing of various benefits under the Startup India scheme, an entity would be required to be recognized by DIPP as a startup by applying at https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html.
The benefits provided to recognized startups under the Startup India initiative are:
Self-Certification: Self-certify and comply with 3 Environmental & 6 Labour Laws
Tax Exemption: Income Tax exemption for a period of 3 consecutive years and exemption on capital and investments above Fair Market Value
Easy Winding of Company: In 90 days under the Insolvency & Bankruptcy Code, 2016
Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in filing patents
Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover, and experience requirements in government tenders
SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds