Roadmap for Indian startups-Registration to Taxation

Roadmap for Indian Startups

A recent Unicorn graph of India says that India will give birth to 250+ unicorns by 2025

That’s what caught my eye while I was scrolling around economic news. It also says that startups may have a valuation of around 1 billion.  I was delighted to see the acceleration in India’s startup revolution. Although this is just an estimation as per the researchers. I strongly hope this to be a reality by 2025 and would like to help our founder mates with a Registration to Taxation roadmap for their startup. 

This roadmap for Indian Startups from registration to taxation will be a support to founders when it comes to dealing with Incorporation, managing compliance, and Income tax for their startups. It is a step by step to do things that are required to abide by when a founder is operating a startup in India. It is a handy article a founder can have as it states the steps in sequence with its applicability.

Roadmaps for Indian Startups!

Let’s deep dive into the steps-

Business Incorporation

The process of incorporation involves writing up a document known as the articles of incorporation and enumerating the firm’s shareholders. This document formally establishes the business and allows it to operate as a legal entity. 

Depending on factors like cost of formation, cost of compliance, the effect of taxation, funding requirement, number of promoters, business activity, etc, the first question that needs to be resolved is What type of entity to be formed? 

E.g. Proprietorship, Partnership, LLP, Private Limited, etc.

Other Statutory Registrations

Once the business incorporation is done, the next step is to obtain all the mandatory and necessary registration under different statutes and laws. These registrations depend on one’s business activity. 

E.g. FDA for Drugs related business, FSSAI for Food and related products, Udyog Aadhar, Import Export Code, GST, etc.

Compliance Management

It is important to comply with the applicable tax and statutory laws so that the system works fairly for everyone. One way to encourage compliance is to keep the rules as clear and simple as possible.

The major objective after registering under various statutes is to regularly comply with the various filings to be done under those statutes. One should make a note of all applicable due dates and regularly monitor the same by self or through his or her team.

Book Keeping and Data Keeping of Transactions

Accounts recording and data keeping is a very important aspects from a Management as well as Compliance point of view. A robust and efficient process system of maintaining all the transaction records and data accounting will ensure the management is in control of the operations of the company.

Review Mechanism

A review mechanism is a structured and ongoing process of review to see how conventions and protocols are being put into practice.

A timely and periodic review mechanism is very essential to identify any lacunas or gaps in various processes of the company. E.g. Internal Audit, MIS reporting. Such a mechanism can be done by having an in-house reporting system or taking the help of the right consultants. I am focusing on the right consultants because this is the important task wherein a founder can come to know about his organization’s shortfalls or scope of improvement overall.

Annual Closing

Annual closing of books, determining business results, completion of statutory audits, filing of taxes, and other statutory annual reports are the ultimate reporting that is to be done at the end of every annual year. Provided the business has diligently implemented point no. 3 to 5 above, point no. 6 is a no-brainer for any business.

To conclude this roadmap for India startups article I would say founders must get the liberty to just focus on their product and its growth, and assign the right tax consultant to do the rest. Because the right and enthusiastic professional can help you at every stage of your business by keeping your vision in mind. Kindly write in the comment box if there are any questions and I will be happy to answer. Also to know more about the Indian Unicorn projection by 2025 as said at the start of the blog, you can click here.



He is one of our strong members of the advisor panel of Whitespace consultancy. Ketan is CA, CS and DISA certified. He has more than 10 years of experience in the field of Finance, Accounts & Tax. His expertise is in financial analysis, preparing business plans & taxation. He is of the belief that startups need the right business consultants for their growth. One who not only follows and initiates business compliances but also gives the right advice to strengthen the business.

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