Why Startup Compliance is Not Generic Compliance
The regulatory environment for DPIIT-recognised startups is materially different from standard companies. There are significant tax benefits available — Section 80-IAC exemption, angel tax protection, ESOP deferral — that require specific filings and structuring to unlock.
A missed DPIIT filing or incorrect ESOP structure can cost founders crores in avoidable tax. Getting it right from day one is worth the investment.
DPIIT Recognition
We manage the entire DPIIT recognition application — eligibility assessment, documentation preparation, and follow-up. Recognition opens access to angel tax exemption, faster IP applications, and government tender preferences.
ESOP Structuring
Employee Stock Option Plans require careful drafting to achieve the intended tax outcome. Key decisions — exercise price, vesting schedule, cash settlement vs equity — have significant tax consequences for both the company and employees.
Angel Tax Protection (Section 56)
Section 56(2)(viib) can impose income tax on funding rounds where the valuation exceeds fair market value. We assist with Form 2 filings for DPIIT-recognised companies, DCF valuations, and documentation to support your valuation position.
| Compliance Item | Due Date | Filing |
|---|---|---|
| Annual Return | 60 days from AGM | Form MGT-7 |
| Financial Statements | 30 days from AGM | Form AOC-4 |
| Income Tax Return | 31 October | ITR-6 |
| Tax Audit Report | 30 September | Form 3CA/3CB |