Meta description: Startup compliance checklist India 2026 for founders: incorporation, ROC, GST, payroll, labour-law and licence actions arranged by business trigger.

A new company can face a ₹50,000 penalty before its first real sale if it starts business without filing the commencement declaration required by section 10A of the Companies Act, 2013. This startup compliance checklist India 2026 turns the legal maze into decisions a founder can assign, schedule and prove.

The checklist is primarily for Indian private limited companies and highlights where a limited liability partnership, or LLP, follows a different route. It reflects central law checked on 13 September 2026. State Shops and Establishments laws, professional tax, labour welfare funds, municipal licences and industry approvals still vary by location, so a Bengaluru software startup and a Pune food manufacturer should not share the same calendar.

What changed for startup compliance in India in 2026?

Three changes matter before you copy last year's spreadsheet.

First, the four central labour codes took effect on 21 November 2025. The Ministry of Labour and Employment says old rules continue during the transition only to the extent that they are consistent with the codes. Its 2026 employer handbook also warns that a central rule does not automatically answer a state-sphere establishment's question.

Second, the Income-tax Act, 2025 applies from 1 April 2026. Salary TDS now sits in section 392 and most non-salary withholding in section 393. The Income Tax Department's transition FAQ says the broad payment framework remains, but software and returns must use the new provision for a payment or credit whose earlier event occurs on or after 1 April 2026.

Third, an upload, a generated challan and a cleared payment are different states. Record the acknowledgement and bank debit, not a screenshot of a form waiting in a consultant's queue.

Which actions belong in the first 180 days?

Do these immediately after incorporation. They establish whether the company can legally operate and whether later filings will reconcile.

  1. Open the bank account and collect subscribed capital. For a company incorporated with share capital, each subscriber must pay for the shares agreed in the memorandum.
  2. File INC-20A within 180 days. Section 10A of the Companies Act, 2013 prevents the company from commencing business or borrowing until a director declares that subscribers have paid for their shares and the registered office has been verified. Default attracts a ₹50,000 penalty on the company and ₹1,000 per day on every officer in default, capped at ₹1 lakh per officer.
  3. Hold the first board meeting within 30 days. Section 173 requires the first meeting within 30 days of incorporation. A normal company then holds at least four board meetings each year with no more than 120 days between consecutive meetings. An OPC, small company or dormant company can use the reduced rule: at least one meeting in each half of the calendar year, with at least 90 days between them.
  4. Appoint the first auditor. Under section 139(6), the board should appoint the first auditor of a non-government company within 30 days of registration. If the board fails, members must appoint one at an extraordinary general meeting within the following 90 days.
  5. Issue share certificates and complete statutory registers. Record members, directors, allotments, beneficial interests and board decisions.
  6. Put legal identity on business communications. Section 12 requires the company's name and registered-office address outside its offices and its name, address, Corporate Identity Number, telephone number, email and website, if any, on business letters and official publications.
  7. Map licences before the first regulated sale. GST, FSSAI, import-export, pollution-control, fire, Legal Metrology and local trade permissions depend on what you sell, where you operate and how you deliver it. Incorporation is not an operating licence.

An LLP does not file INC-20A or hold Companies Act board meetings. Its recurring MCA spine normally includes Form 11, the annual return, and Form 8, the statement of account and solvency. Keep a separate entity-specific checklist.

What must happen every month, quarter and year?

The founder does not need to prepare every return. The founder does need one named owner, one due date and one proof location for each obligation.

Monthly payroll and tax controls

Under sections 16 and 17 of the Code on Wages, 2019, a monthly wage period must be paid before the end of the seventh day of the following month. Final wages after resignation, dismissal, retrenchment or closure are due within two working days. Section 18 caps authorised deductions at 50% of wages.

For salary paid from 1 April 2026, calculate TDS under section 392 of the Income-tax Act, 2025. For contractor, rent, professional-fee and other covered payments, check the correct row under section 393. The normal deposit deadline remains the 7th of the following month; March deductions by a non-government deductor are normally due on 30 April. Preserve the calculation, challan and return acknowledgement.

If provident-fund or ESI coverage applies, reconcile the employee list to payroll before paying. Under the First Schedule to the Code on Social Security, 2020, EPF applies to establishments with 20 or more employees. ESI applies to establishments with 10 or more persons, other than seasonal factories, and can apply to a hazardous or life-threatening activity even with one employee. The Ministry's March 2026 FAQ confirms that the existing ₹21,000 monthly wage ceiling continues for ESI coverage until replaced by notification.

GST controls

Section 22 of the Central Goods and Services Tax Act, 2017 generally uses an aggregate-turnover threshold of ₹20 lakh, reduced to ₹10 lakh in specified special-category states. Notifications permit a threshold up to ₹40 lakh for qualifying suppliers engaged exclusively in goods in participating states. Section 24 can require registration regardless of turnover in specified cases. That is why “we are under ₹40 lakh” is not a conclusion; it is the start of the test.

Once registered, run a monthly GST close even if the return is quarterly. Reconcile sales, credit notes, e-invoices where applicable, purchase credits and electronic ledgers. Record your applicable GSTR-1 and GSTR-3B dates instead of copying a generic calendar.

Annual company-law controls

For a company using a 31 March financial year, work backwards from the annual general meeting, or AGM:

The exact calendar changes when the financial year, AGM date, entity status or filing extension changes. Use the event to calculate the deadline; never hard-code 30 September, 30 October or 29 November as universal AOC-4 and MGT-7 dates.

Which hiring triggers create labour-law duties?

Headcount changes the legal map. Review coverage before making an offer that crosses a threshold, not after the first complaint.

At the first employee

Issue a written appointment letter. Section 6 of the Occupational Safety, Health and Working Conditions Code, 2020 requires appointment letters in the prescribed form, and the Ministry's employer handbook treats this as a foundational duty. Also document working hours, wage period, leave, confidentiality, intellectual-property assignment, disciplinary process and exit terms.

Minimum wages now apply across employments under section 5 of the Code on Wages, 2019. Compare the employee's role, skill category and location with the current central or state notification. Section 3 prohibits gender discrimination in wages for the same or similar work.

At 10 employees

Section 4 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 requires an Internal Committee at each office or administrative unit. It needs a senior woman Presiding Officer, at least two employee members, one qualified external member and at least half women members. Sections 21 and 22 require annual reporting and employer disclosure.

Ten people can also trigger ESI and establishment registration under the Social Security and OSH codes, subject to their coverage provisions and the appropriate government's rules. Do not assume that interns, fixed-term staff or contractor-supplied workers disappear from every count; each statute defines its own denominator.

At 20 employees

EPF coverage ordinarily begins. Section 4 of the Industrial Relations Code, 2020 also requires an industrial establishment with 20 or more workers to create one or more Grievance Redressal Committees. Employer and worker representation must be equal, total membership cannot exceed ten, and women must be represented at least in proportion to their share of the workforce. The committee should complete proceedings within 30 days of receiving an application.

At larger industrial thresholds

The Industrial Relations Code applies standing-order provisions at 300 or more workers. Factories, mines and plantations at that level need prior government permission before lay-off, retrenchment or closure; retrenchment also brings notice, compensation and re-skilling-fund duties.

The OSH Code creates separate sector thresholds. For example, contract-labour provisions apply where 50 or more contract workers were employed on a day in the preceding 12 months, and a contractor employing 50 or more contract workers needs a licence. These are worker counts, not payroll-software subscription tiers.

Which business-model triggers need a licence or policy?

A useful startup compliance checklist follows activity, not just the calendar.

How should a founder run this checklist without becoming a lawyer?

Build one obligation register with: entity, establishment, state, activity, threshold, law and section, action, due-date rule, owner, reviewer, portal, evidence link and last-checked date.

Then run a short control cycle:

  1. On every trigger: review a new state, product, premises, employee band, funding round or foreign payment before execution.
  2. Weekly: clear portal errors, notices and tasks due in the next 30 days.
  3. Monthly: reconcile payroll, TDS, GST and social-security filings to bank payments.
  4. Quarterly: sample evidence, contractor compliance, licences and policy implementation.
  5. Annually: rebuild applicability from the current business profile instead of rolling last year's spreadsheet forward.

Store proof by obligation and period. “GST done” is useless during diligence; retain the acknowledgement, payment challan, reconciliation and review. Give the dashboard three states: due, filed but unpaid, and complete with evidence.

This is also where software should earn its keep. A generic calendar tells every startup the same dates. A useful system asks where you operate, what you sell, your entity type and headcount, then adds the obligations that actually apply and flags regulatory changes against that profile.

Frequently asked questions

Does Startup India recognition reduce normal compliance?

No. Recognition can provide specified benefits, but it does not cancel Companies Act, GST, income-tax, labour, data-protection or sector-licensing duties. Test each claimed exemption against its own notification and conditions.

Is a private limited company compliant once a CA files its taxes?

No. Tax is one stream. ROC filings, board records, employment duties, state registrations, licences, contracts and operational evidence have different owners and deadlines. The directors remain responsible even when a consultant prepares a form.

Does a pre-revenue startup need GST registration?

Not automatically. Apply sections 22 and 24 of the CGST Act to aggregate turnover, state, supply type and compulsory-registration categories. Voluntary registration also creates ongoing return and tax obligations.

When does POSH compliance start?

The Internal Committee requirement applies at a workplace with ten or more employees. Smaller workplaces are not free to ignore harassment complaints; the Act provides a Local Committee route, and employers still have prevention and assistance duties.

Are remote employees counted only at headquarters?

Do not assume so. Payroll and social-security coverage can attach at establishment level, while Shops and Establishments, professional tax and labour welfare requirements vary by the employee's work state and local law. Map each work location explicitly.

What is the most commonly missed first-year filing?

INC-20A is a dangerous miss for companies with share capital because the 180-day deadline arrives before the annual filing season. First-board-meeting records, auditor appointment and share certificates are also frequently left for year-end reconstruction.

Can founders use one national compliance calendar?

Use one control system, not one undifferentiated list. Attach state and municipal requirements to each establishment and activity.

Turn the startup compliance checklist into your own timeline

The startup compliance checklist India 2026 is not a static set of 20 dates. It changes when you hire employee number 10 or 20, open in a new state, launch a food product, accept foreign investment or move from a desk to a factory.

Do the basic controls now: confirm INC-20A and first-board actions, map recurring ROC and tax filings, test employee thresholds, list activity licences, assign owners and store proof. Then check your compliance posture free at complianceradar.in. Describe your business once to get a personalised timeline of applicable obligations, relevant government schemes and alerts when the rules affecting your profile change.

This guide is general information, not legal or tax advice. Verify the latest central, state and local notifications for your facts before acting.