Once your company exists, two things unlock benefits and keep you out of trouble: DPIIT recognition under the Startup India programme, and a compliance calendar.
DPIIT recognition (Startup India)
The Department for Promotion of Industry and Internal Trade (DPIIT) recognises eligible entities as “startups”. Broadly, the entity must be:
- A Private Limited company, LLP or registered partnership firm.
- Within an age limit since incorporation, and below a turnover limit in every year.
- Working on innovation, improvement of products or processes, or a scalable model with high potential for jobs or wealth creation.
- Not formed by splitting up or reconstructing an existing business.
Apply online on the Startup India portal. Check the current criteria there.
Benefits can include:
- Access to schemes such as the Startup India Seed Fund Scheme (via incubators) and the Credit Guarantee Scheme for Startups.
- Faster patent examination and fee rebates on patents, trademarks and designs.
- Self-certification under certain labour and environmental laws.
- For eligible companies, an income-tax holiday under Section 80-IAC for a set number of years. This needs a separate approval from an inter-ministerial board.
- Easier participation in public procurement.
GST basics
You generally need GST registration once aggregate turnover crosses the threshold (lower for services than goods, and lower in some states). Some businesses must register from day one: those making inter-state supplies of goods, many e-commerce sellers, and others. See our explainer on GST for small businesses.
Your compliance calendar
Work with your CA to list exact due dates. Typical recurring items for a small Pvt Ltd:
| Frequency | What |
|---|---|
| Monthly | GST returns (GSTR-1, GSTR-3B, or quarterly under QRMP), TDS payments, PF/ESIC (once applicable) |
| Quarterly | TDS returns, advance tax instalments (if tax is payable) |
| Annually | Statutory audit, ROC annual filings (financial statements and annual return), income tax return, director KYC, GST annual return (if applicable) |
| Event-based | Share allotments, director changes, registered-office changes, ESOP grants: each has its own filing |
Penalties for missing ROC and GST deadlines add up quickly and can block future filings. A good CA is worth every rupee.
Labour basics as you hire
Registrations such as EPF and ESIC become mandatory above certain employee counts. Your state’s Shops & Establishments law, professional tax and India’s labour codes also apply. Check current thresholds with your CA or HR adviser.
Your takeaway
Apply for DPIIT recognition, decide on GST, and put every deadline in a shared calendar. You’ve finished Level 4. Next: build your MVP.