Here's Why start-ups need to start taking compliance seriously

1. Here's Why start-ups need to start taking compliance seriously Starting a new business is a challenging pursuit, you need to command on everything from concept to the complete execution of rules and regulations. Although, if you've already covered all the legal barriers, you're tremendously going aptly on your way towards success. But if you're a start-up and looking for ways to get your company's operation efficiently, then you have to adhere to all the legal guidelines set under Companies Act 2013. As each type of entity (Private and Public company or LLP) is governed by separate laws, though there are certain common laws which are to be complied with. Any lethargic attitude in the legal formalities of your start-up could drag your company’s image down. So, the companies should follow the sequence of the laws properly. Whether you have a public or a private company, after the incorporation of your company, it is imperative to check out each detail about the company separately. There should be no gap between the compliances, entrepreneurs ought to take care of due diligence of companies. This is why it is compelling for directors of the company to have a rigorous 360-view of their compliance and to ensure that their support systems are working to report all the compliances regularly. As far as companies are concerned, there are three main bodies of compliances that are essential: Company Law (Company Act, 2013, and the associated rules) Income tax (Income Tax Act, 1961)

2. Indirect taxes (service tax, value-added tax (VAT), Goods and Services Tax (GST). On top of that, the Government of India has come up with a comprehensive policy to encourage start-ups in India through various policies and regulations. As per the companies act, certain start-ups which are incorporated between the 1st day of April 2016 and the 1st day of April 2019 are also eligible for tax benefits. Under the Start-ups Intellectual Property Protection, reduced patent fees (rebate up to 80 percent of the regular fees) for the patent applicants will certainly boost innovation. All the Companies registered in India are fundamentally regulated by the recently enacted New Companies Act. As per the New Companies Act, amongst other provisions, sets out the comprehensive provisions regarding qualification, the appointment of Directors, remuneration removal, the retirement of directors, conducting board and shareholders meetings, periodical filing of forms with the Registrar of Companies, etc. After all the legal formalities needed for incorporation are completed and the certificate of incorporation is issued to the company, the company is recognized as a separate legal entity in terms of the law, distinct from its members who have incorporated such entity. Once your Company is incorporated, some of the compulsory mandates which you are required to take care of are enlisted below. Let’s take a look. Obtaining Permanent Account Number Obtaining Tax Deduction Account Obtaining Import Export Code (IEC) – for exports of services and goods Obtaining Service Tax Registrations – for the rendering of services Accounting and Book Keeping Statutory Audit under Companies Act, 1956 Tax Audit Annual ROC filings Annual Income Tax Return filing Quarterly filing of TDS returns Monthly e-filing of VAT returns Half-yearly filing of Service Tax Returns Maintaining of Statutory Registers, minutes books, holding Board Meetings, Annual General Meetings The Company Check is an innovative online platform that gives you the opportunity to discover business information about all Indian companies. For more details about the company information visit our website: https://www.thecompanycheck.com