1) First decisions: what to register and why
For 95% of venture-style or scalable businesses, you’ll choose Private Limited Company (Pvt Ltd) or LLP.
- Private Limited Company — best for fundraising (VCs, ESOPs), issuing shares, global credibility. You’ll incorporate on the MCA portal using SPICe+, which bundles name approval, incorporation, PAN/TAN, and more into one flow.
- LLP — simpler ownership/management with partnership flavor; good for small services firms, but less friendly for equity funding/ESOPs.
If you plan to apply for DPIIT (Startup India) recognition and later a Section 80-IAC tax holiday, a Pvt Ltd is usually the smoother path.
2) Incorporation on MCA: your step-by-step
The MCA has digitized incorporation into a single web form called SPICe+ (pronounced “spice plus”). You’ll also file a linked form called AGILE-PRO-S (INC-35) to activate multiple registrations in one go.
What SPICe+ does for you
- Part A: Reserve your company name.
- Part B: Incorporate the company, allot DIN (for up to 3 directors), issue PAN and TAN, and attach e-MOA (INC-33) and e-AOA (INC-34).
What AGILE-PRO-S (INC-35) adds
- GSTIN (optional at incorporation if you’re not crossing threshold yet)
- EPFO & ESIC (mandatory for companies at incorporation; actual contributions depend on employee counts & wages)
- Professional Tax (where applicable)
- Bank account opening (via partner banks)
- In some states, Shops & Establishments registration can be initiated too.
Documents you’ll typically need
- Proposed company name(s) and brief objects
- Registered office proof (rent agreement/ownership proof + utility bill)
- Identity + address proof for all subscribers/directors
- Digital Signatures (DSCs) for at least one director/subscriber
Outputs you get
- Certificate of Incorporation (with CIN)
- PAN & TAN
- Bank account request filed
- Statutory registrations as selected in AGILE-PRO-S
3) Post-incorporation housekeeping (don’t skip!)
- Board meeting & first auditor: Appoint the first auditor and file ADT-1 within the statutory timeline after your first AGM cycle kicks in.
- Statutory registers: Maintain share allotments, members, directors, etc.
- Letterheads, company seal (if used), signages: Must show full legal name, CIN, registered office address, contact details.
- Open bank account & deposit initial capital.
- Accounting set-up: Chart of accounts, invoice templates (with GST fields if applicable).
- Employment basics: Offer letters, confidentiality/IP assignment clauses, and payroll setup. (EPFO/ESIC filings apply once you cross eligibility thresholds.)
4) Startup India (DPIIT) Recognition: why it matters & how to get it
Why do this?
DPIIT recognition unlocks:
- Access to central schemes (grants, credit guarantee), relaxed public procurement norms, and self-certification under select labor/environment laws for a period.
- Eligibility to apply for the tax holiday under Section 80-IAC (separate application after recognition).
Eligibility snapshot
- New/young entity (≤ 10 years from incorporation), turnover < ₹100 crore, working on innovation, improvement, or scalable business model with high employment or wealth creation potential. (These are the headline tests used by DPIIT.)
How to apply
- Create an account on Startup India portal and start the Recognition application.
- Upload incorporation docs, brief on problem/solution, innovation, users, and any traction/IP.
- On approval, you receive a DPIIT Recognition Certificate. Later, you may apply for Section 80-IAC income-tax exemption (3 consecutive years out of 10).
Important date
- The Finance Act 2024 extended the window for eligible startups’ date of incorporation for the 80-IAC tax holiday to 31 March 2025 (i.e., startups incorporated up to that date could apply if they meet conditions). Always check the latest updates for further extensions.
5) Section 80-IAC: the famous “3-years tax holiday” (what it is & what it isn’t)
What you can get
- 100% deduction of profits for any 3 consecutive years within the first 10 years from incorporation, after your separate 80-IAC application is approved (post-DPIIT recognition). The 3 years are your choice (they must be consecutive).
Common misunderstandings
- Not automatic with DPIIT recognition — you must apply for the 80-IAC exemption.
- Approval is selective; if rejected, you can reapply after 3 months with improvements.
Why founders still pay taxes even after 80-IAC
- The deduction is for profits (if any). You’ll still handle TDS/GST compliances, and MAT/AMT considerations may apply depending on your structure. Plan with a CA.
6) Funding & benefits beyond tax: the government support stack
- SISFS — Startup India Seed Fund Scheme: Grants/seed investments routed via incubators for PoC, prototypes, trials, market entry, commercialization. Check incubators and apply via the SISFS portal.
- Fund of Funds for Startups (FFS): Corpus managed via SIDBI—LP commitments to SEBI-registered AIFs that invest in startups (you don’t apply directly; VCs do). (Overview and access via Startup India portal.)
- Credit Guarantee Scheme for Startups (CGSS): Collateral-free loans backed by guarantee cover (apply through eligible lenders, see Startup India updates).
- MAARG: National mentor-matching platform on Startup India—find domain mentors for product, go-to-market, fundraising, compliance.
7) MCA annual compliance: the calendar you really need
For a Private Limited Company (small/early stage), the core annual filings are:
- AOC-4 / AOC-4 XBRL (financial statements): within 30 days of your AGM
- MGT-7 / MGT-7A (annual return): within 60 days of your AGM
- ADT-1 (auditor appointment): within 15 days from AGM (for auditor appointed at AGM)
(Other filings apply case-by-case—e.g., charges, KMP changes, share allotments.)
Heads-up on filing platform changes
MCA has been migrating company e-forms to the MCA-21 V3 portal. Recent updates moved annual return/financial statement forms (MGT-7/AOC-4) into a web-based filing experience (phased roll-out through 2025). Expect new disclosures and on-screen validation. Always check the live V3 portal for the current process.
Other compliance you’ll likely touch
- DIR-3 KYC (directors’ annual KYC)
- MSME disclosures (MSME-1) for outstanding dues to registered MSMEs >45 days
- Board/AGM minutes and registers kept up-to-date
(Your CS/CA can keep this as a monthly tracker.)
8) Taxes & payroll: doing it right from day 1
- GST: Register when your turnover crosses threshold (or earlier if you sell inter-state, on marketplaces, or by choice). If you opted for GST via AGILE-PRO-S, you’ll receive credentials post-incorporation.
- TDS/TCS: Deduct and deposit on time (salaries, contractors, rent, etc. as applicable).
- EPFO/ESIC: Registration is seeded at incorporation; actual contributions kick in once you meet employee count/wage conditions
- Professional Tax: State-specific; if applicable, periodic returns/payment.
Section 80-IAC vs. “no taxes at all”
Even with an 80-IAC profit deduction, routine indirect taxes (GST) and withholding (TDS) obligations still apply. Keep your compliance calendar and cashflows aligned.
9) Startup-friendly extras that most founders miss
- Public procurement relaxations for DPIIT-recognized startups (e.g., exemptions from prior turnover/experience in certain tenders). Check Startup India updates and tender portals for the latest eligibility.
- IPR support: Fast-track patent examination and fee rebates for startups (access via Startup India).
- Mentorship & networks: MAARG connects you to vetted mentors—don’t wait until fundraising; use it for product-market fit and early GTM.
10) A founder’s one-page checklist (print this)
Before incorporation
- Pick structure (Pvt Ltd/LLP)
- Decide name & check availability
- Finalize cap table (founders’ share split), directors, registered office
During MCA filing
- Fill SPICe+ Part A (name) → Part B (incorporation)
- Attach e-MOA (INC-33) and e-AOA (INC-34)
- File AGILE-PRO-S to request GST, EPFO, ESIC, bank account, etc. (choose what you need)
After incorporation
- Hold first board meeting; appoint first auditor; complete ADT-1 timeline later post-AGM
- Open bank account (if not auto-opened via AGILE-PRO-S partner)
- Put accounting + payroll + invoice stack in place
- Create statutory registers & letterheads (with CIN)
- If product-innovation oriented → Apply for DPIIT recognition on Startup India
- Once recognized and eligible → Apply for Section 80-IAC (3-year profit deduction)
Ongoing compliance
- Monthly/Quarterly: GST, TDS, PF/ESI as applicable
- Annually: AOC-4, MGT-7, DIR-3 KYC, auditor appointment/ratification, AGM within the statutory window (watch MCA-21 V3 updates)
11) Pro tips to stay out of trouble
- Use the portals, not hearsay: MCA V3 and Startup India pages post live changes (forms, dates, and scheme tweaks). Bookmark them and re-check before every filing season.
- File clean narratives for DPIIT & 80-IAC: Be specific on the innovation, problem, solution, differentiation, and impact. If you’re rejected, improve and reapply after 3 months.
- Data hygiene: Keep directors’ KYC, address proofs, and share allotment/board records tight—most startup penalties come from sloppy paperwork, not fraud.
- Bank recon + compliance calendar: Close books monthly. Don’t let dues slip into interest/late-fee territory.
12) Quick links you’ll actually use (what to search for)
- “MCA SPICe+ web form” and “AGILE-PRO-S INC-35” — incorporation + bundled registrations.
- “Startup India DPIIT recognition” — get your recognition certificate; then “Section 80-IAC exemption”.
- “Startup India regulatory updates” — latest on tax holiday window and schemes.
- “MCA-21 V3 AOC-4 MGT-7” — current forms & deadlines for annual filings.
- “SISFS Seed Fund portal” — apply to incubators for PoC/prototype/market entry grants.
Final word
If you follow this sequence—incorporate cleanly on MCA (SPICe+ + AGILE-PRO-S) → apply for DPIIT recognition → apply for 80-IAC when ready → run a tight compliance calendar on MCA-21 V3 + taxes—you’ll have a legally solid startup with access to India’s official benefits (seed funding via incubators, credit guarantees, and a potential 3-year profit tax holiday). Keep an eye on dates and portal updates—they do change—and you’ll stay both fast and compliant.
