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For startups

You incorporated fast. Now make sure there are no compliance landmines.

Most founders discover these at their first statutory audit. By then, the penalty has been accruing for months.

Find your blind spots
Blind spots

5 compliance landmines hiding in every startup

These aren't edge cases. They apply to almost every Pvt Ltd or LLP that's been operating for 12+ months.

01

DPT-3 — Return of Deposits

MCA

Every private company that accepts money from shareholders, directors, or related parties must file DPT-3 annually. Most startups with convertible notes or inter-company loans miss this entirely.

Penalty ₹5,000 + ₹500/day
02

MSME-1 — Outstanding to MSME Vendors

MSME

If you owe money to any MSME vendor beyond 45 days, you must file a half-yearly return. One unpaid vendor invoice triggers this — and most founders have no idea it exists.

Penalty ₹20,000 + ₹1,000/day
03

DIR-3 KYC — Director KYC Annual

MCA

Every director must file KYC annually. Miss it, and your DIN gets deactivated. That means you can't sign any company document — including the very form to reactivate it.

Penalty DIN deactivation
04

POSH — Sexual Harassment Policy

Labour

Any company with 10+ employees must have a POSH policy and Internal Complaints Committee. Startups that hire fast often cross this threshold without realising the obligation.

Penalty ₹50,000
05

Professional Tax — State Professional Tax Registration

State

If you have employees in Karnataka, Maharashtra, West Bengal, or other PT states, you need separate PT registration and monthly/annual filings. Remote teams make this a minefield.

Penalty ₹1,000+ per state

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6,243
Rules
90
Domains
36
States
20
Industries
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