Your quick answers on GST, FEMA, fundraising, IP, and startup compliance
1. What legal and compliance services do startups in India need?
Startups in India typically require company incorporation, ROC and MCA filings, GST and income tax compliance, intellectual property registration, employment contracts, shareholder agreements and FEMA compliance if foreign funding is involved. Professional advisory ensures legal accuracy, avoids penalties and prepares the company for investor due diligence.
2. Do startups in India really need professional compliance support?
Yes. Indian regulations change frequently and non-compliance can lead to financial penalties, blocked bank accounts or loss of investor trust. Professional advisors help startups remain audit-ready, manage filings correctly and avoid regulatory disruptions during growth.
3. What is startup tax compliance in India?
Startup tax compliance includes GST registration and return filing, income tax returns, advance tax planning, TDS compliance, payroll tax management and audit support. Strong tax compliance ensures accurate reporting, avoids notices and improves financial credibility with investors and banks.
4. Why is FEMA compliance important for startups?
Any startup receiving foreign investment must comply with RBI and FEMA regulations. Incorrect structuring can result in frozen funds, remittance issues and penalties. FEMA advisory ensures lawful receipt of FDI, ODI reporting and cross-border transaction support.
5. What documents do investors check before funding a startup?
Investors review legal incorporation records, IP ownership, tax filings, FEMA compliance, cap tables, shareholder agreements, financial statements and employment contracts. Weak documentation immediately raises red flags in due diligence and delays funding.
