Starting a business is an exciting journey, but staying compliant can feel overwhelming for new founders. While you focus on building your dream venture, compliance might seem like a tedious task—yet ignoring it can lead to costly penalties and unnecessary stress.
To help you navigate this crucial aspect of your startup, we’ve outlined the 10 most common compliance mistakes and simple ways to avoid them. Let’s make this process stress-free, so you can focus on growing your business.
1. Forgetting to Appoint a Statutory Auditor
The Problem: As per Indian law, you must appoint a statutory auditor within 30 days of incorporation. Missing this deadline can result in hefty penalties.
The Solution: Finalize an auditor as soon as you incorporate. Not sure how to proceed? Reach out to us, and we’ll guide you through the process.
2. Missing Mandatory GST Registration
The Problem: If your annual turnover exceeds ₹20 lakh (₹10 lakh for specific states) or if you operate in e-commerce, GST registration is mandatory. Failing to register can lead to penalties and operational disruptions.
The Solution: Assess your GST applicability early. Need guidance? Book a free consultation today.
3. Skipping ROC Annual Filings
The Problem: Every private limited company must file annual returns with the Registrar of Companies (ROC). Missing deadlines can lead to fines and reputational damage.
The Solution: Set up reminders for key filing dates—or let us handle it with our automated compliance services.
4. Overlooking TDS (Tax Deducted at Source)
The Problem: TDS applies to payments like salaries and vendor fees. Failing to deduct and deposit TDS on time can result in penalties and harm your financial credibility.
The Solution: Use a simple tracking system for TDS compliance. Need assistance? We can set it up for you.
5. Ignoring Professional Tax Requirements
The Problem: Some states mandate Professional Tax registration for employees. Non-compliance can lead to state-specific fines.
The Solution: Check your state’s requirements early. Our team ensures compliance across all regions.
6. Failing to Maintain Proper Accounting Records
The Problem: Poor bookkeeping can lead to issues during audits, funding rounds, or tax filings.
The Solution: Use accounting software or hire professionals. We offer affordable bookkeeping services tailored for startups.
7. Neglecting Payroll Compliance
The Problem: Many startups miscalculate employee Provident Fund (PF), Employee State Insurance (ESI), or TDS, leading to financial and legal complications.
The Solution: Automate your payroll or let experts handle it. We provide full payroll compliance support.
8. Not Protecting Your Brand with a Trademark
The Problem: If your business name or logo isn’t trademarked, someone else can claim it, leading to legal battles.
The Solution: Register your trademark early to secure your brand identity. We make the process simple and hassle-free.
9. Delaying ESOP Structuring
The Problem: Employee Stock Option Plans (ESOPs) help attract and retain top talent. Delays in structuring ESOPs can make hiring more challenging.
The Solution: Create a clear ESOP policy early on. We specialize in startup-friendly ESOP structures.
10. Forgetting Startup India Benefits
The Problem: Many startups miss out on tax exemptions and funding opportunities available under the Startup India scheme.
The Solution: Apply for Startup India registration to unlock benefits. We’ve helped 2,000+ startups—let’s help you too.
Take Action Now to Avoid Compliance Stress
Compliance doesn’t have to be a headache. We’re here to simplify it so you can focus on growing your business.
👉 Get Your Free Compliance Checkup
👉 Call us at +91 81306 45164 for instant help.
We’ve got your back—whether it’s managing filings, setting up systems, or protecting your brand. Let’s work together to keep your startup thriving.
Final Thoughts
Running a startup is challenging, but you don’t have to do it alone. Avoiding these compliance mistakes can save you time, money, and stress.
Let us handle the paperwork while you focus on what truly matters: building your dream business.
