Annual Compliance Package for Startups
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Annual compliance package
In India, an entity has to comply with a long list of compliances such as book keeping, GST filing, TDS filing, Income tax filing, ROC filing and so on. Missing due dates (or) inaccurate information would lead to heavy penalties / fines.
This all sounds very boring and mind boggling doesn’t it? It would be good to have a compliance manager to take care of all your compliances at a subsidized cost.
Launch your Startup with The Filings Annual Compliance Package. The package comprises of the following items:
- Book keeping services
- Assistance for periodic remittance of statutory dues such as TDS and GST
- GST filing
- TDS return filing
- Maintenance of secretarial records and registers
- Event based secretarial compliances(adding director, resignation of director,etc)
- Assistance for statutory audit and tax audit
- Income tax filing
- Preparation of Director’s Report and Board Report for Annual General Meeting
- Annual filing with ROC
A large number of founders start their company, open the bank account, hire employees, build their product, acquire customers and start scouting for investors. Once they initiate the talks with the investors, the first requirement the investor comes up with is the financial statements of the startup i.e., Balance sheet and Profit & Loss account till date. Only then do the founders realise that the startup has to maintain books and have a list of compliances that the startup had to file! They immediately rush to a Chartered Accountant for preparing the books of accounts and prepare the financial statements. And at this stage, the Chartered accountant can’t really help much other than to do a clean-up act. They will give a list of non-compliance of the startup and would advise to get certain items ticked off at the earliest. The usual list would be as follows:
- Non-filing of GST returns
- Non-filing of ROC returns
- Non-filing of TDS returns
- Non-filing of event-based returns like share allotments, change in directors, etc
- Non-filing of Income tax returns
- Non-maintenance of secretarial records.
The company will have to shell out lakhs for complying with this list belatedly because the penal cost for non-compliance has increased dramatically over the years. In a desperate attempt to get it closed, startups usually incur this penal amount and try to make everything good.
These delayed filings get reflected in the due diligence exercise done by the investor and shines a very poor light on the startup. It can adversely affects the valuation of the startup on the grounds of poor Corporate Governance.
For any startup founder, he/she would wish to value their startup based on the product that they had built. But from an investor perspective, there are a various data points through which a valuation is arrived and Corporate Governance is a key factor.
Any investor would want the start-up to be fully compliant, thereby circumventing the avoidable penal costs and charges.
The importance given by any investor towards compliance is pretty high because non-compliance has a rippling effect on their investments. They expect the founder also to show equal importance towards compliance of their startup. This intention can be very well established if the startup is fully compliant even before receiving the investment. If you, as an investor, are able to convince an investor of your startup’s compliant health, a huge component of the due diligence process is taken care of. Investing in a startup which has good corporate governance systems in place is a confidence booster for all incoming investors.
Why do you need to go for The Filings than any Chartered Accountant?
- Overcoming your biggest fear: For any startup founder, one of their biggest fear is compliance. Or rather, the lack of understanding of the complexities of compliance. We help the founders overcome this by taking care of the annual compliance of the startup end-to-end while the founders can focus on operations and core activities.
- Experience of handling 100+ startups: We know how startups operate. We speak the language of startups. We know the mindset of a founder. We’ve been there and done that.
- Young team: We are a young team of professionals comprising of Chartered accountants, Company Secretaries, Management graduates, etc. Our team has a great collective experience of working with a wide variety of start-ups.
- Quick turnaround time: We know how stressful it can get when nobody responds to your request. Don’t worry, one of our strong suits is our quick turnaround time. “We will get back to you at the earliest” is no more just a cliché!
- Completely digital: We completely operate on cloud while maintaining security and privacy of your data.
- Anytime due diligence ready: We ensure the startup’s books and compliance is up to date and is always diligence ready. You never know when destiny comes knocking on your door!
- Proactive approach: Our approach is totally proactive and we keep the startup founder always informed about the status of their books and compliance.
- Cost: The cost at which you can do the annual compliance for a startup in The Filings is much more subsidized compared to the market rates. Since we have a dedicated startup cell, we are able to provide the services at a subsidized cost.
- Under One roof: The ease of getting all your compliances done under one roof is something special we offer. Not to brag, but we truly are your one stop solution.
- Best practices: The Filngs has been part of implementing the best practices across funded startups infused by their institutional investors. Our aim is to bring those practices into early stage startups also.
- How It Works
- Docs Required
Analyse your requirements
The Filings expert is assigned with 24x7 support
Monthly delivery of services with a report
Event based compliances
The documents required for each event shall be communicated at the right point in time based on the requirements.
- What are the compliances that are usually applicable to a funded/bootstrapped startup:
GST compliance: If the startup is earning income, it needs to obtain GST registration and file monthly returns with the Government. Delay in obtaining GST registration or delay in filing of GST returns leads to severe penal consequences.
Annual filing with ROC: A startup once registered with ROC has to file its Balance sheet and Profit & Loss account with Registrar of Companies on an annual basis. Non-filing of Annual returns leads to severe penal consequences upto the extent of the director’s DIN (Director Identification Number) being cancelled and barred from being a director for 3 years.
TDS compliance: A startup has to deduct and pay TDS on its expenses. Non-payment of TDS or non-filing of TDS returns lead to severe penal consequences
Income tax compliance: All companies had to file its return of Income with Income Tax Department on or before 30th September each year. Non-filing would lead to a series of consequences like penalty, restriction on carry forward of losses, income tax scrutiny, etc.
Event based compliances: Event based filings like change in director, share allotment, change in registered office, etc need to be filed on time as per the relevant rules and regulations. The changes need to be effected under various regulations like GST, TDS, ROC, Income tax, PF and ESI. Non-filing lead to severe penal consequences under various acts.
PF/ESI compliance: A startup having employees has to comply with PF/ESI regulations. Non-payment of PF/ESI or non-filing of PF/ESI returns leads to severe penal consequences including prosecution.
- How can The Filings help you out?
It is not intentional to scare the founders with complex compliance jargons. It is the rule of the land and India is a country of various rules and regulations. The Filings has sufficient amount of expertise in handling issues related to compliance of both state and central laws. Engaging us would enable you to focus on your business and leave the compliance to us. You do what you’re good at and we can do what we’re good at! It’s a win-win situation.
- Why should a startup spend on compliance because there is no benefit from it?
The benefits from running a fully compliant startup are completely intangible. The cost of non-compliance is much much higher than the cost of compliance.
Any startup needs to think about the image it projects to the potential investors and this image has a direct effect on your valuation. It is all about the comfort that can be given to the potential investor and how serious a startup is about its overall compliance.
- What if the startup had missed some of the compliances and needs to clean up before approaching the investor?
Yes, we have a special approach of it. The entire list of compliances applicable for the startup will be taken and all relevant documentations and filings shall be made under applicable laws and regulations. We pride ourselves in the fact that we have enough experience in bringing a startup from a “non-compliant” stage to “diligence ready”.
- How will the security and privacy of your data ensured?
The Filings will never share your data with any third party. Our sound technology practices ensure a highly secure environment for all your data.
- How do you pay for your services?
Clicking on the Buy now button would take you to a secure payment page where you can pay through Internet banking/debit/credit cards. The payment for our services can be split into quarterly, half yearly and yearly instalments based on your convenience.
- How can you check the status of your work done?
Once the payment is done, your work will be assigned to our dedicated The Filings professional. Reference number shall be assigned to you for your tracking purpose. Your work can be tracked online through our help desk platform.
- Can I talk to you before buying?
Yes, you can write to us with your contact number and mail ID. We will get back to you at the earliest.
- Can this package be modified to include any requirements?
Yes, you can write to us with your requirements. We will get back to you at the earliest.
- What are the compliances that are usually applicable to a funded/bootstrapped startup:
- Entities with less than 25 transactions in a month
- Entities with less than 50 transactions in a month
per annumBest Selling
- Entities with less than 100 transactions in a month
Reach out to us for a customised quote
- Entities with more than 100 transactions in a month
*Can be paid in quarterly instalments, *Inclusive of taxes, *Inclusive of government fees, stamp duty and notary charges ,*Subject to increase based on authorised capital