BASIC ISSUES OF A STARTUP AND KEY AREAS TO BE CHECKED (Compliances for startup)
Every Startup Company has a new idea which is unique. All startups are very well aware about the business they are going to start as they would have done lot of research on it. However, when it comes to compliances lot of startups juggle as they are confused about the latest laws.
This article incorporates the Compliances in a layman language which is easy to understand.
It depends on the scale of operation and where the startup wants to see itself five years down the line. If a startup wish to cater a particular area only and not diversify it into other areas then LLP is a better form. However, Company always enjoys better credibility when it comes to angel investment, pitching and doing multiple business. Therefore depending on your area of activity and long term goal, the decision should be taken. You can contact any consultant who can help you form the entity. If required, please email me. I will send the procedure.
Every Pvt Ltd Company mandatory has the requirement of Audit annually as per Companies Act 2013. However LLP has the requirement of 25 lac contribution and 40 lakh turnover, if the limit is crossed then Audit is mandatorily required. This Audit is to be done by Chartered Accountants.
Two annual filing forms are required to be filed every year.
AOC-4 & MGT-7 (For Companies)
Form 8 & Form 11 (For LLP)
The above information shared is just synopsis to help you understand the basic idea of formation and the Compliances which would be applicable. If any explanation is required in detail, please email me the query at firstname.lastname@example.org or contact me on 9819244185.
The above information is shared only for knowledge purpose. The author is a practicing Chartered Accountant in Mumbai and proprietor of Makwana Sweta & Associates.