Startup compliance roadmap: incorporation to first audit
Founders usually miss process — not ambition. This sequence keeps diligence rooms calmer later.
Stage 1 — Incorporation hygiene
- Correct share capital & subscriber sheets
- Bank account + documented first expenses
- Employment contracts before first payroll run
Stage 2 — Tax registrations on time
Monitor GST thresholds carefully if you sell across states or run marketplaces. TAN / TDS processes should start with the first contractor payment, not the first notice.
Stage 3 — Cap table & ESOP discipline
Every SAFE, convertible and secondary sale needs a paper trail. ESOP trusts and valuation reports belong in the data room from day one of fundraising prep.
Stage 4 — First statutory audit
Appoint auditors with enough runway. Clean revenue cut-off, related-party disclosures and related-party loans are the usual late surprises.