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Home › Companies Act, MCA and Startup Compliance
Corporate & Startup Compliance

Companies Act, MCA and Startup Compliance Hub

Companies Act operational repository

MCA Rules and Forms · Startup company applicability · Compliance workflows

Entity structure choice, MCA annual filings, MSME payment compliance, startup funding instruments, ESOP taxation and director remuneration — for founders, company secretaries and finance teams managing corporate compliance in India.

Entity Structure & Annual Compliance

Private Limited vs LLP vs OPC: Comparison

Choosing the right structure for liability, compliance and fundraising
Sole Proprietorship to Private Limited Conversion

Tax treatment and process for converting your structure as you scale
MCA Annual Filing for Private Limited Companies

AOC-4, MGT-7 and the annual ROC compliance calendar
Startup Compliance Checklist India

The full year-one compliance list across MCA, GST and labour law
Udyam/MSME Registration: Benefits Guide

Registration process and the compliance/credit benefits it unlocks

MSME Payment Compliance

Section 43B(h): MSME Payment Compliance

The 45-day payment rule and its income-tax disallowance consequence
Section 43B MSME Disallowance Under the New Act

How the 45-day rule maps to the Income-tax Act 2025

Startup Funding & Equity

Startup Funding Stages Explained

Seed to Series A and beyond — what changes at each round
Convertible Notes & SAFE: Startup Funding in India

How these instruments work under Indian company law
Angel Tax: Section 56(2)(viib)

When share premium on startup funding becomes taxable
Section 54GB: Capital Gains Exemption for Startup Investment

Reinvestment exemption for investing capital gains into eligible startups
ESOP Deferred Tax for Startup Employees

Section 192(1C) deferral of perquisite tax for eligible startups

Want the Full Act provisions, Chapter by Chapter?

This hub covers practical founder-facing checklists. For the complete Companies Act, 2013 — all 29 chapters, current Rules under each Part and all 7 statutory Schedules, with Schedule III's three divisions separately covered — 9 study modules with bare provisions, decode and professional cases — see the Companies Act, 2013 Full Study Guide Hub.

Director & Treasury Matters

Directors' Remuneration: Salary vs Professional Fee

Tax treatment differs sharply depending on how remuneration is structured
Treasury Management for Startups in India

Managing surplus funds, banking and short-term investment for startups
AMT for LLPs Under the Income-tax Act 2025

Alternate Minimum Tax obligations for LLPs claiming deductions
🧾 Income Tax Calculator 💼 Salary Optimizer 🏢 Small Company Status Checker 🌱 CSR Applicability Calculator 🔍 Internal Audit Checker 📋 Secretarial Audit Checker 🏭 MSME Classification Checker ⏱️ MSME Delayed Payment Interest

Practical Checklist: Year-One Startup Compliance

  • Choose your entity structure (Pvt Ltd / LLP / OPC) based on funding plans and liability needs
  • Complete MCA incorporation filings and obtain PAN, TAN and a current account
  • Register for GST if turnover thresholds are crossed or registration is otherwise mandatory
  • File MCA annual returns (AOC-4, MGT-7) every year, even with zero activity
  • Track MSME vendor payments — settle within 45 days to avoid Section 43B(h) disallowance
  • If issuing ESOPs, document the scheme and valuation correctly for Section 17(2) perquisite computation
  • Maintain statutory registers and board meeting minutes from day one — reconstruction later is far harder

Frequently Asked Questions

Should I start as an LLP or a Private Limited company? ▼
It depends on your funding plans. A Private Limited company is generally required if you plan to raise equity funding from VCs/angel investors, since LLPs cannot issue equity shares in the same way. An LLP has lower compliance overhead and may suit a services business with no external equity-funding plans, but check current foreign-investment and conversion rules with a CA/CS before deciding, since converting later has its own costs.
What happens if I pay an MSME vendor after 45 days? ▼
Under Section 43B(h), payments to micro and small enterprises not made within the time limit specified under the MSME Development Act (45 days, or the agreed period if shorter) are disallowed as a business expense for income tax purposes in the year they were due — they become deductible only in the year actual payment is made, not when the expense was incurred.
Do I need to file MCA returns even if my company had no activity? ▼
Yes. Annual MCA filings (AOC-4 for financial statements, MGT-7 for the annual return) are mandatory for every registered company regardless of whether it did any business during the year. Missing these deadlines attracts additional fees and can eventually lead to the company being struck off or directors being disqualified.

Regulatory Updates

OngoingSection 43B(h) MSME payment disallowance continues to apply for Tax Year 2026-27 under the Income-tax Act 2025, with the underlying 45-day rule unchanged from the MSME Development Act.

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Disclaimer: These guides are for educational purposes only and do not constitute legal or tax advice. Companies Act, MCA and MSME provisions change periodically — always verify current requirements with a qualified Company Secretary or Chartered Accountant.
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