Get the entity right.
The rest gets easier.

It depends on three things: do you plan to raise external capital in the next 24 months, do you plan to issue ESOPs, and what is your projected revenue. If any of the first two are "yes" — Pvt Ltd. If neither, and you want lowest compliance — LLP. OPC suits solo consultants. Sole Prop only when forced by legacy reasons. We map this in a 60-minute discovery call.

Government fees, stamp duty, DSC, name reservation, and CoI total roughly ₹15,000–₹25,000 depending on authorised capital. Professional fees are quoted separately and depend on scope (just incorporation vs incorporation + setup + first year compliance). We share a fixed-fee quote after the discovery call.

From document collection to Certificate of Incorporation — typically 7 to 10 working days, assuming no name conflicts. DSC is same-day. DIN allotment, name approval (RUN), and SPICe+ filing run in parallel. Bank account and GST registration follow within another 5-7 days.

DPIIT (Department for Promotion of Industry and Internal Trade) recognition formally classifies your entity as a "Startup" for purposes of tax exemptions, government schemes, and easier compliance. If you intend to claim 80-IAC tax holiday, Section 56(2)(viib) angel tax exemption, or apply for government tenders / Startup India schemes — yes, you need it. Eligibility: incorporated less than 10 years, turnover under ₹100 Cr, working on innovation / scalable model.

Section 80-IAC allows eligible startups to claim 100% deduction of profits for any 3 consecutive years out of the first 10 years from incorporation. You must hold DPIIT recognition and meet specific conditions on innovation, employment generation, and entity type (Pvt Ltd or LLP). Approval is granted by an Inter-Ministerial Board after a detailed application. Approval rates are not high — application quality matters.

ESOPs in India are taxed at two points: (1) at exercise — the difference between exercise price and Fair Market Value (FMV) is taxed as salary perquisite, and (2) at sale — capital gains on the difference between sale price and FMV at exercise. Eligible startups (DPIIT-recognised, under Section 80-IAC eligibility) get deferred tax at exercise — payable later. Setup involves Board approval, shareholder approval (Special Resolution), Rule 11UA valuation, and ESOP scheme document. We handle the full stack.

Section 56(2)(viib) treats the excess of issue price over Fair Market Value of shares (when issued to a resident) as taxable income for the company. To avoid it: maintain a defensible Rule 11UA valuation, file Form 2 with DPIIT for exemption (available to recognised startups), and document the valuation methodology. Most "angel tax notices" come from a missing or weak valuation report. We do this preemptively, not reactively.

Technically yes — under Section 366 of Companies Act 2013, an LLP can be converted to a Pvt Ltd. Practically, it triggers tax events for the LLP partners (capital gains on transfer of LLP interest), a 6+ month MCA process, change in PAN/GST/bank/contracts/cap table. Investor due diligence usually flags this as a complication. The cost of getting it right on Day 1 is a fraction of the cost of conversion later.

Every Pvt Ltd company must appoint a Statutory Auditor at the first Board meeting (within 30 days of incorporation), and the appointment is ratified at the first AGM. Auditor signs the financials each year. This is mandatory regardless of revenue or activity.

CCPS (Compulsorily Convertible Preference Shares) — preference shares that must convert to equity at a defined trigger. Standard instrument for Indian VC rounds. SAFE (Simple Agreement for Future Equity) — a deferred equity instrument popular in early rounds; the Indian variant is structured carefully under FEMA. OCRPS (Optionally Convertible Redeemable Preference Shares) — converts to equity at investor option, with a redemption fallback. Each has different cap table, FEMA, and tax implications. We structure them on the books correctly so the next round doesn't hit roadblocks.

FC-GPR — filed within 30 days of receiving foreign equity inflow, reports the share allotment to RBI via the FIRMS portal. FC-TRS — filed when shares are transferred between resident and non-resident (e.g., founder selling shares to foreign VC in secondary). Both are mandatory under FEMA. Late filings attract compounding penalty. We file these as part of round-closing — not as an afterthought.

Yes — from the first year. AOC-4 (financials) and MGT-7 (annual return) are due within 30 days and 60 days of AGM respectively. DIR-3 KYC for every director, every year. Board meetings minimum 4 per year. Even if the company had zero revenue, these filings are mandatory. Late filing = ₹100/day penalty per form per director.

Founder salary: taxed as personal income at slab rates (up to 39% with surcharge), but deductible as expense for the company. Founder dividend: taxed at slab rate in founder's hands, with no deduction at company level (since it is paid out of post-tax profits — effectively double taxation). Most founders take a moderate salary + retain profits in the company until exit. Optimal mix depends on personal liquidity, company runway, and exit timeline. We model this for each founder.

Our retainership is tiered by team size, transaction volume, and complexity. Early-stage (under 10 employees, no fundraising in flight): a defined monthly fee covering bookkeeping, GST, TDS, payroll, and quarterly review. Pre-Series A (raising round, ESOPs, FC-GPR): higher tier, includes event-triggered support. We share the exact slab during the discovery call — no guesswork.