Overview
Startups need the right foundation early: entity and shareholding structure, founder agreements, ESOP pools, DPIIT recognition and a compliance calendar that keeps them investor-ready.
DPIIT-recognised startups can access benefits such as self-certification under certain labour and environment laws, easier public procurement and, for eligible entities, an income-tax holiday for three consecutive years out of the first ten.
Who needs this service
Legal and regulatory framework
- Companies Act, 2013
- DPIIT notifications on startup recognition
- Income-tax law: startup tax holiday provisions
- FEMA for foreign investment into startups
Scope of services
Set-up
- Entity choice and incorporation
- Cap table and founder shareholding
- Startup India / DPIIT recognition
Fundraising readiness
- ESOP scheme structuring
- Valuation for share issues
- Due diligence readiness and data room
Compliance
- Compliance calendar
- Accounting and GST set-up
- Investor reporting formats
How the engagement works
- Stage reviewCurrent structure and plans.
- FoundationEntity, cap table and registrations.
- ReadinessESOPs, valuation and documents.
- OngoingMonthly compliance and reporting.
Documents typically required
Key forms and due dates
| Item | Timeline |
|---|---|
| DPIIT eligibility | Entity up to 10 years old with turnover below ₹100 crore in any year |
Deliverables
- DPIIT recognition certificate
- Cap table and ESOP structure
- Compliance calendar
The scope of each engagement is agreed in writing and depends on the nature, size and regulatory requirements of the entity.
Frequently asked questions
Who is eligible for DPIIT recognition?
A private company, LLP or registered partnership up to 10 years from incorporation, with turnover not exceeding ₹100 crore in any year, working on innovation or a scalable business model.
Is angel tax still applicable?
The provision taxing share premium above fair value on issue of shares by closely held companies was abolished from financial year 2024-25 (assessment year 2025-26) onwards.