Legal Compliance Checklist for Indian Startups

Startup Legal Compliance Checklist

Use this checklist to ensure your startup has addressed the fundamental legal requirements at each stage of growth.

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Phase 1: Incorporation & Foundation

Entity Formation

• Choose appropriate entity structure (Private Limited recommended for funding)
• Register company with Registrar of Companies (ROC)
• Obtain Certificate of Incorporation
• Apply for PAN and TAN
• Open company bank account
• Register for GST (if applicable)
• Obtain Shops & Establishment registration

Founder Documentation

• Execute Founders' Agreement covering:
  • Roles and responsibilities
  • Equity split and vesting schedule
  • IP assignment to company
  • Non-compete and non-solicitation terms
  • Decision-making process
  • Exit provisions
• Complete IP Assignment Agreements (all founders)
• Document any pre-existing IP and licensing terms

Governance Setup

• Adopt Articles of Association
• Hold first Board meeting and document minutes
• Appoint statutory auditor
• Establish registered office

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Phase 2: Operations & Team

Employment Compliance

• Draft standard employment agreement template
• Create employee handbook covering:
  • Leave policies
  • Code of conduct
  • Confidentiality obligations
  • Grievance procedures
• Establish NDA/Confidentiality agreements for employees
• Register under applicable labor laws:
  • EPF (if 20+ employees)
  • ESIC (if applicable)
  • Professional Tax
  • Shops & Establishments Act

POSH Compliance (10+ employees)

• Constitute Internal Complaints Committee
• Draft and display POSH policy
• Conduct awareness training
• File annual returns

Contractor & Vendor Management

• Standard contractor/consultant agreement template
• Vendor agreements with appropriate terms
• NDAs for all third parties with access to confidential information

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Phase 3: Intellectual Property

Trademark Protection

• Conduct trademark search for brand name
• File trademark application (relevant classes)
• Document brand usage guidelines

Technology & Software

• Ensure all code is developed under work-for-hire or assigned
• Document open-source usage and license compliance
• Maintain software bill of materials

Trade Secrets

• Identify and document confidential information
• Implement access controls
• Include confidentiality provisions in all agreements

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Phase 4: Customer & Commercial

Terms of Service & Privacy

• Draft Terms of Service/Use
• Create Privacy Policy (DPDPA-compliant)
• Implement cookie consent mechanism (if applicable)
• Establish data retention policy

Commercial Agreements

• Standard customer/client agreement template
• SaaS/subscription agreement (if applicable)
• Partnership/reseller agreement templates

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Phase 5: Fundraising Readiness

ESOP Setup

• Board and shareholder approval for ESOP pool
• Draft ESOP scheme document
• Create grant letter template
• Establish vesting schedule framework
• FMV valuation from registered valuer

Due Diligence Preparation

• Organize all corporate documents
• Compile contract register
• Document all material litigation
• Prepare cap table
• Gather tax compliance certificates
• Collect regulatory approvals/licenses

Investment Documentation

• Understand term sheet terms
• Prepare for:
  • Share Subscription Agreement
  • Shareholders' Agreement
  • Board reconstitution

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Ongoing Compliance Calendar

Monthly

• GST returns (if applicable)
• TDS payments and returns

Quarterly

• Board meetings (minimum)
• EPF/ESIC payments

Annually

• Annual General Meeting
• File annual returns with ROC
• Renew licenses and registrations
• POSH annual report
• Statutory audit
• Income tax returns

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This checklist provides general guidance. Consult RevLaw for advice specific to your startup's situation.