Due Diligence for Startups in India Archives

Insights on Due Diligence for Startups in India and Types of Due diligence for Startups in India Introduction Due diligence is an investigation or audit performed before an acquisition, investment, business partnership, or bank loan, for example, to ensure compliance with financial, legal, and environmental reports in order to validate the business. A Due Diligence report will summarise all such investigations and audit results. Company due diligence for startups is especially important during the funding round. We have compiled the Company Due Diligence for Startups in India that must be followed to ensure compliance. Insights on Due Diligence for Startups in India A company's due diligence is typically performed prior to a business sale, private equity investment, bank loan funding, and so on. During the due diligence process, the company's financial, legal, and compliance aspects are typically reviewed and documented. A business due diligence is typically performed prior to the acquirer's or investor's purchase of a company or investment in a company. The seller of the business or shares is responsible for providing the buyer with the documents and information needed to perform due diligence on the company. Due diligence assists the buyer in making an informed investment decision and mitigating the risks associated with a business acquisition transaction. Prior to beginning a business due diligence, both parties usually enter into a non-disclosure agreement because sensitive financial, operational, legal, and regulatory information will be disclosed to the buyer during the due diligence process. Types of Due diligence for Startups in India Tax filing due diligence Taxation aspects of a company must be thoroughly examined during the due diligence process to ensure that no unforeseen tax liabilities are imposed on the company at a later date. The following aspects of a company's taxation must be investigated: TDS Return ITR Filing PF Return filing ESI Payment GST Return Filing Legal Compliances This is done to assess the legal and regulatory risks of the company. Legal compliance is frequently the most difficult and time-consuming task. The majority of this is due to Ministry of Corporate Affairs compliance. It entails the investigation of: MOA and AOA Documents relating to any financing arrangements made by the company. Copies of pending or previously filed lawsuits against the company. If any, equipment leases were signed. The company has entered into real estate agreements. Contracts of substance, such as joint venture agreements, partnerships, and other similar arrangements. Minutes of the previous three fiscal years' Board Meetings. All of the registers are for the company. A list of the directors and other key managerial personnel, as well as their contact information. Receipts for taxes paid All certificates of compliance pertaining to regulatory, statutory, and corporate compliances. All RoC filings must be certified true copies. Details on any Settlement Agreements entered into by the Company, whether executed or pending. Specifics about any labor litigation. Operational Aspects During the due diligence process, it is critical to gain a thorough understanding of the business model, business operations, and operational information. The operational aspects must be thoroughly reviewed, including site visits and employee interviews. The following items must be covered and documented during the operational aspects review: Number of Consumers Business Model Seller information Utilities Production information Number of employees Machinery and equipment information Accounting compliance for Startups The Companies Act of 2013 requires all companies to keep a book of accounts and detailed transaction information. As a result, detailed financial transaction information must be audited and verified against the company's financial statements. Among the issues to consider during the business financial due diligence process are: Verification of a bank statement All assets and liabilities must be verified and valued Cash flow information needs to be verified All financial statements are checked against transactional data HR (Human Resource) due diligence Understanding the country's system of employment contracts, labor laws, labor relations, regulatory policies, work culture, and industry standards is part of HR due diligence. In monetary terms, the workforce, or the human side of an organization, has both cost and value. Payroll checklist Schedule of ESOP HR policies Employees contact and other information Conclusion This article covers the fundamental requirements for Indian startups. Companies, startups, and other business structures must bind themselves to MCA compliance requirements to save themselves from any legal consequences. Startups are not only bound to the legal compliances that is mentioned above, there are certain event based legalities that must be filed by Startups.

For Indian Entrepreneur

For Foreign Entrepreneur

Special Entities

Tax Registrations

Other Registration

Returns

Annual Filings

Change Services

Closure

Legal Drafting

Special

Trademark

Copyright

Patent

Designing & Marketing

Blog

Due diligence for startups in India – All you need to Know

Hi, Welcome to EbizFiling!

HOME

POLICY

RELATED LINKS

CONNECT WITH US

TOP 3 READS

All need to know about Trademark infringement

LLC vs. Corporation: Start your company in US

Duties of an Auditor in a Company

Secure Payment Modes

Corporate Legal Advice
LEI Code Registration
Employee Background Verification
Business Solutions and Outsourcing Services in the USA
Offshore Staffing Services in India
SEO Services in India
Content Writing Services in India
Annual Filing & Book-keeping & Accounting Service for Proprietorship Firm
ITIN Registration in the USA
File Form 10BD Online under Income Tax Act
Wall Designing
Virtual Office in India
Form 15CA Online Filing – Income Tax
NGO Darpan Registration
Overseas Direct Investment (ODI) through Automatic and Approval Route
HR Hiring and Recruitment Services in India
FCRA Registration Online in India
File Form CSR 1 online
Drop-Shipping Business in India by Foreigners
OPC Registration in India by an NRI
LLP Registration in India by an NRI
Company Registration in India by an NRI
Digital Marketing Services
Business Advisory Services
Run your operations / company in India without any liabilities
Right Issue of shares / Right Offerings
Application for the Extension of Name Reservation
Company Annual Filings in XBRL filing mode in India
Payment of TDS return on purchase of property (form 26QB)
ISO Certification in India
Add A Director
Accounting and Compliance Services for Start ups, Small companies, LLP and OPC (Micro Retainership Services)
FLA Return Filing Online to RBI in India
Foreign Direct Investment through Automatic and Direct Route
Form GSTR 1
Maharashtra Professional Tax
Premium Retainership Services in India
RBI Form FC-GPR
Charge Registration on property
RBI Form FC-TRS
E-Commerce Business
Logo Design Services
CMA Report Preparation
Startup Advisory Services
Trademark Registration / Brand Registration in the USA
Trademark Registration / Brand Registration in UK
Trademark Registration / Brand Registration in Malaysia
Income tax section 80g(5) registration
12AA & 12A Registration Process
Search Report ROC
Trademark Watch Services
GSTR 9C filing by CA- GST Annual Audit due date, GSTR 9C FAQs
Tax Consultancy Services
File ROC Form DPT 3 Return of Deposits
Surrender of DIN
Trademark Registration Process
Online LLP Registration and Complete Procedure
LLP Registration Procedure – copy
LLP Registration Procedure – copy
Hire Purchase
Contract Manufacturing Agreement
Web Development Agreement
Sole Selling Agreement
Underwriting Agreement
Mortgage Deed
Agreement Appointing A Common Arbitrator
Deed of Wakf-Alal-Aulad
Specific Power of Attorney
Foreign Collaboration Agreement Drafting
Joint Venture Agreement
Non- Disclosure Agreement
Franchise Agreement
Agreement to Sell Business
Vendor’s Agreement
Exclusive Distributorship Agreement
Shareholders Agreement
Consumer Complaint Letter
Power of Attorney
Company Name Change
Appointment of Auditors
Removal/Resignation of Director
GST Cancellation
GST LUT Letter of Undertaking
Conversion from Private Limited Company to Limited Liability Partnership (LLP)
Business Plan Preparation (Project Report)
Book-Keeping & Accounting
Payroll Setup & Processing
Trademark Rectification
Trademark Opposition
Trademark Renewal
Trademark Withdrawal in India
ESI Returns
PF Returns
भारत में कंपनी पंजीकरण / रजिस्ट्रेशन
Company Registration in India
TDS Returns Revision
Removal of Charge
Modification of Charge
Creation of Charge
MOA/AOA Printing
MOA/AOA Amendment
IEC Modification
Change of Registered Office Address
Producer Company
OPC to Private Limited Company
Conversion of Sole Proprietorship to OPC
Sole Proprietorship to Partnership firm
Conversion from Proprietorship to LLP
Conversion of Proprietorship to Private Limited Company
Conversion of Public Limited Company to Private Limited Company
Private Limited Company to Public Limited
Conversion of Partnership to Private Limited Company
Conversion of LLP to Private Limited Company
Conversion of Partnership to LLP (Limited Liability partnership)
Nidhi Company
Del Credere Agreement
Lease deed
FIND GST RATE, HSN CODE & SAC CODE
Public Limited Company
MCA Companies Fresh Start Scheme
MCA LLP Settlement Scheme 2020 (LSS 2020)
DIR 3 E KYC
A Quick guide to company registration in Bangalore
Apply for FSSAI license or Food license in India
Dormant Company Status Application
Trademark Registration in India
Conversion From Registered Partnership To LLP
Conversion From Registered Partnership To Private Limited Company
Change in Registered Office of LLP
LLC Annual Compliances in Wyoming, USA
LLC Annual Compliances in Florida, USA
LLC Annual Compliances in Delaware, USA
Company Registration in Indiana
Company Registration in California
Company Registration in New Mexico
Company Registration in New York
Company Registration in Texas
Company Registration in Wyoming
Company Registration in Florida
Company Registration in Delaware
Company Registration in USA
Company Registration in Malaysia
Company Registration in UK
Conversion of Private Limited Company to OPC
Opening a Branch in India by a Foreign Company
Nidhi Company Annual Filing
Trademark Registration in Mumbai
Private Limited Company registration in Mumbai
MicroFinance Company registration
Register a company in India from UK
Register a company in India from Germany
Register a company in India from France
Register a company in India from US
Register a company in India from Canada
Register a company in India from UAE
Register a company in India from Singapore
Register a company in India from Australia
Private Limited Company Registration
Private Limited Company Registration
Limited Liability Partnership Registration in Mumbai
Limited Liability Partnership
Secretarial Compliance Services
Revival of Struck Off Company
Limited Liability Partnership
Sole Proprietorship Firm Registration
Partnership
Hindu Undivided Family (HUF), HUF Deed
Conversion into LLP
One Person Company (OPC) Registration in Mumbai
One Person Company (OPC)
One Person Company (OPC)
One Person Company (OPC)
Non Profit Organization
Limited Liability Partnership
Indian Subsidiary
Company Registration in India- Know how to open a Company in India
Company Registration Process in India for Foreigner- Know How to Open a Company in India
International Trademark Registration Under Madrid Protocol
Trademark Registration – copy
Trademark Registration
Trademark Objections
Trademark Assignment
Copyright Application
Provisional Patent
Patent Search
Patent Registration
Surrender IEC License Online in India
Renewal of IEC License
IEC Registration in Mumbai
IEC Registration
Add/Remove a Partner in LLP
Change in DIN
Digital Signature
DIN Application
Conversion of Section 8 Company to Private Limited Company
DPIIT Startup Recognition certificate
E-Form Commencement of business certificate(form-20a)
Aadhaar Udyog Online Registration
New Form INC-22A
SSI/MSME/Udyog Aadhar Registration
PAN Application
TAN Application
GST Modification
GST Registration
EPF Registration
ESIC Registration
Change in Directorship
Increase in Authorized Capital
Change in LLP Agreement
LLP Name Change
Share Transfer & Transmission
Annual Filing For Trust in India
E-RCMC Registration under EPCES in India
APEDA (RCMC) Registration in India
ROC Annual Compliance for Producer Company
ROC Annual filing for Section 8 Company
ROC Annual filing for Public Limited Company
Annual Filing & Bookkeeping & Accounting Service for Partnership Firm
Private Limited Company Annual Filing
OPC Annual Filing
LLP Annual Filing
Strike Off Company
Strike Off LLP
Dissolution of Firms
Strike Off OPC
Appeal to CIT- File an Appeal to Commissioner to Income Tax
Reply to Scrutiny Assessment Notice u/s 143(3)
Reply to Income Tax Notice- Know How to Respond to IT Notices
Income Tax Returns
TDS Returns
GST Returns