Trusted by 10,000+ Businesses

Corporate Compliance for Startups

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Service: End-to-end annual compliance for a startup, with the DPIIT benefits captured along the way.

Fees: Startup compliance starting from INR 9,999 per year (Exl GST and Govt. Charges).

Covers: AOC-4, MGT-7A, the audit and KYC, plus DPIIT, 80-IAC, angel tax relief and ESOP support.

For: DPIIT-recognised and recognition-ready startups that want compliance and benefits in one place.

Trusted by 10,000+ Businesses | 4.9 Google Rating | Offices in Pune, Mumbai, Delhi and Gurugram

Call +91 945 945 6700 Email Us WhatsApp Us

15+ YearsIndustry Experience

CA & CSCertified Experts

4.9

Based on 500+ reviews

Get Free Consultation

Talk to a CA/CS expert today

Full Name

Phone Number

City

Service Needed

Our team will get back to you shortly. No spam.

Real Stories from Real People

Hear how teams across industries use Patron to save time, cut costs, & stay in control.

I've had an outstanding experience working with my CA - Patron Accounting. Their professionalism, attention to detail, and timely communication made the entire process seamless and stress-free.

I'm glad that I was able to connect with Patron. They took the minimum time to do the calculations based on the details provided by me and were really helpful throughout the process.

Really a fantastic experience with Patron Accounting especially Shubham, he was extremely great. Knowledgeable person who deserves the 5 star for smooth handling of all documentation.

Patron Accounting gives the best service related to all account handling of our firm. I am blessed and extremely happy that Patron Accounting assigned us a dedicated point of contact.

I have called Patron to file ITR for my 5 family members. I worked with Shubham Junjunwala and Amin Jain. It was a smooth process. They understand basics very well and respond promptly.

From the very beginning, their approach has been highly professional, prompt, and solution-oriented. Every interaction reflected their deep knowledge and commitment to helping clients.

Very proficient and professional staff. Do fantastic job and instant response. Strongly recommended engaging them for all accounting needs specially for startups and growing businesses.

I contacted them to file the ITR. Shubham was the POC for me and he was really very professional and giving prompt responses. Highly recommend them for tax and compliance work.

Sunny Ashpal

Director - Demandify Media

Anjanay Srivastava

Founder - Hunarsource Consulting

10,000+Businesses ServedGST compliance and litigation support across India.

15+Years ExperienceDeep expertise in IP registration, GST & business compliance.

50,000+Documents FiledReturns, appeals, and filings handled accurately.

4.9★Client RatingTrusted by entrepreneurs, startups, and growing businesses.

ISO CertifiedProfessional standards and documented processes.

SSL SecureYour financial and business data is fully protected.

Startup Compliance: Overview and Quick Summary

📌 TL;DR - Startup Compliance Services at a Glance

A startup is usually a small private company, so it files AOC-4, MGT-7A, the audit and director KYC like any company. On top of that sits the startup overlay, DPIIT recognition, which unlocks the Section 80-IAC tax holiday, a 100 percent profit deduction for any three of the first ten years, claimed through a separate IMB certificate and only by a Pvt Ltd or LLP. Angel tax under Section 56(2)(viib) is abolished for new raises from April 2025, and startups run ESOPs on a favourable regime. Recognition does not remove ROC compliance.

Item	What it means
ROC filings	AOC-4, MGT-7A, audit, KYC, as a small company
DPIIT recognition	Free, the gateway to startup benefits
Section 80-IAC	100% holiday, 3 of 10 years, IMB certificate
Angel tax 56(2)(viib)	Abolished for new raises from 1 Apr 2025
ESOP	Favourable regime, tax deferral for employees
Eligible entity	Pvt Ltd or LLP for 80-IAC, not OPC
Cost	From INR 9,999 per year

This page is the complete picture of corporate compliance for a startup, the routine company filings plus the DPIIT benefits worth capturing, and it routes you to the recognition and ESOP services. When you want compliance and benefits handled on one retainer, our team runs it for you. To get DPIIT-recognised, see our startup registration service.

The underlying ROC compliance runs through our private limited company compliance service, and the employee stock options through our ESOP management and compliance services.

What Is Startup Compliance?

Startup compliance is the combination of the routine company compliance a startup must do and the startup-specific benefits it should capture. Because most startups are small private companies, the routine side is the familiar set of ROC filings, the audit and director KYC. The distinctive side is the layer of benefits that comes with DPIIT recognition under the Startup India framework.

The defining feature is that compliance and benefits run together. Staying compliant keeps the company clean, while recognition and the right filings unlock the tax holiday, the angel tax relief and the ESOP advantages, so a startup that only files but never claims, or claims but lets compliance slip, leaves value on the table or takes on risk.

Key Terms for Startup Compliance:

DPIIT recognition: The Startup India recognition that unlocks the startup benefits.
Section 80-IAC: The 100 percent income tax holiday for three of the first ten years.
IMB certificate: The separate Inter-Ministerial Board approval that actually activates 80-IAC.
Angel tax: The former Section 56(2)(viib) levy on share premium, now abolished for new raises.
ESOP: Employee stock options, on which startup employees get a tax deferral.

Tax Holiday 80-IAC

The Two Sides of Startup Compliance

Startup compliance has a routine side and a benefits side, and a good engagement runs both.

The Routine Compliance Side

As a small private company, a startup files AOC-4 and the abridged MGT-7A, has its accounts audited, holds its board meetings and AGM, completes director KYC, and files its income tax return, exactly like any company of its size. Recognition does not remove any of this.

The Benefits Side

On top, the startup captures its DPIIT benefits, securing recognition, applying for the 80-IAC holiday through the IMB where it qualifies, relying on the angel tax abolition for new raises, running its ESOP on the favourable regime, and using the self-certification, IPR and funding benefits.

The Startup Benefits Map

These are the benefits a recognised startup should be capturing.

Section 80-IAC holiday: A 100 percent deduction of profits for any three consecutive years within the first ten, for a Pvt Ltd or LLP, via a separate IMB certificate, with the incorporation window extended to 1 April 2030.
Angel tax relief: Section 56(2)(viib) is abolished for share issues from 1 April 2025, so new fundraising rounds are free of it, though prior-year exposure must still be managed.
ESOP advantages: Startups run ESOPs to attract talent, and employees of eligible startups get a deferral of the tax on exercise.
Self-certification: Recognised startups self-certify under several labour and environmental laws, reducing inspections.
IPR and funding: A rebate on patent and trademark fees, and access to the Fund of Funds and procurement relaxations.

What the Startup Retainer Covers

Service	What We Do
ROC Stack	AOC-4, MGT-7A and the full ROC stack for the company.
Audit and ITR	Statutory audit coordination and the income tax return.
DPIIT and 80-IAC	DPIIT recognition and Section 80-IAC tax holiday support through the IMB.
Angel Tax Position	The angel tax position and the documentation that protects prior-year raises.
ESOP Support	ESOP scheme and compliance support on the favourable startup regime.
KYC, Registers and Events	Director KYC, the statutory registers and the event-based filings.

Our Process

How Startup Compliance Runs Through the Year

How Patron runs the routine filings and captures the DPIIT benefits together on one calendar.

Step 1

Set the Calendar

We map the ROC, tax and benefit deadlines for your startup at the start of the year.

ROC + tax Benefit timing

Calendar 01

Step 2

Secure Recognition

Where not yet recognised, we help obtain DPIIT recognition and prepare the 80-IAC application.

DPIIT 80-IAC prep

Recognise 02

Step 3

Run the Routine Filings

We coordinate the audit and file AOC-4, MGT-7A, ADT-1 and KYC after the AGM.

AOC-4 / MGT-7A Post-AGM

Filings 03

Step 4

Capture the Benefits

We claim the 80-IAC holiday where eligible, manage the angel tax position, and support the ESOP.

80-IAC claimed Angel tax

Benefits 04

Step 5

Keep Documentation

We maintain the valuation, board and DPIIT records that protect prior raises and the holiday.

Valuation DPIIT records

Document 05

Step 6

Handle Events

We file the event-based forms on funding rounds, allotments and changes as they arise.

Funding rounds Allotments

Events 06

Information Required for Startup Compliance

Incorporation details and date.
DPIIT recognition and IMB status, if any.
Financial statements and books for the year.
Funding round and valuation documents.
ESOP scheme details, if any.
Director and shareholder details.

Need the full checklist? We share a tailored startup compliance checklist when you engage us.

Common Startup Compliance Challenges and Solutions

Challenge	Impact	How Patron Accounting Solves It
Assuming recognition gives the tax holiday	DPIIT recognition alone does not give the 80-IAC holiday, a separate IMB certificate is needed, and only a Pvt Ltd or LLP qualifies. We prepare and pursue the IMB application.
Letting routine compliance slip	Founders focused on growth often miss the ROC filings, which still apply. We run the routine compliance so the company stays clean.
Ignoring prior-year angel tax	Angel tax is gone for new raises, but old assessments remain a risk. We keep the documentation to defend any prior-year query.
Unstructured ESOPs	A poorly framed ESOP creates tax and compliance issues. We structure and administer the scheme correctly.

Startup Compliance Fees

Fee Component	Amount
Patron Accounting Professional Fees (annual retainer)	Starting from INR 9,999 per year (Exl GST and Govt. Charges)
Scope of the retainer	Routine compliance (AOC-4, MGT-7A, audit coordination, ADT-1, KYC) with DPIIT recognition support, the 80-IAC position, angel tax documentation and ESOP support
Statutory audit fee and the IMB application for the tax holiday	Confirmed as part of the engagement scope
Detailed ESOP scheme design and prior-year angel tax defence	Confirmed as part of the engagement scope

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

The statutory audit fee, the IMB application for the tax holiday, a detailed ESOP scheme design, and the defence of any prior-year angel tax assessment are confirmed as part of the engagement scope, since the work depends on the startup’s stage and funding. Contact us for a detailed quote.

Get a free Startup Compliance consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

The Startup Compliance Year

Stage	Estimated Timeline
Routine, after year end	AGM within six months; AOC-4 and the annual return after it
Routine, annual	Director KYC by 30 September and the income tax return in its window
Benefit, recognition	Secure DPIIT recognition early, not tied to a fixed date
Benefit, 80-IAC	Apply for the IMB certificate in good time before a profitable year
Benefit, ongoing	Keep fundraising documentation as rounds happen and administer the ESOP

A startup’s year blends the company calendar with the benefit milestones. The routine filings follow the usual cycle, the AGM within six months of the year end, AOC-4 and the annual return after it, director KYC by 30 September, and the income tax return in its window. The benefit side is less about fixed dates and more about timing, securing DPIIT recognition early, applying for the 80-IAC holiday in good time before a profitable year, keeping fundraising documentation as rounds happen, and administering the ESOP through the year. Running both together, on one calendar, is what keeps a startup compliant and fully benefited.

Key Benefits

Why Use a Startup Compliance Retainer

Routine Filings and Benefits in One Place

The ROC filings and the DPIIT benefits are run together by one team, so the company stays clean and the reliefs are captured.

The 80-IAC Holiday Actually Claimed

The Section 80-IAC tax holiday is pursued through the IMB and claimed where eligible, not left on the table.

Angel Tax Position Documented

The angel tax position is documented, so prior-year raises are defensible even though new raises are free of the levy.

ESOP Structured and Compliant

The ESOP is structured and administered correctly under company law, with the employee tax deferral preserved.

Company Kept Clean and Penalty-Safe

The routine filings are kept current so the company avoids penalties and the directors avoid disqualification risk.

Qualified CA and CS Team

Handled by a qualified CA and CS team experienced in the DPIIT and Startup India regime.

Trusted by Startups Across India

10,000+ Businesses Served | 4.9 Google Rating | 50,000+ Documents Filed | 15+ Years

"Patron runs our filings and got us the 80-IAC holiday through the IMB, which most of our peers never claimed." - Founder, DPIIT startup, Bengaluru.

"They set up our ESOP and keep our compliance and DPIIT documentation in order for our next round." - Co-founder, startup, Pune.

Trusted by leading brands including Hyundai, Asian Paints and Bridgestone for accounting and compliance support.

With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves startups across India - both in-person and remotely.

Startup Compliance Compared with an Ordinary Company

Factor	Recognised Startup	Ordinary Small Company
ROC filings	Same, AOC-4 and MGT-7A	AOC-4 and MGT-7A
Tax holiday	80-IAC, if IMB approved	Not available
Angel tax	Abolished for new raises	Abolished for new raises
Extra benefits	Self-cert, IPR, funding	None

Startup Services

This hub routes to the services a startup needs alongside its compliance.

Startup Registration for DPIIT recognition and the 80-IAC application.
ESOP Management and Compliance Services for the ESOP scheme and administration.
Private Limited Company Compliance for the underlying ROC compliance.
Statutory Audit for the annual audit.
Director KYC for the annual director KYC.
Compliance Calendar to track every deadline.

For incorporating the startup in the first place, see our private limited company registration service, which this engagement follows on from.

Legal and Tax Framework

DPIIT recognition: Recognition under the Startup India framework is available, free, on the Startup India portal to a private limited company, LLP, partnership or cooperative society that is less than ten years old, has turnover below 100 crore in every year since incorporation, is an original entity rather than a split or reconstruction, and works towards innovation, development or scalability, and it is the gateway to the startup benefits, although recognition by itself does not grant the tax holiday.

Section 80-IAC tax holiday: Section 80-IAC of the Income-tax Act allows an eligible startup a deduction of 100 percent of its profits for any three consecutive financial years within the first ten years from incorporation, available only to a private limited company or an LLP, not an OPC, subject to a separate certificate from the Inter-Ministerial Board obtained by filing Form 1, with the turnover not exceeding 100 crore, and the Union Budget 2025-26 extended the eligibility to startups incorporated up to 1 April 2030, with the Board’s review capped at 120 days.

Angel tax and ESOPs: The angel tax under Section 56(2)(viib), which taxed share premium received above fair market value, was abolished with effect from 1 April 2025 for all classes of investors by the Finance Act, 2024, so new fundraising rounds are free of it, though assessments for years before FY 2025-26 remain a live risk and require supporting documentation, while startups commonly issue employee stock options, with employees of eligible startups entitled to a deferral of the tax otherwise payable on exercise.

The compliance underneath: None of these benefits removes the routine compliance, a startup that is a small private company continues to hold its board meetings and AGM, have its accounts audited, and file AOC-4, the abridged annual return MGT-7A, ADT-1 and DIR-3 KYC, and its income tax return, with the recognition and tax benefits sitting on top of, not in place of, this company compliance.

Refer to the Startup India portal for recognition, the MCA portal for the company forms, and the Income Tax portal for the tax filings.

What compliance does a startup have to do?

A startup is usually a small private company, so it does the normal company compliance, holding board meetings and an AGM, having its accounts audited, and filing AOC-4, the abridged annual return MGT-7A, ADT-1 and DIR-3 KYC, along with its income tax return. On top of this it manages its startup benefits, maintaining DPIIT recognition, claiming the 80-IAC tax holiday where eligible, handling its angel tax position and administering its ESOP. DPIIT recognition does not remove any of the routine compliance.

What is the Section 80-IAC tax holiday?

Section 80-IAC gives an eligible startup a deduction of 100 percent of its profits for any three consecutive years within the first ten years from incorporation, a significant relief in its early profitable years. It is available only to a private limited company or an LLP, not an OPC, and DPIIT recognition alone is not enough, the startup must obtain a separate certificate from the Inter-Ministerial Board by filing Form 1. The eligibility window now covers startups incorporated up to 1 April 2030.

Is angel tax still applicable to startups?

No, not on new fundraising. Angel tax under Section 56(2)(viib), which taxed share premium received above fair market value, was abolished with effect from 1 April 2025, FY 2025-26, for all classes of investors, domestic and foreign, by the Finance Act, 2024. So new rounds are free of it. However, assessments for years before FY 2025-26 can still be opened, so a startup that raised earlier should keep its valuation reports, board resolutions and DPIIT documentation to defend any prior-year query.

Does DPIIT recognition reduce a startup’s compliance?

Not the routine company compliance. DPIIT recognition unlocks benefits such as the 80-IAC tax holiday, the angel tax relief, self-certification under certain labour and environmental laws, IPR fee rebates and funding access, but a recognised startup that is a company still files AOC-4, MGT-7A, ADT-1 and DIR-3 KYC, holds its meetings, and has its accounts audited. The self-certification reduces some inspections, but the core ROC and tax filings continue regardless of recognition.

How does a startup ESOP work for compliance?

Startups commonly issue employee stock options to attract and retain talent, and the scheme must be properly framed and administered under the company law, with the grant, vesting and exercise documented and the necessary approvals and filings made. For tax, employees of eligible DPIIT-recognised startups benefit from a deferral of the tax otherwise payable when the options are exercised, easing the cash burden on employees, which is one reason the startup regime is considered ESOP-friendly.

Which entity type is best for a startup that wants the tax holiday?

To claim the Section 80-IAC tax holiday, the startup must be a private limited company or an LLP, as an OPC and a partnership cannot claim it. Most startups that intend to raise equity choose a private limited company, since it suits investors and ESOPs, while an LLP can suit a services startup not raising external equity. A founder intending to claim the holiday should incorporate as a Pvt Ltd or LLP from the outset, rather than convert later.

When should a startup apply for the 80-IAC holiday?

A startup should secure DPIIT recognition early and prepare its 80-IAC application well before it expects its first profitable year, because the holiday covers any three consecutive years within the first ten and needs a separate Inter-Ministerial Board certificate that takes time and a strong innovation narrative. Leaving it until profits arrive risks losing eligible years. We recommend getting recognised early and preparing the IMB application in advance, so the holiday is ready to claim.

Can you handle both compliance and startup benefits?

Yes. Our startup compliance retainer runs both sides, the routine company compliance of AOC-4, MGT-7A, the audit, ADT-1 and KYC, and the benefit side of DPIIT recognition, the 80-IAC application through the IMB, the angel tax position and documentation, and ESOP support. We keep the company clean and make sure the benefits the startup is entitled to are actually captured, all from a starting fee of 9,999 rupees a year, with the IMB and ESOP design scoped as needed.

Startup ki compliance kya hai?

Startup ko small company ki tarah AOC-4, MGT-7A, audit aur KYC karni hoti hai, aur saath me DPIIT recognition, 80-IAC tax holiday, angel tax relief aur ESOP ke benefits bhi manage karne hote hain.

80-IAC tax holiday kya hai?

80-IAC eligible startup ko pehle 10 saal me kisi bhi 3 lagataar saal ke liye 100 percent profit par tax chhoot deta hai, sirf Pvt Ltd ya LLP ko, IMB certificate ke saath.

Quick Answers

Routine filings? AOC-4, MGT-7A, audit, KYC.

Tax holiday? 80-IAC, via IMB, Pvt Ltd or LLP.

Angel tax? Abolished for new raises from Apr 2025.

ESOP? Favourable regime, employee tax deferral.

Why It Pays to Get This Right

For a startup, compliance and benefits are two sides of the same coin. Miss the routine filings and the company picks up penalties and disqualification risk just like any other. Miss the benefit steps, recognition, the IMB certificate, the timing of the 80-IAC claim, and the startup quietly loses reliefs worth far more than the compliance cost. Because the benefit windows are time-sensitive and the routine deadlines are fixed, running both on one tracked engagement is what keeps a startup clean and fully benefited.

Set up your startup compliance - Call +91 945 945 6700 or WhatsApp us. We respond within 2 hours.

Set Up Startup Compliance with Patron Accounting

Corporate compliance for a startup is the routine company compliance of a small private company, AOC-4, MGT-7A, the audit and KYC, run together with the startup overlay, DPIIT recognition, the Section 80-IAC tax holiday claimed through the IMB, the angel tax relief on new raises, and the ESOP-friendly regime.

Recognition unlocks the benefits but does not remove the compliance, and the benefit windows are time-sensitive. This page maps both and routes you to each service. Patron Accounting, with a qualified CA and CS team and offices in Pune, Mumbai, Delhi and Gurugram, runs startup compliance and benefits together on a single retainer from 9,999 rupees a year.

10,000+ Businesses | 4.9 Rating | 50,000+ Documents Filed | 15+ Years. Book a free consultation today.

📞 Call +91 945 945 6700 💬 WhatsApp Us ✉️ Email Us

Book a Free Consultation - No Obligation.

Startup Compliance Support Across India

In-person and remote startup compliance and benefit support from our offices in Pune, Mumbai, Delhi and Gurugram.

Startup Services

Recognition, ESOP, ROC and audit

Content Created: 3 June 2026 | Last Updated: | Next Review: 4 September 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed at least yearly and updated whenever the DPIIT recognition rules, the Section 80-IAC holiday and its incorporation window, the angel tax position under Section 56(2)(viib), the ESOP tax regime, or the underlying company compliance change. Freshness Tier 1.

AY 2026-27 ITR filing is live - get your taxes filed accurately by CAs. CA-Assisted ITR Filing Open →