Startups
Formation, funding and growth compliance for a startup
Statutory positions a founder runs into from incorporation through a funding round and the first years of growth, set out as neutral explanation rather than as advice.
This section covers nine questions a founder typically asks, grouped into forming the entity, raising a funding round, and early growth compliance. Each page states the statutory basis for what it says, and each position has been checked by a partner against its primary source. Nothing here is a substitute for engaging the firm on a specific transaction.
Form: choosing and registering the entity
Incorporation: company, LLP or OPC
How a private limited company, an LLP and a one person company compare, and what the SPICe+ process involves.
FormDPIIT recognition
Who qualifies for DPIIT recognition under Startup India, and the benefits recognition unlocks.
FormSection 80-IAC tax holiday
Eligibility for the section 80-IAC tax holiday, the Inter-Ministerial Board process, and common reasons for refusal.
Fund: raising and reporting a funding round
Share valuation: Rule 11UA
The valuation methods available under Rule 11UA, and who is authorised to certify a startup's share valuation.
FundFEMA reporting: FC-GPR and FC-TRS
How foreign investment is reported to the Reserve Bank of India, the forms involved and the cost of filing late.
FundConvertible instruments
How convertible notes, compulsorily convertible preference shares and SAFE-style instruments are treated under Indian law.
Grow: compliance for the first years after funding
ESOP taxation
How an employee stock option is taxed at grant, exercise and sale, and the deferral available to eligible startups.
GrowGST on SaaS exports
Whether GST applies to software sold outside India, the letter of undertaking route, and refund of input tax credit.
GrowVirtual CFO
What an outsourced finance function covers for a funded company, and when a growing business typically needs one.
Is this section a substitute for advice from the firm?
No. It explains the statutory framework a founder generally encounters. A general explanation cannot account for the facts of a particular transaction, so confirm the position with the firm before acting on it.
How do you know what is on these pages is right?
Every claim on these pages is recorded as a fact with the provision it comes from, and a partner checks each one against the primary source before it is marked verified. The source is shown alongside the claim so you can read it yourself.
Does this section cover every stage of a startup's life?
It covers formation, funding and early growth. A later stage, such as an exit or listing, is not yet covered on this site.
Where can a founder go for a specific compliance date or threshold?
The compliance tools give a quick, factual answer to recurring questions on tax audit applicability, advance tax instalments and due dates.
For a quick, factual answer to a specific compliance question, use the compliance tools. For an outsourced finance function run from our offices, see accounting and outsourcing.
Lalit Mohan Tyagi & Co. states these positions for information. Last reviewed August 2026.