Compliance checklist for a new business

Step 1: choose the structure

The structure affects tax, liability and paperwork. Decide it with your CA before registering anything else.

Step 2: registrations at the start

• PAN for the business (firm, LLP, company). A proprietor uses their own PAN.
• Current bank account in the business name.
• GST registration if turnover is expected to cross the threshold, or if you make inter-state supplies of goods, sell through e-commerce platforms, or fall in other compulsory categories. Many businesses register voluntarily so B2B buyers can claim input credit. See GST registration threshold.
• TAN if you will deduct TDS — on salaries, rent, contractors or professionals.
• Udyam registration to be recognised as an MSME. See Udyam registration benefits.
• Shops and establishments registration under your state's law, for shops, offices and godowns.
• Professional tax registration in states that levy it.
• Trade licence from the local municipal body where required.

Step 3: trade-specific licences

Check with your trade association and CA — some licences take weeks.

Step 4: when you hire

• EPF registration is generally required once you reach 20 employees, and ESI once you reach 10 employees in covered areas. Thresholds and coverage can change, so confirm current rules.
• Deduct TDS on salaries above the taxable level.
• Professional tax deduction in states that levy it.
• Keep appointment letters, attendance and wage records as required by state labour laws.

The recurring compliance calendar

Dates differ by taxpayer type and can be extended. See the GST compliance calendar and confirm on gst.gov.in and incometax.gov.in.

Keep a compliance folder from day one

New owners often lose time hunting for a certificate when a bank, a large customer or a tender asks for it. Create one folder — physical and digital — with:

• Copies of every registration certificate: PAN, GST, Udyam, shop licence, trade licences, TAN.
• Partnership deed, LLP agreement or company incorporation documents.
• Rent agreement and electricity bill for each premises (often needed for registrations).
• Login details register kept securely by the owner — which portal, which mobile number and email it is linked to.
• Renewal dates for licences that expire, such as FSSAI, drug licence or trade licence.

Link every portal to a mobile number and email that the business controls, not to a staff member who may leave. Losing access to the GST or income-tax portal through an old staff phone number is a common and avoidable problem.

Habits that keep a new business compliant

• Keep business and personal money in separate accounts from day one.
• Raise a proper invoice for every sale; keep every purchase bill.
• Enter transactions weekly, not at year-end.
• Keep a one-page calendar of due dates on the wall or phone.
• Meet your CA quarterly. Note: from 1 April 2026 the Income-tax Act, 2025 applies, so older guides may quote outdated section numbers.

This is general information, not tax or legal advice.

Starting with Tally and Cashflow OS

Most CAs in India work with TallyPrime, so starting your books there keeps things simple. Cashflow OS connects to Tally through a small connector on the Tally PC and gives you the books on your phone and the web: sales, receipts, outstanding, P&L, Balance Sheet, and GSTR-1 and GSTR-3B views with JSON download for the GST portal. Filing itself is done on the portal. A 14-day free trial is available. See GST reports.