India has become a base of businesses that are entrepreneurial with the number of individuals showing an inclination to have their own businesses. As a Chartered Accountant (CA), you are the key person who has to guide your clients through the maze of start-up regulations and at the same time be sure that their ventures follow the right legal and financial procedures. Whether of your intentions to set up your practice or to accompany clients in their start-ups through the Indian start-up ecosystem offering crucial services that assure operational smoothness and compliance is required. The fast-evolving field of India a lot more to be captured than just the understanding of services, along with laws, forms, and theories. So it was about the time to map it all down in a structured manner – the weeks went.

To find out the best start-up services in India for Chartered Accountants and business, let’s take a closer look at the services.

1. Company Registration and Establishing Structure (s)

To begin with the basics of business, Company registration is the first step when the entrepreneurs are choosing the right legal structure under which the business will be conducted. This will decide the company’s income taxation, how it can raise capital, it will also define the liability limit of the company.

Legal Structures: In India, start-ups can be formed as:

• Private Limited Companies: The most common choice is due to the fact that the liability is limited and the possibility to receive venture capital is there.
• Limited Liability Partnership (LLP): A mixed structure that combines the flexibility of a partnership with the advantages of liability that is limited.
• Sole Proprietorship: One fewer element of all of this is that individual at risk may be subjected to obligations of the business.
• Partnership Firms: These business models are suitable for smaller, non-venture companies. However, the partners bear personal liability for the company’s debts.

Relevant Laws & Forms:

The Companies Act, 2013 which deals with a company’s formation and keeping the liabilities limited has been enforced.

Moreover, the Limited Liability Partnership Act, 2008 is responsible for the establishment and breakdown of the LLPs.

Company registration along with SPICEe+ (INC-32) and DIR-3 necessary for Director Identification Number needs to be filed by companies.

Registration under Goods and Service Tax (Form GST REG-01) is important to your business if your business’s turnover has crossed a certain limit or your business is dealing with interstate sales.

2. Start-up Taxation Advisory and Compliance

Advising start-ups and doing the financials for them needs to be in compliance with tax laws in the ever-changing Indian start-up world. Complying with business tax rules is a critical factor in business success in the new era of Indian start-ups. A Tax Consultant is an expert in the field of tax and finance, and one of the jobs they need to perform relates to tax advice. A few of the vital tax services may include:

• GST (Goods and Services Tax): Ever since the implementation of the GST, businesses were transformed in 2017 with the introduction of this tax, the Indian business setting faced some problems. But start-ups on the other hand were able to understand and comply with the registration of their GST (if their turnover was more than the threshold). Companies operational in different sectors also had to make sure their invoice was in line with the CBEC Act. At the same time, they had to apply for GST to get their credit from the Government.
• GST Registration: If the turnover reaches the GST limit which is currently not more than ₹40 lakhs for goods and ₹20 lakhs for services, registration is mandatory.
• GST Returns: The lodgement of the regular GST returns such as GSTR-1, GSTR-3B, and annual returns is a compulsion.
• Income Tax Compliance: A start-up business income tax filing has certain complications. Firstly, start-ups have to file their returns under Section 139 of the Income Tax Act. However, the tax rate may be different for different entities, and they may also be eligible for the tax exemption.
• Start-up India Scheme: Businesses that undertake projects which have been approved by DIPPT will be given tax benefit under the new policy of Start-up India. The company will be exempted for three years under section 80-IAC of the Income Tax Act.
• Form 29B and Form 16 are the relevant tax return filing and tax audit reporting forms, respectively.
• Transfer Pricing: The statement is completely one aspect of transfer pricing compliance and happens if your start-up has international transactions under section 92 of the Income Tax Act is incorrect.

3.Funding and Financial Advisory Services

Raising capital is a crucial aspect of start-up growth. Many Indian start-ups have to deal with different kinds of funding which may include equity investment, venture capital, or debt. Furthermore, Chartered Accountants can assist the business owners in finding the funding for: Start-up India Seed Fund Scheme (SISFS) is a government project to provide financial supports to start-ups for product development, prototype testing, and market entry. Go alternatively to know them for seed funding.

Venture Capital & Private Equity Funding: Many start-ups in India are pursuing venture capital or private equity investments. Chartered accountants (CAs) can help entrepreneurs to grasp valuations, deal structuring, and tax effects of receiving funds.

Angel Investors and Crowd funding: Angel investment and crowd funding platforms like Seed Invest or Kato represent an additional source of funding for start-ups. The financial structuring and ensuring conformity with the provisions of the FEMA (Foreign Exchange Management Act) and SEBI (Securities and Exchange Board of India) are of utmost importance in these cases.

4. Legal Compliance and Intellectual Property Services

IP protection is a cornerstone of start-ups’ capabilities to safeguard their idea and innovation. As a CA, you should facilitate and instruct the clients to register and protect their IP by hiring IP attorneys who would be able to direct you in the process:

Trademark Registration: In the case that your start-up has come up with a unique logo, name, or slogan, the priority should be trademark registration. The registration may be done using the Trade Marks Act, 1999.

Patent and Copyright: Among other things, the registration of patents or copyrights for inventions or creative work is what matters most to technology start-ups. In the case with patents, protection is covered by the Patents Act, 1970, while copyrights are protected under the Copyright Act, 1957.

A regulated business having its asset base less than $1 dollar should not pay this tax in case it does not violate the conditions of section 3 of Republican Code 4-38-7 B.

The Companies Act, 2013 makes it mandatory for different companies to follow the corporate governance rules, which includes holding AGMs, filling AOC-4, and also the board compliance.

5.Incorporating CSR Initiatives

The concept of the Corporate Social Responsibility (CSR) is already well-known in India. It is primarily targeted at the start-ups who have grown rather big and are working towards the betterment of society. Under the Companies Act, 2013 regulations, the companies having a net worth of above ₹500 crores, or a turnover of ₹1,000 crores, or a net profit of ₹5 crores will have to spend at least 2% of their average net profits on CSR activities.

CSR compliance services can position you as the go-to company for business consultancy services that not only assists but also ensures clients of clear, sustainable, and socially responsible business practices.

Conclusion

As a Chartered Accountant in India, having a deep knowledge of the start-ups landscape is crucial to your success in helping your business or clients to achieve. Starting with company registration, tax advisory, funding, legal compliance, to managing intellectual property, the best solutions and expertise can support a start-up in the crowded space. Being informed about the latest laws such as the Companies Act, 2013, Income Tax Act, 1961, and GST regulations, and offering strategic advice, you can ensure not only the legality of your start-up but also its sustainable growth and success.

India is a very promising place for start-ups, and with the help of qualified pioneer Chartered Accountants, they can indeed be the makers of the future.

Written by
Sakshi Mangla
Articled Clerk