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Startup Legal Compliance Checklist
Use this checklist to ensure your startup has addressed the fundamental legal requirements at each stage of growth.
Phase 1: Incorporation & Foundation
Entity Formation
- Choose appropriate entity structure (Private Limited recommended for funding)
- Register company with Registrar of Companies (ROC)
- Obtain Certificate of Incorporation
- Apply for PAN and TAN
- Open company bank account
- Register for GST (if applicable)
- Obtain Shops & Establishment registration
Founder Documentation
- Execute Founders' Agreement covering:
- Roles and responsibilities
- Equity split and vesting schedule
- IP assignment to company
- Non-compete and non-solicitation terms
- Decision-making process
- Exit provisions
- Complete IP Assignment Agreements (all founders)
- Document any pre-existing IP and licensing terms
Governance Setup
- Adopt Articles of Association
- Hold first Board meeting and document minutes
- Appoint statutory auditor
- Establish registered office
Phase 2: Operations & Team
Employment Compliance
- Draft standard employment agreement template
- Create employee handbook covering:
- Leave policies
- Code of conduct
- Confidentiality obligations
- Grievance procedures
- Establish NDA/Confidentiality agreements for employees
- Register under applicable labor laws:
- EPF (if 20+ employees)
- ESIC (if applicable)
- Professional Tax
- Shops & Establishments Act
POSH Compliance (10+ employees)
- Constitute Internal Complaints Committee
- Draft and display POSH policy
- Conduct awareness training
- File annual returns
Contractor & Vendor Management
- Standard contractor/consultant agreement template
- Vendor agreements with appropriate terms
- NDAs for all third parties with access to confidential information
Phase 3: Intellectual Property
Trademark Protection
- Conduct trademark search for brand name
- File trademark application (relevant classes)
- Document brand usage guidelines
Technology & Software
- Ensure all code is developed under work-for-hire or assigned
- Document open-source usage and license compliance
- Maintain software bill of materials
Trade Secrets
- Identify and document confidential information
- Implement access controls
- Include confidentiality provisions in all agreements
Phase 4: Customer & Commercial
Terms of Service & Privacy
- Draft Terms of Service/Use
- Create Privacy Policy (DPDPA-compliant)
- Implement cookie consent mechanism (if applicable)
- Establish data retention policy
Commercial Agreements
- Standard customer/client agreement template
- SaaS/subscription agreement (if applicable)
- Partnership/reseller agreement templates
Phase 5: Fundraising Readiness
ESOP Setup
- Board and shareholder approval for ESOP pool
- Draft ESOP scheme document
- Create grant letter template
- Establish vesting schedule framework
- FMV valuation from registered valuer
Due Diligence Preparation
- Organize all corporate documents
- Compile contract register
- Document all material litigation
- Prepare cap table
- Gather tax compliance certificates
- Collect regulatory approvals/licenses
Investment Documentation
- Understand term sheet terms
- Prepare for:
- Share Subscription Agreement
- Shareholders' Agreement
- Board reconstitution
Ongoing Compliance Calendar
Monthly
- GST returns (if applicable)
- TDS payments and returns
Quarterly
- Board meetings (minimum)
- EPF/ESIC payments
Annually
- Annual General Meeting
- File annual returns with ROC
- Renew licenses and registrations
- POSH annual report
- Statutory audit
- Income tax returns
This checklist provides general guidance. Consult RevLaw for advice specific to your startup's situation.