New Business: First-Year Compliance Checklist (India)

Last updated: 27 June 2026 · For new proprietorships, partnerships, LLPs and private limited companies. Confirm each item on the relevant government portal.

In its first year, a new Indian business must handle three layers of compliance: one-time registrations (PAN, GST, Udyam, EPF/ESI where applicable), recurring filings (GST returns, TDS, EPF/ESI), and annual filings (ITR, and for companies/LLPs, ROC forms). What applies depends on your entity type and turnover — a proprietor below the GST threshold has far fewer obligations than a private limited company.

Key takeaways

Register first: PAN/TAN, GST (if you cross the threshold or supply inter-state), Udyam (free, for MSME benefits), and EPF/ESI once you hit employee counts.
GST thresholds: registration at ₹40 lakh turnover for goods, ₹20 lakh for services (lower in special-category states); inter-state and e-commerce sellers must register regardless.
Employer triggers: EPF at 20 employees, ESI typically at 10 employees (gross wages ≤ ₹21,000 covered).
Companies & LLPs have extra annual ROC filings — AOC-4, MGT-7, DPT-3 (companies); Form 11, Form 8 (LLPs).
The Labour Codes are in force (since 21 November 2025): wages must be ≥ 50% of CTC and full-and-final settlement is due within 2 working days of exit.
Section 43B(h): pay Micro/Small Udyam-registered suppliers within 15/45 days, or the expense deduction is disallowed.

Fact box. A new business needs GST registration once turnover crosses ₹40 lakh (goods) or ₹20 lakh (services) in normal states — but inter-state suppliers and e-commerce sellers must register from day one, regardless of turnover.

What registrations does a new business need?

Start with the registrations that unlock the rest. Some are universal; others depend on turnover and headcount.

Registration	When you need it	Where
PAN & TAN	PAN for the entity always; TAN once you deduct TDS	incometax.gov.in
GST registration	Turnover > ₹40 lakh goods / ₹20 lakh services; or inter-state / e-commerce supply	gst.gov.in
Udyam (MSME)	Free, recommended for any MSME — unlocks 43B(h) protection and benefits	udyamregistration.gov.in
EPF	When you employ 20 or more people	epfindia.gov.in
ESI	Typically 10 or more employees (gross ≤ ₹21,000 covered)	esic.gov.in
Professional Tax	If your state levies PT (e.g. Maharashtra, Karnataka, WB)	State PT department
Shops & Establishment	Most states require it for any commercial premises	State labour portal

Fact box. Udyam registration is free, online and self-declared at udyamregistration.gov.in (Aadhaar + PAN + GSTIN). It is what brings a Micro/Small supplier under the Section 43B(h) 45-day payment protection — so registering early matters.

What recurring filings apply once registered?

After registration, monthly and quarterly filings begin. Track only the ones tied to your registrations.

GST: GSTR-1 (11th) and GSTR-3B (20th) monthly, or quarterly under QRMP if turnover ≤ ₹5 crore.
TDS: deposit by the 7th of the next month; quarterly returns (24Q/26Q/27Q) by 31 Jul / 31 Oct / 31 Jan / 31 May.
EPF & ESI: payment and ECR by the 15th of the following month.
Advance tax: four instalments (15 Jun / 15 Sep / 15 Dec / 15 Mar) if your tax liability is ₹10,000 or more.

What annual filings apply by entity type?

Annual obligations differ sharply between a proprietor and a company. Companies and LLPs carry the heaviest load.

Entity	Annual filings
Proprietor	ITR (ITR-3, or ITR-4 if presumptive); GSTR-9 if turnover > ₹2 cr
Partnership firm	ITR-5; GSTR-9 if applicable
LLP	ITR-5; Form 11 (30 May); Form 8 (30 Oct); audit if turnover/contribution thresholds crossed
Private limited company	ITR-6; AOC-4 (~30 Oct); MGT-7/7A (~29 Nov); DPT-3 (30 Jun); DIR-3 KYC (now triennial); ADT-1 (auditor appointment)

Note: LLP late filing is ₹100/day per form with no cap, so missed ROC dates compound quickly. ROC late filing for companies is also ₹100/day per form.

What employment-law steps apply if I hire staff?

The four Labour Codes have been in force since 21 November 2025, so even a small employer must build a compliant salary structure.

Wages ≥ 50% of CTC: basic + DA + retaining allowance must be at least half of total remuneration; this raises PF, gratuity and bonus bases.
Full & final settlement within 2 working days of an employee leaving.
EPF at 12% (employee and employer; ₹15,000 wage ceiling); ESI at 0.75% employee / 3.25% employer (₹21,000 threshold).
TDS on salary under Section 192; issue Form 16 by 15 June following the financial year.

How Ankeshan helps: Ankeshan builds your first-year calendar from your entity type, turnover and headcount, and reminds you before each registration deadline and recurring filing — inside Excel. (Launching soon — join the waitlist.)

Frequently asked questions

When must a new business register for GST? Once turnover crosses ₹40 lakh for goods or ₹20 lakh for services (lower in special-category states). Inter-state suppliers and e-commerce sellers must register from the start, regardless of turnover.

Is Udyam registration mandatory for a new business? It is not legally mandatory, but it is free and strongly recommended — it brings Micro/Small suppliers under the Section 43B(h) 45-day payment protection and unlocks MSME benefits.

When does a new employer need EPF and ESI? EPF applies at 20 or more employees; ESI typically at 10 or more (covering employees with gross wages up to ₹21,000). Some states notify lower ESI thresholds.

What extra compliance do companies have versus proprietors? Companies file annual ROC forms — AOC-4, MGT-7/7A, DPT-3 and DIR-3 KYC — plus ITR-6, on top of GST and TDS. Proprietors mainly file ITR and applicable GST returns.

What is the Section 43B(h) rule new businesses should know? If you buy from a Micro or Small Udyam-registered supplier, pay within 15 days (no agreement) or 45 days (with agreement). Otherwise the expense deduction is disallowed until you actually pay.

Sources

GST registration thresholds — gst.gov.in, cbic-gst.gov.in.
Income tax, TDS and ITR forms — incometax.gov.in.
EPF — epfindia.gov.in · ESI — esic.gov.in.
MCA / ROC forms — mca.gov.in · Udyam — udyamregistration.gov.in.
Ministry of Labour — Labour Codes (effective 21 November 2025) — labour.gov.in.

General information, not professional advice. Verify each requirement on the official portal for your specific case. Reviewed by a Chartered Accountant; last updated 27 June 2026.