Many founders register a company and start selling, and only think about legal paperwork when a co-founder leaves, an investor asks for documents or a client refuses to pay. Getting the basics right at the start is far cheaper than fixing them later. Here is a practical legal checklist for a new business in India.

In short (Hinglish): Company banane ke baad founders agreement, employee contracts, NDA, IP assignment, website policies aur compliance calendar sabse pehle taiyaar karein. Baad mein jhagda ya investor due diligence mein yahi kagaz kaam aate hain.

1. Choose the right structure

  • Private Limited Company: preferred if you plan to raise investment or issue ESOPs.
  • LLP: lighter compliance, suits professional and service firms that do not need equity investors.
  • One Person Company (OPC): for a single founder who wants limited liability.
  • Partnership or proprietorship: simplest, but the owners' personal liability is not limited.

2. Registrations

  • Incorporation through the MCA portal (PAN and TAN are issued with it)
  • Bank account in the company's name
  • GST registration when your turnover crosses the threshold or your type of business requires it
  • Shops and Establishments registration under the state law where you have an office
  • Udyam (MSME) registration, which helps with delayed-payment protection
  • DPIIT Startup India recognition, if you qualify

3. Founder documents

  • Founders' or shareholders' agreement: equity split, vesting, roles, decision-making, what happens if a founder leaves, and transfer restrictions.
  • IP assignment: anything founders created before incorporation (code, designs, brand) should be assigned to the company.
  • Trademark application for your brand name and logo before you spend on marketing.

4. Team documents

  • Appointment letters or employment contracts with clear duties, pay, notice period and confidentiality
  • Consultant and freelancer agreements with IP assignment clauses
  • HR policies: leave, code of conduct, and a POSH policy with an Internal Committee once you have 10 or more employees
  • An ESOP plan, if you intend to give equity to employees

5. Customer and vendor documents

  • Standard service agreement or terms of sale for your customers
  • Vendor agreements covering scope, payment, delivery, warranties and liability
  • NDAs for discussions with partners, investors and vendors
  • Website terms of use and a privacy policy that reflects the Digital Personal Data Protection Act, 2023

6. Compliance calendar

For a private limited company, keep a calendar that covers at least:

  • Appointment of the first auditor within 30 days of incorporation
  • Declaration of commencement of business within 180 days of incorporation
  • Board meetings as required for your type of company, with proper minutes
  • Annual filings with the Registrar of Companies (financial statements and annual return)
  • Annual KYC of directors
  • GST returns, TDS returns and income tax return, if applicable
  • PF and ESI registration and monthly filings once you reach the applicable employee thresholds

7. Keep everything in one place

Keep signed copies of all agreements, board resolutions and filings in a single folder. Investors and banks will ask for them during due diligence, and missing documents can delay a deal.

The LexSphere supports startups and growing companies with corporate legal advisory, contracts and compliance, including ongoing retainers. See our startup services or corporate legal advisory.

This article is general information, not legal advice. Thresholds and filing requirements depend on your business and can change.