For Startups in India, there are several key accounting compliance that need to be followed to ensure legal and regulatory compliance. On that we consulted Finsmart Accounting - trusted for outsourced accounting services - to share a list of accounting compliances every startup should pay heed to in 2023. Read on!

Companies Act, 2013 compliance: Startups need to comply with various provisions of the companies Act, 2013 including maintaining proper books of accounts, conducting an annual general meeting, filing financial statements, and adhering the accounting standards. 

Tax Registrations: Startups are required to obtain certain tax registrations such as a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and Goods and Service Tax (GST) registration, applicable, based on their turnover. 

Accounting Standards: Startups need to follow the accounting standards issued by the institute of Chartered Accountants of India (ICAI). These standards include the measurement, recognition, presentation, and disclosure requirements for financial statements. 

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Bookkeeping and Record-Keeping: Startups must maintain accurate and up-to-date books of accounts, including records of all financial transactions, invoices, receipts, and expenses. These records should be preserved for a specified period as required by law.

Tax Compliance: Startups need to comply with various tax-related obligations, such as filing regular tax returns (income TAX, GST, etc.) within the prescribed timelines, maintaining proper documentation to support tax deductions and exemptions, and complying with tax withholding requirements for employees and vendors. 

Key accounting compliances: Endnotes

It is important for startups to consult with a qualified chartered accountant or accounting professionals to understand and comply with the specific accounting compliance applicable to their business.

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