Fast-growing startups face unique financial and tax challenges. Here's how we help you navigate them.
Investor due diligence requires audit-ready financials, clean cap tables, and defensible valuations. Any discrepancy can derail your round.
Scaling from 5 to 50 employees means payroll compliance, ESOP management, and multi-state tax registrations—all while keeping burn rate in check.
Startups miss out on Section 80IAC benefits, R&D tax credits, and startup tax holidays due to lack of specialized guidance.
Poor financial planning leads to runway miscalculations. We've seen Series A companies run out of cash 3 months before their next raise.
From DPIIT recognition to FEMA compliance for foreign investments, startups face a maze of regulations that can result in penalties if mishandled.
VCs demand monthly MIS, KPI dashboards, and quarterly board decks. Building these systems from scratch is time-consuming and error-prone.
Comprehensive financial advisory designed specifically for high-growth technology companies
Everything a growing technology company needs under one roof
Pvt Ltd vs LLP, holding company setup, IP ownership structures
ROC filings, AGM, board meetings, regulatory deadlines
ESOP fair market value for startups (for option grants)
Revenue projections, unit economics, SaaS metrics tracking
Foreign subsidiary setup, FEMA compliance, transfer pricing
Multi-state payroll, PF/ESI, contractor payments
Startups in India face a different compliance load from established businesses: investor money, equity incentives, foreign customers and rapid hiring all arrive before the finance function is ready. These are the areas that most often need attention.
Recognition under the Startup India scheme is the starting point for startup-specific benefits, including the profit-linked tax holiday that sat under Section 80-IAC of the 1961 Act. Each benefit has its own eligibility conditions and approval route, so we check the current notification before relying on it.
The old angel tax provision on share premium has been removed, but valuation still matters. Share issues to non-residents must meet FEMA pricing rules, and investors expect a defensible valuation report and a clean cap table during diligence.
Employee options are taxed as a perquisite when exercised and as capital gains when the shares are sold. Eligible startups have had deferral relief on the perquisite, so the plan, the valuation and the payroll TDS need to be aligned from the first grant.
Software and consulting exported to foreign clients can be zero-rated, but only if the conditions are met, including receipt in convertible foreign exchange. Many startups export under a Letter of Undertaking rather than paying IGST and claiming a refund.
Foreign investment brings reporting to the RBI through the authorised dealer bank, along with an annual foreign liabilities and assets return. Late filings attract compounding fees, and they surface in later due diligence.
Under the MSME payment rule in Section 43B(h), amounts owed to Udyam-registered micro and small suppliers beyond the permitted period can be disallowed as an expense. Startups with many small vendors need a payables ageing report each month.
Our startup engagements run on a monthly cycle, so investor and tax questions are answered from books that are already reconciled. Founders who only need a number can start with our startup valuation calculator; the Virtual CFO service covers the full cycle.
No. A company can operate without it. Recognition is needed only if you want startup-specific benefits such as the tax holiday or certain exemptions, and each benefit has separate eligibility conditions and approval.
The provision that taxed share premium above fair value in the hands of the company has been removed by Parliament. Valuation reports are still needed for FEMA compliance on foreign investment and for investor diligence.
The difference between market value on the exercise date and the exercise price is taxed as a salary perquisite. The gain on sale is taxed as capital gains. Eligible startups have had a deferral for the perquisite tax, so confirm eligibility before granting options.
Export of services is a zero-rated supply if the conditions are met. Many exporters furnish a Letter of Undertaking to supply without paying IGST. Our GST calculator helps you check invoice values.
Usually before the first institutional round, or when founders spend more time on reconciliations and filings than on the business. A Virtual CFO gives senior oversight without a full-time salary.