The Startup’s Statutory Compliance Checklist for India (2026)

Last Updated on August 13, 2026 by Shankar Jadhav

Most founders discover statutory compliance the hard way - a notice from the PF office, a missed TDS deadline, or an investor’s due-diligence list that suddenly makes your Series A feel very far away.

The truth is, compliance in India isn’t one big scary event. It’s a set of registrations you do once, plus a handful of filings you repeat every month, quarter and year. This statutory compliance checklist lays it out the way it actually works: register once, then file on a schedule. Get the rhythm right and it becomes background noise; ignore it and the penalties compound quietly until they’re a real number.

Part 1: One-time registrations

These are triggered by headcount or by simply starting operations. Complete each as you cross the threshold.

• Shops & Establishments registration - Required for almost every business with a commercial premises, usually within 30 days of starting. It’s state-specific and underpins most other registrations.
• PF (EPF) registration - Mandatory once you employ 20 or more people; 12% of basic wages each from employer and employee. See our PF and ESIC registration guide for the detail.
• ESIC registration - Mandatory at 10 or more employees in notified areas, for staff earning up to ₹21,000/month gross.
• Professional Tax (PT) registration - Levied by many (not all) states; you’ll usually need both a registration and an enrolment certificate.
• TAN - Needed to deduct and deposit TDS on salaries and vendor payments.
• POSH Internal Committee - Any workplace with 10 or more employees must constitute an Internal Committee under the POSH Act. One of the most commonly missed obligations at early stage.

Part 2: Every month

This is the heartbeat of payroll compliance. Miss these and interest and penalties start ticking immediately.

• PF contribution & ECR filing - Deposit and file the Electronic Challan-cum-Return, typically by the 15th of the following month.
• ESIC contribution - Deposit by the 15th of the following month.
• TDS on salaries - Deposit deducted tax by the 7th of the following month (March deductions by 30 April).
• Professional Tax - Deduct and deposit per your state’s schedule (monthly in most states).

Part 3: Every quarter

• Salary TDS return (Form 24Q, now Form 138 from 1 April 2026) - File the quarterly return summarising salary TDS by the end of the month following each quarter. Late filing carries a per-day fee that adds up fast.
• Reconcile for Form 16 - Keep quarterly numbers clean so annual certificates are painless.

Part 4: Every year

• Form 16 to employees - The annual TDS certificate, issued after the financial year closes.
• PF & ESIC annual reconciliation - Match monthly filings against payroll.
• Professional Tax annual return - Where applicable by state.
• Labour Welfare Fund - Half-yearly or annual contribution in states that levy it.
• Statutory registers & returns - Renewals and annual returns under Shops & Establishments and labour laws vary by state.

Part 5: Event-based obligations

These aren’t on a calendar - they trigger when something happens.

• New joiner: UAN generation, PF/ESIC enrolment, PT enrolment, investment declarations.
• Exit: Full & final settlement, PF withdrawal/transfer support, relieving documentation.
• Crossing a threshold: Register for PF (20), ESIC and POSH (10) as you grow - don’t wait for a notice.
• Gratuity: Employees generally become eligible after 5 years of continuous service in establishments with 10+ employees.
• Maternity benefit: Eligible women employees are entitled to 26 weeks of paid leave (12 weeks from the third child).

What about the new Labour Codes?

India’s four Labour Codes came into legal effect on 21 November 2025, with the central rules notified in May 2026. They consolidate most of the older Acts - the Code on Social Security, 2020 now governs PF, ESI, gratuity and maternity. The good news for this checklist: the core thresholds and rates above carried over (the ₹15,000 PF wage ceiling was even re-notified in 2026). The catch is that state-level rules are still rolling out unevenly, so exactly how a provision applies can depend on your state. Bottom line: comply with the obligations above now, and watch your state’s notifications for the finer points.

What non-compliance actually costs

• Interest and damages on late PF/ESIC - charged per day and per annum, so a “small” delay rarely stays small.
• TDS penalties - late-deposit interest plus a per-day late-filing fee on returns.
• Due-diligence drag - the quiet killer. Investors price compliance gaps as risk, and unresolved statutory liabilities can slow or reshape a deal.
• Employee trust - deductions that don’t reach the fund show up in an employee’s UAN passbook, eroding trust fast.

The simplest way to stay clean

You don’t need a full HR department to stay compliant - you need the calendar and the discipline to hit it: a live register of which registrations apply as you grow, a monthly checklist tied to the 7th and 15th, and clean payroll records so quarterly and annual filings are a copy-paste, not a scramble.

If that sounds like one more thing you don’t have time to own, that’s exactly what we do. HRTailor runs statutory compliance and payroll for growing Indian companies - every registration, every deadline, every month - so you can hire and scale without watching the calendar.

This statutory compliance checklist is general information, not legal advice. Thresholds, rates and due dates are set by central and state authorities and change over time - confirm the current requirements for your state and situation before acting.