ANNUAL COMPLIANCE CHECKLIST FOR INDIAN STARTUPS & MSMES [2025 EDITION]

INTRODUCTION

Growth and sales alone don’t guarantee the successful operation of a Micro, Small, or Medium Enterprise (MSME) and a startup in India. Staying compliant with government regulations is equally crucial. As the Indian regulatory landscape continues to evolve, businesses need to understand and execute the legal, financial, and operational responsibilities that come with running a company.

This 2025 edition of the annual compliance checklist provides an in-depth view of the compliance expectations for Indian startups and MSMEs, covering essential filings, tax requirements, and key statutory obligations. Whether you are running a startup registered as a Private Limited Company or a small business under the MSME category, this guide will help you stay on track with minimal fuss.

WHY IS COMPLIANCE A MUST FOR MSMES IN INDIA

MSMEs are the spinal cord of the Indian economy, contributing nearly 30% of GDP and employing more than 11 crore individuals. Nevertheless, a vast majority of MSMEs lag in compliance based on unawareness, absence of time, or unavailability of professional counsel.

Here’s why compliance is essential early on:

1. It keeps you away from legal fines and interest.
2. It makes you liable for government schemes, grants, and loans.
3. It makes you confident and creditworthy among investors, suppliers, and customers.
4. It exempts you from notice by regulators and show-cause notices.

1. MSME Compliance Requirements

If your business is registered under the Udyam Registration system, you’re officially recognized as an MSME. However, registration alone does not suffice; maintaining compliance throughout the year is essential.

Key MSME Compliance Requirements for 2025:

• GSTR-1 Filing: This is a monthly return of all outward supplies (goods or services) done by GST-registered persons. The due date for filing GSTR-1 is the 11th of every month. Non-filing on time may attract a late fee of Rs 50 per day (Rs. 25 each under CGST and SGST).
• GSTR-3B Filing: This is a self-assessment summary payment report of your GST payable. The due date is the 20th of each month. Late payment will attract interest at 18% and late fees.
• Advance Tax First Installment: If your tax liability of the previous year exceeds Rs. 10,000, you must pay advance tax in four installments. The first installment (15%) is due by June 15, 2025.
• MSME Form I Filing: Companies having overdue payable to MSME suppliers over 45 days have to submit MSME Form I. The submission due date for the period October 2024 to March 2025 is April 30, 2025. Non-compliance may result in penalties and, in extreme cases, imprisonment.
• TDS Payment and Return Filing: If your MSME is withholding TDS on wages, rent, or contract payments, payment must be made by the 7th of the following month. The Q1 TDS return for April–June must be filed by July 31, 2025.
• DPT-3 Filing: If you are a private or public limited company (not an LLP) and have received loans or deposits in the previous financial year, you are required to file Form DPT-3 on or before June 30, 2025.

TMWala provides end-to-end compliance support from GST filings and advance tax calculations to TDS payment reminders so that MSMEs can focus on business growth without missing deadlines.

2. Mandatory Compliance for Private Limited Company

Private limited companies are bound by several mandatory annual and event-based compliances governed by the Companies Act, 2013, and regulations from the Ministry of Corporate Affairs (MCA). Failure to comply can result in heavy penalties, disqualification of directors, and potential legal action.

Annual Compliance Requirements Include:

• Annual General Meeting (AGM): Must be held within six months of the end of the financial year.
• Director’s Report: Submission under Section 134 of the Companies Act is mandatory and must be included in the company’s annual filing.
• Statutory Audit: All private limited companies are required to get their accounts audited annually, irrespective of turnover or profits.
• Income Tax Return (ITR): Companies must file their ITR using Form ITR-6 annually, generally by October 31st.
• Filing of AOC-4 and MGT-7: These forms relate to financial statements and annual returns, respectively, and must be filed within 30 and 60 days of the AGM, respectively.

3. Compliance Calendar for Private Limited Company

Below is a simplified calendar summarizing key due dates for May and June 2025:

May 2025

• May 7 – Payment of TDS for April
• May 11 – Filing of GSTR-1 for April
• May 20 – Filing of GSTR-3B for April

June 2025

• June 7 – Payment of TDS for May
• June 11 – Filing of GSTR-1 for May
• June 15 – First Installment of Advance Tax
• June 20 – Filing of GSTR-3B for May
• June 30 – Filing of DPT-3

4. MSME Form I Filing

MSME Form I is a mandatory filing for companies that have outstanding payments to MSME vendors for more than 45 days. This compliance aims to protect smaller suppliers from delayed payments by larger corporates. The form must be filed with the Registrar of Companies (ROC) by the specified due dates. 2025, the deadline for the October 2024 to March 2025 period is April 30.

5. Udyam Registration Update

Udyam Registration replaced the earlier Udyog Aadhaar system and is now mandatory for businesses that wish to access government benefits and schemes reserved for MSMEs.

If your MSME has not yet migrated to Udyam Registration, this should be treated as a priority. The process is simple and digital, but it is essential to ensure the correct classification of your business based on investment and turnover.

Once registered, MSMEs must also update any change in business status, including:

• Change in turnover
• Change in investment
• Business name or address changes
• Addition or closure of manufacturing or service activity

Keeping your Udyam profile updated helps in a seamless application to various MSME schemes and avoids discrepancies in official records.

TMWala can assist in Udyam Registration and timely profile updates, helping MSMEs remain eligible for schemes and avoid administrative delays.

6. ROC Filing for Private Limited Companies

ROC filings are statutory obligations under the Companies Act. All private limited companies must file various forms annually and during specific events.

Common ROC Filings Include:

• Form AOC-4: Filing of financial statements (due within 30 days of AGM)
• Form MGT-7: Annual return of the company (due within 60 days of AGM)
• Form DIR-3 KYC: KYC of Directors
• Form DPT-3: Annual return of deposits
• Form MSME-1: Half-yearly return on delayed payments to MSMEs

Late filing of ROC forms attracts additional fees of Rs 100 per day per form, and failure to file for an extended period can result in the disqualification of directors and company strike-off.

HOW NOT TO MAKE COMPLIANCE A STRESSFUL EXPERIENCE

Compliance need not be stressful. The following tips shall make it easy:

• Maintain a Compliance Calendar: Track all filing due dates using software or a shared calendar system.
• Outsource to a CA: A professional will ensure nothing slips through the cracks.
• Use Accounting Software: Software like Tally, Zoho Books, and QuickBooks calculates GST and taxes automatically.
• Perform Monthly Reviews: Dedicate one day a month to check for outstanding filings or payments.
• Keep All Records Handy: Use a cloud folder to store all invoices, challans, and certificates.

WHAT HAPPENS IF YOU MISS A DEADLINE?

Missing deadlines would have actual effects on MSMEs:

• GST Returns: Rs 50 per day as a delay charge, and you may not be able to generate e-way bills.
• Advance Tax: 1% per month interest on overdue payment.
• ROC Filings (MSME-1, DPT-3): Monetary penalty and legal notice by the Ministry of Corporate Affairs.
• TDS Returns: Rs 200 per day as a delay fee, along with interest on overdue payments.

Evading such penalties is simple if you are properly informed and behave accordingly.

CONCLUSION

Compliance is not bureaucracy; it’s your license to operate, to expand, and to gain the trust of the market. For Indian startups and MSMEs, staying compliant ensures smooth operations, access to government schemes, and credibility with investors and regulators.

From MSME Form I filing and ROC filing for private limited companies to Udyam Registration updates and GST deadlines, timely action is essential.

Getting ahead of most companies with this May–June 2025 compliance checklist is already good enough, just read and act accordingly.