Funded startups operate at a different compliance tempo — every quarter brings ESOP grants, FEMA filings, board meetings and audit-ready bookkeeping.
We work with seed to Series C startups on the full compliance and finance stack: incorporation, DPIIT, ESOP design, FEMA / FDI filings, valuation reports for angel tax exemption, and board-ready MIS.
Compliance challenges we solve
DPIIT recognition
Section 80-IAC tax holiday and angel tax exemption u/s 56 unlocked.
ESOP design
Pool sizing, vesting design, FMV valuation and the perquisite tax workings.
FEMA / FDI
FC-GPR for every share allotment, FC-TRS for transfers, ODI for outbound investments.
Audit & diligence
Books closed monthly, audit done annually, diligence pack ready any quarter.
The compliance tempo of a funded startup
Once external capital is on the cap table, a startup’s compliance rhythm changes completely. Every quarter brings ESOP grants, FEMA filings, board meetings and audit-ready bookkeeping, and investors expect month-end numbers they can trust. The cost of getting it wrong is no longer just a penalty — it is a diligence red flag that can delay or reprice your next round.
We work with startups from seed to Series C on the full compliance and finance stack: incorporation, DPIIT recognition, ESOP design, FEMA and FDI filings, valuation reports for angel-tax exemption, and the board-ready MIS your investors will ask for.
DPIIT recognition and tax benefits
DPIIT recognition is the gateway to the startup-specific benefits: the Section 80-IAC tax holiday (100% deduction on profits for three of the first ten years) and angel-tax exemption under Section 56. Recognition itself takes roughly 7–15 working days, but the 80-IAC tax-holiday approval runs on a separate inter-ministerial track that can take several months, so it pays to start early. We prepare both applications and the supporting documentation.
ESOP design and valuation
A well-structured ESOP is one of a startup’s most powerful hiring tools — and one of its easiest to get wrong. We help size the option pool, design the vesting schedule and cliff, obtain the FMV valuation, document the plan, and work out the perquisite and capital-gains tax at each of the grant, vest and exercise stages. Eligible DPIIT startups can defer the perquisite tax on exercise, and we build that into the plan where it applies.
FEMA, FDI and audit readiness
Foreign capital brings FEMA into every transaction: an FC-GPR for each allotment of shares to an overseas investor, FC-TRS for transfers, and ODI reporting for outbound investments — each with strict RBI timelines. Alongside, we keep books closed monthly, complete the statutory audit annually, and maintain a diligence pack that is ready any quarter, so a term sheet never stalls while you scramble to assemble financials.
How TCC serves funded startups
We act as the outsourced finance and compliance function for funded startups — incorporation, DPIIT, ESOP, FEMA/FDI filings, valuations, monthly close and a board-ready MIS — backed by Virtual CFO support around fundraises and audits. With a Chartered-Accountant-led team and a fixed monthly fee, you get investor-grade rigour without the cost of building an in-house finance team too early.
Frequently asked
How long does DPIIT recognition take?+
7-15 working days for recognition; angel tax exemption follows a separate 80-IAC track that can take 6-9 months.
Do you design ESOP plans?+
Yes — pool sizing, vesting cliff, FMV valuation, plan documentation and the tax workings on grant, vest and exercise.
Can you support a fundraise?+
Yes. Financial model, data room, diligence Q&A, term sheet review, FC-GPR filing post closing.
What is the 80-IAC tax holiday?+
DPIIT-recognised startups incorporated as private limited companies or LLPs can claim a 100% tax deduction on profits for any three consecutive years out of their first ten, subject to inter-ministerial board approval. We prepare and file the application.
Which FEMA filings apply when we raise foreign capital?+
Every allotment of shares to a foreign investor requires an FC-GPR filing with the RBI, share transfers need FC-TRS, and outbound investments need ODI reporting. We handle all of these within their timelines to keep your cap table FEMA-compliant.
How is ESOP taxed for our employees?+
ESOPs are taxed twice — as a perquisite on exercise (on the difference between FMV and exercise price) and as capital gains on eventual sale. Eligible DPIIT startups can defer the perquisite tax. We compute and document the workings at grant, vest and exercise.
Specialist compliance for funded startups.
Talk to a CA who already knows your industry.