Industry Focus

Taxation & Regulatory Advisory for Tech Startups

Published: 26 May, 2026 Advisor: CA Abhijeet Dolase

Corporate Structuring & Tax Planning for Startups

Hinjewadi, Baner, and Pimpri-Chinchwad have evolved into prominent tech startup hubs in Maharashtra. Rapidly scaling startups require compliance setups that can handle venture capital injections, employee share pools, and international expansion. We provide startup consulting services, guiding founders through incorporation, tax exemptions, and seed-round compliance.

Our startup team acts as external financial controllers, setting up cloud accounting pipelines, designing ESOP models, and managing international transactions while protecting corporate eligibility for government tax incentives.

DPIIT Startup India Recognition & Exemptions

Registering under the Startup India Initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) unlocks significant legal and financial benefits:

  • Income Tax Exemption u/s 80-IAC: Eligible startups incorporated on or after April 1, 2016, can apply for 100% tax exemption on profits for three consecutive financial years out of the first ten years of operation.
  • Angel Tax Exemption u/s 56(2)(viib): DPIIT-recognized startups are exempt from tax on capital raised from angel investors above the fair market value of shares, subject to filing declarations and maintaining asset restrictions (not purchasing luxury vehicles or real estate).
  • Self-Certification & Compliance Fast-track: Startups can self-certify compliance under environmental and labor laws, reducing inspection audits.

Share Structuring & ESOP Valuations

Attracting talent and investors requires clean equity plans:

  1. ESOP Scheme Design: Drafting employee stock option plans (ESOP), managing vesting schedules, option pools, and computing perquisite values. We provide merchant banker valuation certificates for options.
  2. Venture Debt & Convertible Notes: Advisory on issuing Convertible Notes under the Companies Act rules, and managing FDI reporting on the RBI FIRMS portal.

Frequently Answered Queries

Q How can a startup get exemption from Income Tax under Section 80-IAC?

To get tax exemption, a DPIIT-recognized startup must apply to the Inter-Ministerial Board (IMB). Exemption is granted for any 3 consecutive years out of the first 10 years of incorporation.

Q What is the Angel Tax exemption limit?

DPIIT-recognized startups are exempt from tax on share premium received under section 56(2)(viib), subject to filing a declaration and meeting specified conditions.

Q What is a Convertible Note for startup funding?

A Convertible Note is an instrument acknowledging debt, repayable at the option of the holder, or convertible into equity shares within 10 years of issue. It requires a minimum investment of ₹25 Lakhs in a single tranche.