Last updated . Limits, rates and due dates reflect notifications in force on this date.
Good decisions start before the first invoice
The structure you pick on day one decides how you are taxed, who is liable for the debts, how easily you can bring in a partner or investor, and how much compliance you carry every year. Changing it later is possible, but it costs time, stamp duty and sometimes tax.
The same is true of money. A bank reads your project report and CMA data before it reads anything else. A clear plan, built on your real numbers, gets a faster and better answer than a template filled in the night before.
Plans, forecasts and project reports that help you decide, borrow and grow, built on your books, your returns and realistic assumptions.
The legal and registration work around the business: company, LLP and HUF formation, partnership deeds, firm registration, wills and profession tax.
Three principles behind our advice
Your numbers first
Every projection starts from your audited accounts, tax returns and GST returns, so lenders and investors see figures that tie back to records.
Fit, not fashion
We recommend the structure that suits your plans for tax, liability, funding and family, even when it is the simpler option.
Compliance built in
Registrations, filings and due dates are mapped from the start, so a new entity does not pick up penalties in its first year.
What changed in 2025-26
Several changes in the last eighteen months affect how small businesses are classified, how startups are recognised, when profession tax is due and how families deal with wills. Here is what matters for you.
MSME limits revised from 1 April 2025
By notification S.O. 1364(E) dated 21 March 2025, a micro enterprise now has investment up to ₹2.5 crore and turnover up to ₹10 crore, a small enterprise up to ₹25 crore and ₹100 crore, and a medium enterprise up to ₹125 crore and ₹500 crore. Both limits must be met.
For you: many businesses that had outgrown "small" are back in, with access to MSME credit schemes and the 45-day payment protection. Check your Udyam category.
DPIIT startup limits doubled
Notification G.S.R. 108(E) dated 4 February 2026 raises the turnover limit for startup recognition to ₹200 crore, keeps the 10-year age limit, and adds a deep tech category with a 20-year window and a ₹300 crore limit. Cooperative societies can now apply too.
For you: businesses that crossed ₹100 crore may qualify again. Existing recognitions continue without a fresh application.
Maharashtra moves due dates to the 15th
A notification dated 28 February 2026 amended Rule 11(3) of the Profession Tax Rules. The annual PTRC return and the March return are now due by 15 March instead of 31 March, and other due dates move from the last day of the month to the 15th.
For you: payroll and payment calendars built around month end need resetting. A late return attracts a late fee even when the tax is paid.
Probate no longer compulsory in Mumbai
The Repealing and Amending Act, 2025, which received assent on 20 December 2025, omitted Section 213 of the Indian Succession Act, 1925. Probate is no longer a precondition for executors and beneficiaries to establish rights under wills made in Mumbai, Chennai or Kolkata.
For you: a clear, well-witnessed will now matters even more, because it may be acted on directly. Probate is still available where a dispute is likely.
Our advisory services
Business Plans, Budgets & Forecasts
For owners, boards, investors and lenders
A business plan is only useful if the numbers behind it hold up. We build plans, annual budgets and rolling forecasts from your actual accounts, so you can see what growth will cost, how much cash you will need and when, before you commit.
- Business plans for new ventures, expansions and investor discussions
- Annual budgets by department, product or branch, with monthly phasing
- Projected profit and loss, balance sheet and cash flow, linked to one set of assumptions
- Break-even, pricing and product-level margin analysis
- Budget versus actual reviews and rolling forecasts during the year
- Scenario tests for delayed receivables, input price rises or slower sales
Expert note: most growing businesses run short of cash because of working capital, not losses. Your forecast should show debtor and inventory days separately, since a few extra days of credit to customers can absorb more cash than a new machine.
Project Reports & Loan Assistance
RBI directions on MSME lending · CGTMSE · Pradhan Mantri Mudra Yojana
We prepare the project report and CMA data your bank asks for, reconcile them with your books and returns, and help you answer the credit team's questions. The aim is a report that a banker can appraise quickly and trust.
- Detailed project reports for term loans, working capital and new units
- CMA data: operating statements, balance sheet analysis, fund flow and key ratios
- DSCR, interest coverage and break-even workings, with a repayment schedule
- Working capital assessment based on your debtor, creditor and inventory cycle
- Loans under CGTMSE cover, which now extends to loans up to ₹10 crore for eligible micro and small enterprises
- Mudra loans, including the Tarun Plus category for loans above ₹10 lakh and up to ₹20 lakh for past Tarun borrowers who have repaid
- Udyam registration and category checks before you apply
Expert note: from 1 April 2026, RBI directions bar banks from taking collateral on loans up to ₹20 lakh to micro and small enterprises, up from ₹10 lakh. If you are asked for security on a loan within this limit, it is worth raising with the branch.
LLP, HUF & Company Formation
Companies Act, 2013 · LLP Act, 2008 · SPICe+ (INC-32) and FiLLiP on the MCA portal
We help you choose the right structure, then handle the whole setup: name approval, digital signatures, incorporation documents, and the registrations and filings that follow. For families, we set up HUFs with the right paperwork from the start.
- Private limited companies and OPCs through SPICe+, which also covers DIN for up to three directors, PAN, TAN, EPFO and ESIC, and in Maharashtra, profession tax
- GST registration and a bank account through the linked AGILE-PRO-S form where needed
- LLPs through FiLLiP, including DPIN for designated partners, and the LLP agreement in Form 3 within 30 days
- Digital signature certificates for directors and partners
- Post-incorporation work: first board meeting and first auditor within 30 days, and Form INC-20A within 180 days
- HUF formation: HUF declaration, PAN in the HUF's name, bank account and records of the HUF's corpus
- DPIIT startup recognition and Udyam registration for new entities
- Section 8 companies for charitable and non-profit objects, with the licence applied for within SPICe+ itself. Income must be applied to the objects and cannot be distributed to members
- Public charitable trusts under the Maharashtra Public Trusts Act, 1950, and societies under the Societies Registration Act, 1860. In Maharashtra, a charitable society is also a public trust and registers with the Charity Commissioner
- Conversion of a partnership firm or private company into an LLP, with the tax conditions checked before you convert
- For startups: founder equity split, vesting for founders, and ESOP planning under Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014, which requires at least one year between grant and vesting
Expert note: if a company does not file INC-20A within 180 days, the company faces a ₹50,000 penalty and each officer in default ₹1,000 a day up to ₹1 lakh, and the ROC can start action to strike its name off. It is best filed as soon as the subscribers' share money reaches the company's bank account. For startups, note that ESOPs cannot normally go to promoters or to directors holding more than 10%, but a DPIIT-recognised startup is exempt from this for ten years from incorporation.
Wills, Partnership Deeds & Profession Tax
Indian Partnership Act, 1932 · Indian Succession Act, 1925 · Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
The documents that hold a business and a family together. We draft partnership deeds that deal with the questions partners usually argue about later, register firms with the Registrar of Firms, help you plan and record a clear will, and handle profession tax registration and returns.
- Partnership deeds covering capital, profit sharing, interest and remuneration to partners, retirement and dissolution
- Stamp duty working under Article 47 of the Maharashtra Stamp Act: ₹500 for every ₹50,000 of cash capital or part of it, with a minimum of ₹500 and a cap of ₹50,000
- Firm registration with the Maharashtra Registrar of Firms, and later changes in partners or address
- Will planning: listing assets, choosing executors, and execution with two witnesses as Section 63 of the Indian Succession Act requires
- Profession tax enrolment (PTEC) for companies, firms, directors, partners and professionals, at ₹2,500 a year
- Employer registration (PTRC), salary deductions and monthly or annual returns
Expert note: a beneficiary, or the spouse of a beneficiary, should never witness a will. Under Section 67 of the Indian Succession Act, the gift to that person becomes void, even though the rest of the will stays valid.
Virtual CFO, Cash Flow & Investor Readiness
Advisory engagement · no statutory form · valuation rules apply when shares are issued
Many owner-managed businesses need a CFO's judgement but not a full-time CFO. We assist with the monthly review of your numbers, cash and working capital, reporting to your board, bank or investors, and the preparation that a fund raise or due diligence demands.
- Monthly KPI and performance reviews: sales, gross margin, overheads against budget and cash position
- Cash flow and working capital management, tracking receivable, payable and inventory days
- Board, lender and investor reporting packs on a fixed monthly or quarterly format
- Business performance reviews with ratio analysis: margins, return on capital, debt and liquidity ratios
- Investor readiness: projections, a clean data room, and support through financial due diligence
- Valuation coordination with a registered valuer. A preferential allotment needs a registered valuer's report under Rule 13 of the Companies (Share Capital and Debentures) Rules, 2014, and shares issued to non-residents must meet FEMA pricing rules
- Process improvement and internal control recommendations for approvals, purchases, billing and collections
Expert note: investors' due diligence usually finds problems in the records, not the business plan. Before you open a data room, reconcile your books with your GST and income tax returns, clear old statutory dues, and check that every past share allotment has its board and shareholder approvals, return of allotment and share certificates in order. Fixing these after a term sheet is signed costs time and negotiating strength.
Other support we provide
Proprietorship, firm, LLP, company or OPC?
A quick comparison of the five common structures. The right choice depends on your plans for funding, liability, tax and succession.
| Structure | Minimum | Liability and tax | Setup and yearly compliance |
|---|---|---|---|
| Sole proprietorship | 1 owner | Unlimited personal liability. Income taxed as the owner's, at slab rates | No separate registration law. GST, Udyam and local licences as needed. Tax audit only above the limits |
| Partnership firm | 2 partners | Unlimited, joint and several liability. Firm taxed at 30% plus surcharge and cess | Stamped partnership deed. Registration with the Registrar of Firms, within one year in Maharashtra |
| LLP | 2 designated partners | Liability limited to agreed contribution. Taxed at 30% plus surcharge and cess. Profit share is not taxed again for partners | FiLLiP, then Form 3 within 30 days. Form 8 and Form 11 every year. Audit only above ₹40 lakh turnover or ₹25 lakh contribution. One designated partner must have stayed in India 120 days or more |
| Private limited company | 2 directors, 2 shareholders | Liability limited to shares. Base rate of 22% under the concessional regime, about 25.17% with surcharge and cess. Dividends taxed in shareholders' hands | SPICe+, INC-20A within 180 days, statutory audit every year, AOC-4 and MGT-7A or MGT-7. One director must have stayed in India 182 days or more in the year |
| One Person Company | 1 member, 1 nominee | Liability limited to shares. Taxed like any other company | As for a private company, with lighter board meeting rules. The member must be an individual and an Indian citizen. No turnover or capital cap since 1 April 2021 |
This is a summary for general guidance. The right structure depends on your figures, your partners and your plans. Speak to us before you register, as switching later involves cost and, in some cases, tax.
What about an HUF?
A Hindu Undivided Family arises within a Hindu, Jain, Sikh or Buddhist family and is managed by the Karta. Since 2005, daughters are coparceners by birth, just like sons. An HUF gets its own PAN, files its own return and has its own basic exemption. It works well for holding ancestral property or investments, but income from assets that a member transfers to the HUF without adequate consideration can be clubbed back with that member's income. We help you document the HUF's corpus so the tax position stays clean.
Key dates to plan around
Deadlines that follow a new registration, and the profession tax dates for the current cycle under the amended Maharashtra rules.
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Within 30 days of incorporation
First board meeting and appointment of the first auditor by the board. For an LLP, filing of the LLP agreement in Form 3.
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Within 180 days of incorporation
Form INC-20A, the declaration that subscribers have paid for their shares, before the company starts business or borrows.
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Within 1 year of forming a firm
Registration with the Registrar of Firms in Maharashtra, to avoid the penalty for late registration.
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15th of each month
PTRC monthly returns for employers filing monthly, which applies where the previous year's liability was ₹50,000 or more.
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15 Mar 2027
PTRC annual return for FY 2026-27 for employers filing annually, and the March 2027 monthly return.
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15 Jun 2027
PTEC payment of ₹2,500 for FY 2027-28 by companies, firms, directors, partners and professionals already enrolled.
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30 June, every third year
DIR-3 KYC for directors, now once every three financial years instead of every year, from 31 March 2026.
How we work with you
Whether you are setting up, borrowing or planning ahead, the process is the same: understand first, then document, then follow through.
Understand your goal
A conversation about what you want to achieve, who is involved, and the timelines you are working to.
Review the records
We look at your accounts, returns, existing loans and agreements, so advice rests on facts, not assumptions.
Recommend options
Clear options with their tax, cost and compliance effects, explained in plain language, so the decision stays yours.
Prepare and file
Drafting, projections, forms and applications, with a checklist of what we need from you and when.
Support the discussion
We help answer questions from the bank, the Registrar or your partners until the loan, registration or deed is through.
Keep you compliant
A calendar of follow-up filings and renewals, so a new entity or loan does not pick up avoidable penalties.
Numbers that tie back
A project report or CMA data should tie back to your audited accounts, income tax returns and GST returns. Lenders compare these, and a mismatch is one of the most common reasons a proposal slows down.
Common mistakes we see
Each of these is easy to avoid at the start and expensive to fix later.
Choosing a structure only for the tax rate
The rate is one factor. Liability, funding plans, compliance cost and how profits reach the owners often matter more.
Working without a partnership deed
An oral arrangement or an unregistered firm leaves partners with no clear rules on exit, and an unregistered firm cannot sue to recover its dues.
Missing INC-20A
New companies that start trading or borrowing before filing INC-20A face penalties and possible strike-off.
Projections that do not match returns
Turnover in the project report that differs from GST and income tax returns raises questions at the bank and delays sanction.
Profession tax left unregistered
Directors, partners and employers who never enrol, or who file late, end up paying interest and late fees of ₹200 to ₹1,000 per return.
No will, or an outdated one
Relying on nominations alone, or not updating a will after marriage, a new business or a property purchase, often leads to family disputes.
Documents to keep ready
Having these at hand shortens most engagements considerably.
- PAN, Aadhaar, photographs, email and mobile of each director, partner or proprietor
- Proof of registered office: rent agreement or ownership proof, owner's NOC and a recent utility bill
- Proposed names, business activity and capital or contribution for a new entity
- Last three years' audited accounts and income tax returns
- GST returns and bank statements for the last twelve months
- Sanction letters and repayment schedules of existing loans
- Quotations for machinery or equipment, and details of the project site
- Udyam certificate, GST certificate and other business registrations
- For a will: list of assets and liabilities, nominations and chosen executors
- For profession tax: employee list with monthly salary, and details of directors or partners
Why clients choose us for advisory work
- Founder-led advice. CA Sejal Patel, with 10+ years in audit, taxation, GST and advisory, is directly involved and accessible on every engagement, so you are never passed around.
- An experienced team. CA Bhoomi, Audit and Compliance Lead, and a team of 10+ experienced professionals work under direct founder supervision.
- Deadlines kept. Structured monthly compliance calendars and disciplined documentation keep follow-up filings and renewals on track.
- Varied client base. Our client base includes importers, exporters and clearing and forwarding agents, alongside manufacturers, traders, service companies, startups and SMEs.
- Plain language. Options are explained with their cost and consequences, so you decide with full information.
- Confidential. Family and business information is handled under the confidentiality duties of the ICAI Code of Ethics.
Frequently asked questions
Should I start as an LLP or a private limited company?
It depends on your plans. An LLP suits professionals and family businesses that want limited liability with lighter compliance, and an LLP needs an audit only above ₹40 lakh turnover or ₹25 lakh contribution. A private limited company suits businesses that plan to raise equity, issue shares to employees or bring in outside investors, but it needs an audit every year. Tax is also different: an LLP pays 30% plus surcharge and cess, while a company can opt for a 22% base rate, about 25.17% after surcharge and cess, with dividends taxed again in shareholders' hands.
Is there a minimum capital to register a private limited company?
No. There is no minimum paid-up capital for a private limited company. MCA registration fees are nil where authorised capital is up to ₹15 lakh, though state stamp duty and the cost of digital signatures still apply. You need at least two directors, one of whom has stayed in India for at least 182 days in the financial year, and at least two shareholders.
What are the MSME limits now, and do exports count towards turnover?
From 1 April 2025, a micro enterprise has investment in plant, machinery or equipment up to ₹2.5 crore and turnover up to ₹10 crore. A small enterprise has up to ₹25 crore and ₹100 crore, and a medium enterprise up to ₹125 crore and ₹500 crore. Both tests must be met. Export turnover is excluded when turnover is calculated for classification, which helps exporters stay within a lower category.
Can a small business get a bank loan without collateral?
Yes, within limits. From 1 April 2026, RBI directions bar banks from taking collateral for loans up to ₹20 lakh to micro and small enterprises. For larger loans, the CGTMSE credit guarantee scheme covers loans up to ₹10 crore to eligible micro and small enterprises, which lets banks lend without collateral or a third-party guarantee. The bank still decides on the loan, so a sound project report matters.
Is registration of a partnership firm compulsory in Maharashtra?
Registration is not compulsory for a firm to exist, but an unregistered firm cannot file a suit against third parties to enforce its contracts, and partners face the same bar against the firm. In Maharashtra, the statement for registration should be filed with the Registrar of Firms within one year of forming the firm. After that, a penalty of ₹1,000 for every year of delay applies.
What is the stamp duty on a partnership deed in Maharashtra?
Where the capital brought in cash is up to ₹50,000, the duty is ₹500. Above that, it is ₹500 for every ₹50,000 or part of it, capped at ₹50,000. The cap was raised from ₹15,000 with effect from 14 October 2024. Where a partner brings in property instead of cash, duty is payable as on a conveyance of that property.
Does a will need to be registered or stamped, and is probate still needed in Mumbai?
A will does not need stamp duty, and registration is optional under the Registration Act, 1908, though it adds weight as evidence. It must be signed by you and attested by at least two witnesses. The Repealing and Amending Act, 2025 omitted Section 213 of the Indian Succession Act, so probate is no longer compulsory for wills made in Mumbai or dealing with property there. Probate is still available and can be useful where a dispute is likely.
Who pays profession tax in Maharashtra, and by when?
Employers deduct it from salaries and pay it under their PTRC registration. Men earning over ₹10,000 a month and women earning over ₹25,000 a month pay ₹200 a month and ₹300 in February, or ₹2,500 a year. Companies, firms, directors, partners, professionals and proprietors enrol under PTEC and pay ₹2,500 a year. From 2026, the annual PTRC return and the March return are due by 15 March instead of 31 March, and other due dates have moved from the last day of the month to the 15th.
Who qualifies as a startup for DPIIT recognition now?
Under the notification of 4 February 2026, a private limited company, LLP, registered partnership firm or cooperative society up to 10 years old, with turnover up to ₹200 crore in every year, working on innovation or a scalable business model, can apply. Deep tech startups get up to 20 years and a ₹300 crore turnover limit. Recognition is the first step for benefits such as the startup tax holiday, which needs a separate certificate.
What is a virtual CFO and when does a business need one?
A virtual CFO is an experienced finance professional who does the work of a chief financial officer part time, usually through a monthly review cycle, instead of as a full-time employee. A business typically needs one when it has outgrown bookkeeping alone: sales and headcount are growing, cash is tight even though the business is profitable, a bank or investor wants regular MIS, or the owner is taking pricing, hiring and funding decisions without reliable numbers. The engagement can be stepped up around a fund raise or a large loan and scaled back afterwards.
Is business advisory only for large companies?
No. Small and growing businesses often gain the most, because a single decision on structure, pricing, credit terms or borrowing makes a large difference to their cash and tax. Advisory can be a one-time piece of work, such as a project report or a structure review, or a regular monthly engagement. Our client base includes startups and SMEs as well as private and public limited companies.
How often should a business review its financial performance?
Monthly, through a short MIS prepared soon after month end: sales, gross margin, expenses against budget, cash position, receivables and payables ageing, and inventory. Every quarter, a deeper review of ratios, budget against actual, working capital days and the forecast for the rest of the year. Once a year, after the accounts are finalised, a review of the business plan, pricing and structure. If you have working capital limits, keep the MIS consistent with the stock and debtor statements you give the bank.
This page is general information for businesses and families and is not professional or legal advice for any specific situation. Laws, limits, stamp duty and due dates change through notifications and circulars, and wills and deeds may need a lawyer's review. Please consult us before acting on it.