HR Compliance Checklist for Indian Startups 


By Amyvir Consulting | HR Solutions for Startups


Starting and scaling a startup is exciting — but amidst the hustle of product development and fundraising, HR compliance often takes a back seat. Ignoring it, however, can lead to hefty penalties, employee disputes, and reputational damage.


If you're a startup founder or a small business owner in India, here's your HR compliance checklist for 2025 — updated and simplified.


📌 1. Business Registration & Legal Structure

Before hiring your first employee, ensure your company is legally registered
Private Limited Company, LLP, or Proprietorship
Register with MCA and obtain a CIN (Corporate Identification Number)


📌 2. PAN, TAN & GST Registration


PAN (Permanent Account Number) for financial transactions
TAN (Tax Deduction Account Number) to deduct TDS from employee salaries
GST, if your business meets the threshold


📌 3. Shops & Establishments Act

Mandatory for all offices — state-wise registration under the Shops & Establishments Act must be done within 30 days of starting operations.


📌 4. EPF (Employee Provident Fund) Registration

Mandatory if you employ 20 or more people
Optional (but beneficial) for smaller teams — enhances employer branding


📌 5. ESIC (Employee State Insurance)

Mandatory if you employ 10+ employees with gross wages under ₹21,000/month
Covers health and medical benefits for employees


📌 6. Professional Tax (PT)

Applicable in states like Maharashtra, Karnataka, West Bengal, etc.
Employers must deduct and deposit PT as per state laws


📌 7. Gratuity Act Compliance

Applicable when you have 10+ employees
Employees are entitled to gratuity after 5 years of continuous service


📌 8. POSH Compliance (Prevention of Sexual Harassment)


Mandatory for all companies with 10 or more employees
Must have an Internal Committee (IC) to handle complaints
Annual filing of POSH compliance report is required


📌 9. Labour Law Registers & Records


  • Maintain up-to-date records of:
  • Attendance
  • Salary slips
  • Leave records
  • Bonus, gratuity, and PF records



📌 10. Draft Key HR Policies & Employee Handbook


Not legally mandatory — but highly recommended for clarity:
Offer letters, appointment letters
Leave policy
Code of conduct
Termination & exit process
Anti-harassment policy