Private Limited Company Registration in Pune — The Complete Guide Including GST, Shop Act, Udyam, and Profession Tax

Private Limited Company Registration

Most guides about Private Limited Company registration in Pune stop at the same place.

They walk you through the incorporation process — DSC, name approval, SPICe+ filing, Certificate of Incorporation — and then end with something like “your company is now registered.”

What they do not tell you is that the Certificate of Incorporation is not the finish line. It is the starting point for a series of registrations that your company will need before it can operate, raise invoices, open a bank account, onboard corporate clients, and stay legally compliant under Maharashtra law.

At Akhil Amit And Associates, we handle Private Limited Company registration in Pune as a complete process — from incorporation through every post-incorporation registration your business actually needs. In this guide, we explain what those registrations are, why each one matters, and what the realistic timeline looks like when you put the whole picture together.


What Happens the Day You Get Your Certificate of Incorporation

Your Certificate of Incorporation arrives by email from the MCA. It contains your Company Identification Number, your company PAN, and your TAN. At this point, your company legally exists.

But it cannot yet:

  • Raise a GST-compliant invoice
  • Be registered as a vendor with any corporate client that requires a GSTIN
  • Operate as a business in Maharashtra without Shop Act registration
  • Access MSME benefits, government tenders, or priority sector bank lending without Udyam registration
  • Employ staff in Maharashtra without PTRC registration or meet your own profession tax liability without PTEC

Each of these requires a separate registration. Each has its own timeline, documents, and compliance obligations. And the sequence in which you complete them matters — because some registrations require others to be in place first.

This is what a complete Private Limited Company registration in Pune actually looks like.


The Foundation: Incorporation Under the Companies Act, 2013

Before the post-incorporation registrations make sense, it helps to understand what the incorporation process delivers — because many founders are unclear about what is and is not included in a standard incorporation package.

When a Private Limited Company is incorporated through the SPICe+ form on the MCA portal, the following are generated automatically alongside the Certificate of Incorporation:

Company PAN and TAN — allotted by the Income Tax department as part of the SPICe+ process. These are included in the incorporation itself and do not require separate applications.

EPFO and ESIC registration — for companies incorporated after February 2020, provisional EPFO and ESIC registration numbers are generated automatically through the AGILE-PRO-S component of SPICe+. These become active registrations once you hire employees.

Professional Tax registration (PTEC) — for the company itself as an entity, this is also issued through AGILE-PRO-S in Maharashtra. This is your company’s own profession tax liability, separate from the PTRC you will need once you start employing people.

What is not automatically generated — and what requires separate applications after incorporation — is everything else: GST, Shop Act, Udyam, and PTRC (employer profession tax).

Understanding this distinction matters because founders who assume “everything is handled” during incorporation often discover compliance gaps weeks or months later, sometimes when a client has already flagged the missing GSTIN or when a bank query has stalled their account opening.


GST Registration — Your First Priority After Incorporation

For most Private Limited Companies in Pune, GST registration is the most urgent post-incorporation step.

Here is why it cannot wait.

The moment your company begins generating revenue from services or goods, every B2B client will ask for your GSTIN to process vendor onboarding and record the transaction correctly in their GST returns. Raising an invoice without a GSTIN — when your business is legally required to be registered — is not just a compliance problem. It puts your client’s input tax credit at risk and can delay payments while their accounts team flags the missing information.

When is GST registration mandatory?

For a Private Limited Company in Pune, GST registration becomes compulsory when:

Annual turnover from services crosses ₹20 lakh, or annual turnover from goods crosses ₹40 lakh. But these thresholds are misleading in practice, because several situations make registration compulsory regardless of turnover — the most common being interstate supply. If your Pune-based company provides services or sells goods to clients in any other state, you are making an interstate supply and GST registration is mandatory from day one, with no turnover threshold.

Similarly, if you sell through any e-commerce platform — Amazon, Flipkart, Meesho, or any other aggregator — GST registration is compulsory regardless of your turnover or product category.

Our recommendation for Pune-based companies: Apply for GST registration within the first two weeks of incorporation, in parallel with opening your current account. Both processes require similar documents and can run simultaneously. Waiting until your first invoice is a risk that regularly causes unnecessary delays and client friction.

Timeline: GST registration typically takes 7 to 10 working days with clean documentation. If the GST officer raises a clarification query, add another 7 days. Physical verification is rarely required for Private Limited Companies with a proper registered office address.

Documents required for GST registration of a Private Limited Company:

Certificate of Incorporation, company PAN, MOA and AOA, PAN and Aadhaar of all directors, photograph of the authorised signatory, proof of registered office address (electricity bill, rent agreement, and NOC from owner if rented), cancelled cheque of the company’s current account, and the digital signature certificate of the authorised director.

Note that the current account is ideally opened before the GST application — because the bank account details are required in the GST REG-01 form. The sequence is: Incorporation → Current Account → GST Registration.


Shop Act (Gumasta) Registration — Mandatory for Every Business Operating in Maharashtra

The Maharashtra Shops and Establishments Act, 1948 requires every business operating in Maharashtra — including Private Limited Companies — to register under the Shop Act, commonly called Gumasta Licence.

This is a registration that many founders outside Maharashtra are unfamiliar with, and which is frequently missed by online incorporation portals that do not specialise in Maharashtra-specific compliance.

Who needs it?

Every establishment that employs workers in Maharashtra, including offices, IT companies, consultancies, retail businesses, and service providers — regardless of the number of employees. Even a two-director Private Limited Company operating from a rented office in Hinjewadi, Baner, or Wakad is required to obtain Shop Act registration.

Why it matters practically:

Shop Act registration is required for:

Opening a current account with several banks — HDFC, ICICI, and Axis in particular often ask for Gumasta Licence as part of their current account opening documentation for new companies.

Onboarding with corporate clients in Maharashtra, particularly IT and manufacturing companies that conduct formal vendor due diligence.

Obtaining other licences and registrations including FSSAI (for food businesses) and certain municipal permissions.

Timeline: Typically 7 to 15 working days through the Maharashtra Aaple Sarkar portal. The registration is state-governed and issued by the local municipal authority — PCMC for Pimpri Chinchwad, and PMC for Pune city.


Udyam Registration — Unlocking MSME Benefits for Your Company

Udyam registration is India’s official MSME classification system, replacing the older Udyog Aadhaar process. It is issued by the Ministry of MSME and classifies your business as a Micro, Medium, or Small Enterprise based on annual turnover and investment in plant and machinery or equipment.

For Private Limited Companies in Pune — particularly startups and growing businesses — Udyam registration is not just a formality. It unlocks a range of tangible benefits that can meaningfully affect your business from year one.

What Udyam registration gives you:

Priority sector lending from banks — Udyam-registered MSMEs are eligible for loans under government MSME schemes including the Emergency Credit Line Guarantee Scheme (ECLGS) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which provides collateral-free loan guarantees up to ₹2 crore.

Protection under the MSME Act for delayed payments — if a corporate buyer delays payment beyond 45 days, the MSME Act allows you to claim compound interest at three times the bank rate on the outstanding amount. This is only available to Udyam-registered businesses.

Eligibility for government tenders with MSME quotas, which in many sectors are reserved partially or fully for registered MSMEs.

Lower registration fees and concessions on certain state government licences in Maharashtra.

Who qualifies?

A Private Limited Company qualifies as an MSME if its annual turnover is below ₹250 crore and investment in equipment or plant is below ₹50 crore (Medium Enterprise threshold). Most startups and growing businesses in Pune comfortably qualify as Micro or Small Enterprises for the first several years.

Timeline: Udyam registration is a simple online process through the udyamregistration.gov.in portal and is typically completed within 1 to 3 working days with the company’s PAN and the authorised director’s Aadhaar.


Profession Tax — PTRC for Employers, PTEC for the Company

Maharashtra levies a Profession Tax on individuals earning a salary or income from profession or trade. For a Private Limited Company, this creates two distinct registration obligations that are often confused with each other.

PTEC — Professional Tax Enrolment Certificate

This is the company’s own profession tax liability as a legal entity. As mentioned earlier, for companies incorporated through AGILE-PRO-S, a provisional PTEC is issued automatically. However, this provisional registration needs to be activated and the annual profession tax of ₹2,500 needs to be paid to the Maharashtra state government.

PTRC — Professional Tax Registration Certificate

This is the employer’s registration and is required the moment your company hires even a single employee — full-time, part-time, or on contract. As an employer, your company is responsible for deducting profession tax from employee salaries based on the Maharashtra slab rates and depositing it with the government monthly.

Failing to obtain PTRC before hiring is a compliance gap that regularly comes up in corporate vendor audits and HR due diligence. The process is handled through the Maharashtra government’s Mahavikas portal and typically takes 5 to 7 working days.


What the Complete Timeline Looks Like

When founders ask us how long it takes to “fully set up” a Private Limited Company in Pune — meaning the company is incorporated, has a GST number, is compliant under Maharashtra law, and is ready to invoice, hire, and onboard clients — the honest answer is:

With complete, clean documentation and professional management: 3 to 5 weeks from the date we begin.

The typical sequence looks like this:

Week 1 to 2 — Incorporation: DSC procurement, name search and application, MOA and AOA drafting, SPICe+ filing. Certificate of Incorporation, PAN, and TAN issued by MCA.

Week 2 — Current Account Opening: Initiated immediately after COI using incorporation documents. Most banks process new company current accounts within 3 to 7 working days.

Week 2 to 3 — GST Registration: Applied once current account details are available. GSTIN typically issued within 7 to 10 working days.

Week 2 to 3 — Shop Act Registration: Applied in parallel with GST through the Aaple Sarkar portal.

Week 2 — Udyam Registration: Completed within 1 to 3 days of incorporation.

Week 3 — PTRC: Applied once GST is in process and the company is ready to hire.

Within 30 days of incorporation — Auditor Appointment (ADT-1): Statutory requirement under the Companies Act.

Within 180 days — INC-20A: Commencement of business declaration, requiring proof that subscribed capital has been deposited in the company’s bank account.

When these are coordinated properly as a single project rather than handled as separate applications in isolation — which is how many founders end up managing them — the total setup is complete, the company is fully operational, and there are no pending compliance gaps waiting to become problems six months later.


Why Founders in Pune Choose Akhil Amit And Associates

We handle Private Limited Company registration in Pune as a complete end-to-end process — not as a single incorporation service with everything else treated as an afterthought.

This means when you come to us, one team manages your incorporation, your GST registration, Shop Act, Udyam, and Profession Tax — along with your first-year compliance calendar so there are no surprises on INC-20A, auditor appointment, or ROC annual filing deadlines.

We currently manage incorporation and ongoing compliance for over 150 Private Limited Companies and LLPs across Pune and Pimpri Chinchwad, including startups, growing MSMEs, and foreign-owned subsidiaries operating in India.

Our offices serve businesses across Pune, Pimpri Chinchwad, Hinjewadi, Wakad, Baner, Kharadi, Bhosari, and Chakan.

If you are planning to register a Private Limited Company in Pune and want a clear, honest conversation about the complete process, the realistic timeline, and what it will cost — we are happy to help.


Frequently Asked Questions

Is GST registration mandatory for all Private Limited Companies in Pune?

Not immediately for all companies — but practically yes for most. Any company providing services or goods to clients in other states must register from day one regardless of turnover. Companies selling through e-commerce platforms must also register immediately. For businesses operating only within Maharashtra, registration becomes mandatory once turnover crosses ₹20 lakh (services) or ₹40 lakh (goods). Voluntary registration before crossing the threshold is advisable for any company seeking corporate clients.

What is the total cost of Private Limited Company registration in Pune with all post-incorporation registrations?

The total cost depends on your authorised capital, state stamp duty, number of directors, and the specific registrations required for your business type. We provide transparent, all-inclusive quotes covering incorporation and all applicable post-incorporation registrations — contact us for a specific estimate based on your requirements.

How long does the complete setup take — from incorporation to fully operational?

With complete documentation and professional management: 3 to 5 weeks. The bottleneck is rarely the MCA. It is usually the current account opening timeline and the sequence coordination across multiple registrations.

Can a company start billing clients before GST registration?

If GST registration is mandatory for your business (interstate supply, e-commerce, or turnover above threshold), billing without a GSTIN is non-compliant and puts your client’s ITC at risk. If your turnover is below the threshold and all business is within Maharashtra, you can technically invoice without GST — but most corporate clients will still ask for a GSTIN as part of vendor onboarding.

Do I need a Shop Act licence if I am working from home?

If your registered office address is a residential property and you are not employing staff from that location, Shop Act registration may not be immediately required. However, as soon as you have an office space or employees, it becomes mandatory. We recommend taking professional advice for your specific situation.


Akhil Amit And Associates is a Chartered Accountant firm in Pune and Pimpri Chinchwad providing complete Private Limited Company registration, Startup India Registration, GST, Shop Act, Udyam, Profession Tax, ROC compliance, Income tax, and FEMA advisory services to startups, MSMEs, and growing businesses.

What is Startup India Seed Fund Scheme?

Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. Eligible startups can apply for the scheme on the Startup India portal. The Seed Fund will be disbursed to selected startups through eligible incubators across India.

Who can apply to SISFS?

A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application is invited to apply for the scheme. Detailed eligibility criteria can be found at https://seedfund.startupindia.gov.in/about.
To get DPIIT-recognized, please visit https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html

How much seed funding can a startup receive under the scheme?

Seed Fund to an eligible startup by the incubator shall be disbursed as follows:

  1. Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials. The grant shall be disbursed in milestone-based installments. These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.
  2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments
  3. A startup applicant can avail of seed support in the form of grants and debt/convertible debentures each once as per the guidelines of the scheme.

Can I apply for the scheme as an individual entrepreneur, or do I need a team?

No, individual entrepreneurs are not eligible to apply for support under the scheme. Only DPIIT-recognized startups can apply for the SISFS. To get DPIIT-recognized, please visit https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html

Does the scheme support startups from specific sectors?

SISFS is a sector agnostic scheme, which means that startups from any sector can apply for the scheme. However, preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, textiles, etc. This list of sectors is indicative and not exhaustive.

Are there any minimum education qualification criteria for founders to apply for SISFS?

There is no minimum education qualification required for founders to apply for SISFS.

Are there any exemptions to any of the eligibility criteria?

No, there are no exemptions to any of the eligibility criteria. All the criteria must be met on the date of application submission.

What is a DPIIT-recognized startup?

An entity shall be considered a “Startup” –

  1. If it’s incorporated as either a Private Limited Company or Registered Partnership Firm or Limited Liability Partnership. A sole proprietorship or a public limited company is not eligible for the startup
  2. If it is up to 10 years from the date of its incorporation/ registration,
  3. If its turnover for any of the financial years has not exceeded INR 100 crore
  4. If it is working towards innovation, development, or improvement of products or processes or services, or if it is a scalable business model with a high potential for employment generation or wealth creation
  5. Should not have been formed by splitting up or reconstructing a business already in existence.

To get DPIIT-recognized, please visit
https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html

What all can I use the seed fund for?

Seed fund shall strictly not be used by startups for the creation of any facilities and shall be utilized for the purpose it has been granted for. A grant can be used for validation of Proof of Concept, prototype development, or product trials. A debt/ convertible debenture can be used for Market entry, commercialization, or scaling up.

Application Process

How can I apply to SISFS?

An online call for applications is hosted on an ongoing basis on the Startup India portal and will be opened soon. DPIIT-recognized startups can log in using the credentials used during the startup recognition process to apply for the scheme.

Is the SISFS application process completely online?

The application submission is completely online, and no physical submission of documents is required.

Is there a fee for applying to this scheme?

There are no application fees for the scheme. Even after the selection of a startup by an incubator for assistance under this scheme, the startup shall not be charged any fees. The incubator or any of its staff members shall not charge any fee in cash or in-kind from applicants or beneficiaries under the scheme for any process of selection, disbursement, incubation, or monitoring.

Why is the application form allowing me to apply to 3 incubators?

The scheme aims to maximize the chances of each startup applicant getting supported through seed funds. It also aims to give startups an opportunity to get supported by a relevant incubator that can give the necessary guidance to them. Thus, we give startups an option to apply to 3 different incubators according to their preference. For example, if incubators at Preference 1 and Preference 2 both select a startup, the funding shall be given by the Preference 1 incubator. If Preference 1 incubator rejects and Preference 2 incubator selects, the funding shall be given by the incubator at Preference 2, and so on.

How do I choose the incubators to apply to?

The incubator preference should be filled at the startup applicants’ discretion. Applicants can choose incubators basis their sector, stage, business needs, and strategic goals. Details of the incubators which are part of the scheme will be available on the Seed Fund Portal soon.

I can see an option to apply either for a grant or convertible debenture or loan instruments. What is the difference between these? How do I choose?

A grant and debt/convertible debenture are different financing instruments to cater to different startup needs. The following table can help an applicant startup decide which instrument shall suit their needs better. The final decision on this should be at the startup applicants’ discretion.

ParameterGrantDebt/Convertible Debenture
StageIdeation StageCommercialization & Scale-up stage
Need to be Catered by the fundValidation of Proof of Concept, Prototype development, or Product trialsMarket entry, commercialization, or scaling up
Max. funding amountUp to Rs. 20 LakhsUpto Rs. 50 Lakhs
Financing TermsUnder this scheme, the grant will be disbursed in milestone-based installments. These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.For startups being supported through convertible debentures, debt, or debt-linked instruments, funds shall be provided at a rate of interest of not more than the prevailing repo rate. The tenure should be fixed at the time of sanctioning the loan by the incubator, which shall be not more than 60 months (5 years). A moratorium of up to 12 months may be provided for the startups. Because of the early stage of the startups, this shall be unsecured and no guarantee from the promoter or third party will be required.

What are the terms and conditions of seed fund under the scheme?

The scheme guidelines are available at https://www.startupindia.gov.in/content/dam/invest-india/Templates/public/Guidelines%20for%20Startup%20India%20Seed%20Fund%20Scheme.pdf

Is the information provided by me in the application form kept confidential? – Startup India Seed Fund Scheme

We maintain the confidentiality of all the proposals we receive under the scheme. I only shared your application with the incubators you apply to for the purpose of evaluation, and with the EAC for the purpose of monitoring.

Do I need to be physically present at an incubator’s premises to avail of seed funds under this scheme?

To apply for the scheme, it is not mandatory to be physically present at the incubator’s location. For startups being monitored virtually by the incubator, it is required for both parties to touch base every 30 days. This is to ensure that an incubator will be able to keep a check on the progress of the startup and a startup will take guidance for their business from the incubator.

Can I apply to the Startup India Seed Fund Scheme again after receiving a rejection?

Yes, you can apply to the SISFS again after 3 months of receiving a rejection. This buffer time is given to ensure that you have worked on the feedback received from incubators and are ready to be considered again.

Evaluation Process

Who is going to review my application?

The application of each startup will be reviewed by an Incubator Seed Management Committee (ISMC) formed by the incubators you apply to. The committee will also be responsible for future assessment of the performance of the startup and disbursement of further tranches. Each ISMC constitutes of the following members:

  1.  Nominee of Incubator (Chairman)
  2.  A representative from the State Government’s Startup Nodal Team
  3.  A representative of a Venture Capital Fund or Angel Network
  4.  A domain expert from the industry
  5.  A domain expert from academia
  6.  Two successful Entrepreneurs
  7.  Any other relevant stakeholder

What are the parameters for the evaluation of startup applicants?

CriteriaDetails
Is there a need for this Idea?Market size, what market gap is it filling, does it solve a real-world problem?
FeasibilityFeasibility and reasonability of the technical claims, the methodology used/ to be used for PoC and validation, a roadmap for product development
Potential ImpactCustomer demographic & the technology’s effect on these, national importance (if any)
NoveltyUSP of the technology, associated IP
TeamStrength of the team, Technical and business expertise
Fund Utilization PlanRoadmap of money utilization
Additional ParametersAny additional parameters considered appropriate by the incubator
PresentationOverall assessment

What is the process of evaluation?

The startups shall be selected through an open, transparent, and fair process, comprising, inter-alia:

  1. Startups submit their application on the Startup India portal and an email confirmation is shared with them. Applicants can apply for seed funds to any three incubators selected as disbursing partners for this scheme in order of their preference.
  2. All applications received will be shared online with respective incubators for further evaluation.
  3. For all incomplete applications, a prompt for resubmission will be sent to the startup.
  4. The incubators shall shortlist applicants as per eligibility criteria
  5. Eligible applications will be evaluated by Incubator Seed Management Committee (ISMC) using the following criteria:
CriteriaDetailsWeightage (%)
1Is there a need for this Idea?Market size, what market gap is it filling, does it solve a real-world problem?p
2FeasibilityFeasibility and reasonability of the technical claims, methodology used/ to be used for PoC and validation, roadmap for product developmentq
3Potential ImpactCustomer demographic & the technology’s effect on these, national importance (if any)r
4NoveltyUSP of the technology, associated IPs
5TeamStrength of the team, Technical and business expertiset
6Fund Utilization PlanRoadmap of money utilizationu
7Additional ParametersAny additional parameters considered appropriate by the incubatorv
8PresentationUSP of the technology, associated IPOverall assessment
100%
  1. The incubator may shortlist applicants based on their evaluation for a presentation before ISMC
  2. ISMC shall evaluate applicants based on their submissions and presentations and select startups for Seed Fund within 45 days of receipt of the application
  3. Selected startups shall receive seed funding under the respective incubator that selects them as beneficiaries as per their preference shared during application (for example, if incubators at Preference 1 and Preference 2 both select a startup, the funding shall be given by the Preference 1 incubator. If Preference 1 incubator rejects and Preference 2 incubator selects, the funding shall be given by the incubator at Preference 2, and so on.)
  4. All applicants will be able to track the progress of their application on the Startup India portal on a real-time basis
  5. Applicants who are rejected will also be notified through email.

How much time will it take for my application to get processed?

After the receipt of the application, each Incubator shall evaluate applicants based on their submissions and presentations and select startups for the Seed Fund within 45 days.

How can I track the status of my application?

Once the startup has submitted its seed fund scheme application, a dashboard can be accessed using their login credential to check the real-time application status.

After Selection of Startups

I had filled the order of preference for incubators while applying. Can I change this preference order after the application?

Applications once filled and submitted are final. The preference order of the incubator cannot be changed at a later stage.

I have been selected for a seed fund, but the quantum of fund/ terms and conditions being set by the incubator are not agreeable to me. What should I do?

The quantum and terms for the seed fund assistance are to be negotiated between the startup and the incubator only. The mandatory elements of the scheme can be seen in the Guidelines on https://dipp.gov.in/sites/default/files/Guidelines-FundScheme-Startup-29January2021.pdf, anything beyond this can be negotiated. In case of any issue, kindly reach out to us using the grievance form at https://seedfund.startupindia.gov.in/contact

I need to hire a legal or financial consultant for my seed fund discussions with the incubator. Who will bear the cost of these services?

The startup shall bear the cost of any consultants required to guide them through documentation, negotiations with incubator, signing of the agreement with incubator, reporting progress after approval of seed fund, etc. Hiring such an external consultant is not mandatory at all, and shall be at the discretion of the startup.

I have been selected for a seed fund. Is it mandatory to sign a legal agreement with the incubator?

Yes, it is mandatory to sign a legal agreement with the incubator to avail of the seed fund you have been granted.

I had applied for a certain amount of seed fund, but the approved amount is lower/higher. Can I negotiate this?

The applicant can discuss the quantum of the seed funds and the milestones associated with the tranches to be disbursed by the Incubator Seed Management Committee. The decision of the Committee shall be final.

Will my living expenses be borne if I want to be physically incubated at the incubator that is funding me?

The selected incubator shall provide physical infrastructure to the selected startups for regular functioning, support for testing and validating ideas, mentoring for prototype or product development or commercialization, and developing capacities in finance, human resources, legal compliances, and other functions. They are also expected to provide networking with investors and opportunities for showcasing at various national and international events. Any other expenses, including living expenses, shall be borne by the startup.

How much time will it take for the first installment of the seed fund to be released to me?

For grants, the first installment to any selected startup shall be released not more than 60 days from receipt of application from the startup. The startup shall submit the interim progress update and utilization certificate to initiate the release of a subsequent installment of the grant. For debt or convertible debentures, a similar timeline will be aimed, but it is understood that due diligence and documentation in these cases can be sometimes time-consuming.

Where can I receive the seed funds?

Startups will receive the funds in their company bank accounts.

How often do I have to report back on my progress after receiving a seed fund?

Each startup will be required to touch base with the incubator team and share updates with them at least once in 15 days via videoconferences or physical meetings. These updates should be shared on the scheme dashboard, at least on a monthly basis. In the case of milestone-based disbursements, the startup shall submit the interim progress update and utilization certificate to initiate the release of a subsequent installment of the grant. The startup shall also submit the final report and audited utilization certificate at the end of the project’s duration.

I have been selected for a seed fund, but I would not like to take the process forward. What do I do?

A startup can choose to not avail of the support being offered to them under the scheme. The procedure for the same depends on the stage of the startup in the application process.

  1. If the startup has been selected and the seed funding has been approved, they will be required to write a short letter mentioning the reason to pull out of the process. Post the acknowledgment of the letter, they will find a cancel application button on the application tracker tab of their dashboard, which will allow them to cancel their application.
  2. If the startup has already received any seed fund, it will be required to write a short letter mentioning the reason to pull out of the process. Post acknowledgment of the letter, they will be required to return the fund within 15 days. Post the acknowledgment of the refund, they will find a cancel application button on the application tracker tab of their dashboard.

What if my startup fails after receiving the seed fund? Will there be any liability on me or my company?

It is understood that every startup cannot be successful. The legal agreement that you sign with the incubator will have provisions related to the failure of startups supported under the scheme. For failed ventures, the entrepreneur shall share his/her learnings and the reasons for failure in the report and submit this, along with the utilization certificate for the fund amount.

I have some complaints regarding the incubator funding for me. Who shall I reach out to?

In case of any issue, kindly reach out to us using the grievance form at https://seedfund.startupindia.gov.in/contact

Chartered Accountant in Pimpri Chinchwad