India setup checklists
Three sequenced checklists for a new India operation: getting started, vendor onboarding and banking setup.
Download the workbook
XLSX · 10 KB · no sign-up, no watermark
The order matters. Several steps depend on registrations you cannot start until an earlier one has completed, and the common way a setup runs late is doing them in the wrong sequence.
The banking sheet is written for a foreign-owned Indian entity, which is where the documentation requirements bite hardest.
What is inside
Every sheet and what it holds, so you can tell whether it fits before you download it.
Getting started
Columns: Item · Done · Owner / note
- BEFORE YOU INCORPORATE
- Entity structure decided — wholly-owned subsidiary, LLP, branch or liaison office
- Sector checked against the FDI policy — automatic or approval route
- Registered office address secured with proof and NOC
- Directors identified; at least one resident in India
- DSC obtained for each proposed director and subscriber
- Name reserved through RUN or SPICe+ Part A
- Parent company documents apostilled or consularised
- Board resolution passed by the parent authorising incorporation
- Special power of attorney executed in favour of the India representative
- INCORPORATION
- SPICe+ Part B filed with MOA and AOA
- AGILE-PRO filed for GST, EPFO, ESIC and bank account
- Certificate of incorporation received; CIN recorded
- PAN and TAN received
- Certificate of commencement of business (INC-20A) filed within 180 days
- AFTER INCORPORATION — REGISTRATIONS
- GST registration obtained for each state of operation
- Professional tax registration — employer and employee, per state
- Shops and establishments registration for each premises
- EPFO registration activated (mandatory at 20 employees)
- ESIC registration activated (mandatory at 10 employees in covered areas)
- Import Export Code obtained, if trading across borders
- Trade licence obtained from the local municipal body
- Any sector-specific licence identified and applied for
- FUNDING AND FEMA
- Bank account opened and KYC completed
- Inward remittance received with the correct purpose code
- FIRC and KYC report obtained from the AD bank
- Shares allotted within 60 days of receiving the remittance
- FC-GPR filed within 30 days of allotment
- Valuation certificate obtained where required
- FLA return diarised for 15 July
- FINANCE OPERATIONS
- Accounting system selected and chart of accounts configured
- Opening balances entered and agreed
- Payroll system configured with PF, ESI, PT and TDS logic
- Expense policy issued to employees
- Approval matrix and payment authorisation limits documented
- Banking mandate and signatory list approved by the board
- Vendor master set up with onboarding controls
- Invoice numbering series declared for GST
- E-invoicing configured if turnover requires it
- Statutory calendar loaded into the compliance tracker
- Auditor appointed within 30 days of incorporation
- Statutory registers opened and minute book started
- FIRST NINETY DAYS
- First month closed and MIS pack circulated
- First GST return filed and reconciled to the books
- First TDS remittance made and return diarised
- First payroll run reconciled to statutory remittances
- 13-week cash flow forecast built and reviewed weekly
- First board meeting held and minuted
- Transfer pricing policy documented for intercompany charges
- Completed by
- Approved by
- Date
Vendor onboarding
Columns: Item · Done · Owner / note
- IDENTITY AND REGISTRATION
- Vendor application form completed and signed
- Certificate of incorporation or registration
- PAN verified against the name on the invoice
- GST registration certificate obtained
- GSTIN status checked as active on the GST portal
- MSME / Udyam registration checked — affects your payment deadline
- TAX POSITION
- GST registration status and filing history verified
- TDS section and rate determined for the service being bought
- Lower deduction certificate obtained, if the vendor holds one
- Non-resident vendor: tax residency certificate, Form 10F, no-PE declaration
- Section 206AB check performed for non-filers
- FINANCIAL AND LEGAL DILIGENCE
- Audited financial statements for the last two years
- Bank statements or bank reference
- Trade references taken up
- Litigation and default check performed
- Labour law compliance confirmed for manpower vendors
- EPF and ESI registration verified for manpower vendors
- Insurance certificates obtained — liability, professional indemnity
- COMMERCIAL TERMS
- Written agreement or purchase order in place
- Payment terms agreed and recorded
- MSME payment timeline noted where applicable
- Deliverables, quality standards and acceptance criteria defined
- Penalty and termination clauses agreed
- Confidentiality and data protection terms signed
- BANKING AND SYSTEM SETUP
- Bank account details on letterhead with a cancelled cheque
- Beneficiary verified by penny-drop before the first payment
- Vendor master created with PAN, GSTIN and TDS section recorded
- Payment terms and approval workflow configured
- Purchase authorisation limits set
- Duplicate vendor check performed against the existing master
- Completed by
- Approved by
- Date
Banking setup
Columns: Item · Done · Owner / note
- CHOOSING THE BANK
- Branch network and relationship coverage assessed
- Trade finance and forex capability confirmed
- AD Category-I status confirmed — needed for inward remittance handling
- Digital banking, API and ERP integration reviewed
- Schedule of charges compared across shortlisted banks
- Turnaround time for FIRC and FEMA paperwork discussed upfront
- DOCUMENTS FOR ACCOUNT OPENING
- Certificate of incorporation, MOA and AOA
- PAN and TAN of the company
- Board resolution for account opening and operating mandate
- List of directors with DIN, PAN and address proof
- KYC of authorised signatories with photographs
- Proof of registered office
- Parent company documents, apostilled
- Beneficial ownership declaration
- FATCA and CRS declarations
- ACCOUNT STRUCTURE
- Current account opened for operations
- Separate account for statutory payments considered
- EEFC account opened, if forex earnings are expected
- Fixed deposit or sweep arrangement for surplus funds
- Overdraft or working capital limit discussed
- CONTROLS AND MANDATE
- Operating mandate approved by the board and lodged with the bank
- Dual authorisation set for payments above a defined threshold
- Maker–checker enforced in the payment system
- Beneficiary addition requires a second approval
- Transaction limits set per user
- Positive pay configured for cheques
- Statement access granted to finance and to the auditor
- FEMA AND INWARD REMITTANCE
- Purpose code agreed with the bank before the remittance is sent
- Advance reporting and KYC report completed on receipt
- FIRC obtained and filed
- Allotment made within 60 days of receipt
- FC-GPR filed within 30 days of allotment
- Valuation certificate obtained where required
- ONGOING
- Bank reconciliation scheduled monthly
- Signatory list reviewed whenever a director or employee changes
- Dormant accounts closed
- Charges reviewed annually against the sanctioned schedule
- Completed by
- Approved by
- Date
How to use it
Work top to bottom rather than in parallel. Assign an owner to each line — the items that stall are the ones nobody was named against.
Talk it through with a CA
Thirty minutes on one problem — a cash gap you can’t explain, a notice you don’t understand, books that stopped making sense. You’ll leave with a straight answer and the next two steps. No charge, and no obligation to work with us afterwards.
BizFinAffairs and BizFinLabs are both VCXOS Management and Technologies LLP. Advisory engagements are delivered by BizFinLabs.