India

India has emerged as a dynamic destination for entrepreneurship, supported by policy reforms, digital infrastructure, and a growing investor ecosystem. However, regulatory compliance for new companies remains one of the most complex aspects of starting and scaling a business. New companies often face a dense legal framework involving multiple authorities, evolving regulations, and procedural requirements. A clear understanding of these challenges is essential for founders who aim to build a compliant and sustainable business. This article examines the key regulatory hurdles new companies encounter in India, along with practical legal insights to manage compliance effectively. Understanding the Legal Landscape for New Businesses India follows a structured regulatory regime governed by various central and state laws. The legal framework includes company law, taxation law, labour law, environmental norms, and sector specific regulations. The primary legislation governing incorporation and corporate governance is the Companies Act, 2013. New businesses must interact with multiple regulatory bodies such as the Ministry of Corporate Affairs, Income Tax Department, Goods and Services Tax authorities, and sector regulators. Each authority imposes compliance obligations which may overlap or change over time. This creates a layered compliance environment which often confuses first time entrepreneurs. Regulatory Compliance for New Companies The concept of Regulatory Compliance for New Companies refers to adherence to statutory requirements from the stage of incorporation to ongoing operations. Compliance is not limited to registration. It extends to financial reporting, taxation filings, governance practices, employee welfare norms, and disclosures. Failure to comply can result in penalties, legal proceedings, reputational damage, and even business closure. Therefore, compliance must be viewed as a core business function rather than a procedural formality. Key Regulatory Challenges Faced by New Companies Complex Incorporation Procedures The process of incorporating a company in India has improved through digital platforms. Yet, new founders often struggle with documentation, selection of business structure, and regulatory approvals. Choosing between a private limited company, LLP, or other structures requires legal clarity and strategic foresight. Many startups underestimate the importance of drafting accurate incorporation documents such as Memorandum and Articles of Association. Errors at this stage may create complications in governance and investor relations later. Multiple Registrations and Licences Beyond incorporation, businesses must obtain various registrations depending on their operations. These include GST registration, Shops and Establishment licence, Professional Tax registration, and sector specific licences. For instance, a fintech startup may require approval from the Reserve Bank of India, while a food business must comply with FSSAI regulations. The need to deal with multiple authorities increases administrative burden and delays operational readiness. Taxation and GST Compliance India’s tax regime presents one of the most challenging aspects of regulatory compliance. New companies must understand corporate tax obligations, GST filings, TDS deductions, and advance tax payments. GST compliance involves regular return filing, invoice matching, and reconciliation. Frequent amendments in GST rules often create confusion. Startups with limited resources may struggle to maintain accurate records, leading to penalties. Labour Law Compliance Employment regulations in India are governed by a mix of central and state laws. These include laws relating to wages, social security, workplace safety, and employee benefits. New companies must comply with requirements such as Provident Fund contributions, Employee State Insurance, and gratuity provisions. Failure to adhere to labour laws may result in legal disputes and financial liabilities. Compliance becomes more complex when businesses expand across multiple states due to varying state regulations. Corporate Governance and Reporting Obligations Once incorporated, companies must maintain proper governance practices. This includes conducting board meetings, maintaining statutory registers, filing annual returns, and financial disclosures. Many startups overlook governance during early growth stages. However, investors and regulators expect strict compliance. Non-compliance may affect funding opportunities and valuation. Data Protection and Privacy Regulations With increasing digitalisation, data protection has become a critical compliance area. Companies handling personal data must ensure secure processing, storage, and usage. India is moving towards a stronger data protection regime. Startups in technology, ecommerce, and fintech sectors must adopt privacy policies, consent mechanisms, and cybersecurity measures. Any data breach may attract regulatory scrutiny and loss of customer trust. Environmental and Sector Specific Regulations Certain industries such as manufacturing, infrastructure, and pharmaceuticals require environmental clearances and regulatory approvals. Compliance with pollution control norms and waste management rules is mandatory. Startups entering regulated sectors must understand industry specific laws from the beginning. Delays in obtaining approvals may disrupt project timelines and increase costs. Frequent Regulatory Changes India’s regulatory environment evolves continuously to align with economic and technological developments. While reforms aim to improve ease of doing business, frequent changes create uncertainty. New companies must stay updated with amendments in tax laws, corporate regulations, and sector policies. Lack of awareness may result in inadvertent non-compliance. Practical Strategies to Manage Regulatory Challenges Addressing regulatory challenges requires a proactive and structured approach. Founders should focus on building a compliance framework from the early stages of business. Engaging legal and financial experts helps in interpreting complex laws and ensuring accurate filings. Technology driven compliance tools can streamline documentation and reporting processes. Regular internal audits also assist in identifying gaps before they become serious issues. Entrepreneurs planning to setup a company in India should conduct thorough legal due diligence. This includes evaluating regulatory requirements specific to their industry and location. Similarly, those looking to register a startup company in India should align their business model with compliance obligations from the outset. Early planning reduces risks and enhances operational efficiency. Importance of Compliance in Building Investor Confidence Investors place significant importance on regulatory compliance. Startups seeking funding must demonstrate transparency, proper governance, and adherence to legal norms. Due diligence conducted by investors often reveals compliance gaps. These gaps may delay funding or reduce valuation. A well-maintained compliance record signal’s reliability and long-term sustainability. Role of Government Initiatives The Government of India has introduced several initiatives to ease compliance for startups. Programmes such as Startup India aim to simplify procedures, reduce regulatory burden, and promote innovation. Online portals for company incorporation, GST registration, and tax filings have improved accessibility. However, effective utilisation of these platforms requires awareness and proper guidance. Entrepreneurs can refer to official government resources such as the Ministry of Corporate Affairs and GST portal for accurate and updated information. Conclusion Regulatory compliance is an integral part of doing business in India. While the legal framework ensures accountability and transparency, it also presents challenges for new companies. Understanding the complexities of regulatory compliance for new companies allows founders to make informed decisions and avoid legal pitfalls. For entrepreneurs planning to register a startup company in India, early awareness of compliance requirements becomes equally important. A structured compliance strategy, supported by professional advice and technology, can transform compliance from a burden into a strategic advantage. Businesses that prioritise compliance from the beginning are better positioned to scale, attract investment, and build long-term credibility in the market. Authored by: Bhushan Shah, Partner The views expressed in this update are personal and should not be construed as any legal advice. Please contact us for any assistance.

Carlyle Group Inc. has acquired a healthcare revenue cycle management entity, EqualizeRCM. Majmudar & Partners advised the sellers on the Indian law aspects of this deal, including corporate, foreign exchange, employment, and intellectual property aspects, and assisted in drafting, negotiating and finalizing the transaction documents.  The team from Majmudar & Partners comprised of Rukshad Davar (Partner and Head of the M&A Practice Group), Rahul Datta (Principal), Bhavya Solanki (Associate) and Priyam Goyal (Associate).  

Thursday, May 7, 2026 | New Delhi Nishant Nigam has announced the rebranding of his practice under the name 3Sixty Law Group, marking an expansion into a multidisciplinary legal and consulting platform. His team and the existing client relationships will move from the erstwhile firm, Goswami & Nigam, which stands dissolved, as its founding partners have chosen to pursue their professional ambitions independently. The name 3Sixty Law Group reflects a clear and forward-looking vision – to offer a truly comprehensive, all-encompassing suite of services spanning law, strategy, and consulting. Conceived as more than a traditional legal practice, the firm aims to evolve into a platform where clients can access legal, strategic, and advisory services through a single, coordinated practice. With the legal landscape increasingly intersecting with business, policy, and strategic advisory, 3Sixty Law Group is built on the belief that clients benefit most from well-rounded, multidisciplinary support. The firm also looks ahead to meaningful collaborations with professionals across domains, with the long-term goal of creating a robust ecosystem of expertise. While the firm is envisioned as a specialised multi-service platform, Nishant will initially focus on his core areas of practice, including commercial arbitration and litigation with an additional focus on labour, employment and industrial relations, and intellectual property enforcement. Senior team members will take the lead on Corporate Advisory, Real Estate, and Data Protection practice areas. Over time, 3Sixty Law Group aims to diversify its offerings across additional practice areas, further strengthening the firm’s full-service capabilities. The firm also maintains an active cross-border practice, with a presence across India and Dubai. Speaking on the new journey and rebranding, Nishant Nigam shared, “3Sixty is not just a name – it represents a philosophy. It stands for completeness, continuity, and perspective. The idea is to approach every client mandate with a 360-degree view, ensuring that legal advice is not given in isolation but is aligned with larger strategic outcomes.” Speaking on the transition, he added, “Co-building our previous practice was an immensely fulfilling journey, and I remain grateful for the trust, effort, and shared vision that went into it. Over time, we felt that the moment was right to focus on our respective paths and grow our practices independently. We continue to wish each other well, and look forward to collaborating at the right place and time.”   About Nishant Nigam Nishant Nigam is a seasoned legal practitioner with a strong focus on commercial arbitration, litigation, and strategic advisory. Having pursued his LLM in International Arbitration and Litigation from University College London, he has, over the years, represented clients in domestic and international arbitration proceedings and regularly advises corporates, government entities, and institutions on complex disputes. Accredited by the Chartered Institute of Arbitrators, he combines in-depth legal expertise with a pragmatic, business-oriented approach. His practice also spans labour and employment, intellectual property enforcement, and commercial disputes, with experience appearing before courts and tribunals at all levels, including the Supreme Court of India. Nishant has been individually recognised in the Benchmark Litigation Asia Pacific Rankings as Future Star for Commercial and Transactions practice area (2026); recognised as a Recommended Lawyer for Prosecution & Strategy – WTR1000 (2026); recognised as a Recommended Lawyer in Intellectual Property and Dispute Resolution practice – Legal 500 (2026); recognised as a Notable Practitioner in Labour & Employment practice – Legal Era Leading Lawyers (2025–2026); recognised as a Notable Practitioner for Labour & Employment – Asialaw (2025); featured in the Forbes Legal Powerlist (Top Individual Lawyers – Above 10 Years’ Experience) (2022); recognised among BW Legal World’s Top 40 Under 40 Lawyers and Legal Influencers (2021); and featured in the India Super 50 Lawyers list by Asian Legal Business (2021).

Tripti is a seasoned legal leader with nearly two decades of diverse experience across the E-commerce, Telecom, Media & Entertainment, and Technology Sectors. She is widely recognized for her strategic insight and strong business acumen in handling complex legal matters, including mergers & acquisitions, private equity, corporate governance, restructuring, regulatory compliance, and general corporate advisory. Prior to joining the Firm, Tripti has held key leadership positions, including Group General Counsel at Cars24 and ShopClues, and senior legal roles at Reliance Big Entertainment, Aircel Limited, and Mahindra Comviva. At Cars24, she played a pivotal role in establishing the company’s legal, compliance, and governance frameworks, while leading high-value transactions, investor engagements, and strategic initiatives. Expressing her perspective on joining the Firm, Tripti shared: “Hammurabi & Solomon Partners stands at the forefront of an evolving legal landscape, and I am pleased to join such a formidable team at a time when the Firm’s depth of expertise provides the clarity and certainty demanded by increasingly intricate cross-border challenges. I look forward to building on the Firm’s legacy of excellence and delivering the strategic foresight our clients expect from a premier legal partner.” Welcoming her to the firm, Shweta Bharti, Managing Partner at Hammurabi & Solomon Partners, remarked: “We are delighted to welcome Tripti to our leadership team. Her extensive in-house experience, combined with her deep understanding of complex transactions and regulatory frameworks, adds significant strength to our Corporate practice. Tripti’s ability to align legal strategy with business objectives will be critical to deepening our corporate offering and driving the Firm’s next phase of growth.” Tripti’s onboarding marks a significant milestone for the Firm as Hammurabi & Solomon Partners celebrates 25 years of excellence. With its leadership strengthened to 19 Partners and a team of around 100 professionals, the Firm is well-positioned to support clients across evolving business landscapes while continuing to build a robust, future-ready leadership bench. About Hammurabi & Solomon Partners Hammurabi & Solomon Partners (HSP) is a full-service law firm, ranked amongst the top 15 law firms in India, known for its strength in arbitration, corporate commercial & M&A, real estate, restructuring & insolvency, and policy, regulation & strategy. Headquartered in Delhi-NCR with a strong presence across Mumbai, Bengaluru, Chennai, Hyderabad, Ahmedabad, Patna, and Ranchi, the firm advises on complex, high-stakes, and multi-jurisdictional matters. HSP is committed to delivering strategic, solution-oriented counsel backed by deep sector expertise and a client-centric approach.