Due Diligence

Due diligence for Investors:

Whenever an Investor invests in a start-up it’s very important to conduct due diligence for the following area:

Tax Due diligence:

In this the books are analysed and check to confirm if all the tax compliances have been complied with. This is very important to ensure tax that there is no future tax liability and penalties. It is also important so as to verify the sales, purchases and more.

The areas covered in this section are:

  • GST
  • TDS
  • Income Tax
  • MAT
  • Pending Litigations
  • Potential Litigations
  • Notices and assessments if any

Legal Due Diligence:

In this all the legal agreements, secretarial records, employees’ contracts, vendor agreements, secretarial register etc are checked. This is the most important check to confirm the shareholding, the roles and responsibilities of the founders, the terms with other shareholders, the status of annual returns and the transactions with the related parties.

  • Employee agreements
  • Vendor Agreements
  • Secretarial records including minutes books, statutory registers, shareholding, share allotment forms, terms of issue of shares, related party transactions, general meeting documents
  • All legal agreements between founders, shareholders, banks and lending institutions
  • Labour law compliances
  • Local body laws
  • All registrations needed to run a business in place

Business Due Diligence:

With this you actually get to know the business details like the sale, the breakup of sales, product wise revenue, product wise margins, cost of customer acquisition, monthly growth, offline and online sales, gross profit margin on each product, overheads etc.

This is the main report which will decide whether company is investible or not.

We can assist the domestic as well as foreign investors with the detailed due diligence report for each section.

documents required for company registration

Assisting start-ups with due diligence:

advantages of one person company registration

Whenever a start-up goes through a due diligence there are 100s of issues which reflect in a report. Its very important that you hire a professional to handle all the queries and solve the due deligence issues then and there. We can assist startups during due deligence with following activities;

  • Co-ordinating with due diligence team
  • Answering all the questions they have
  • Getting the documents prepared which are not available
  • Making sure that there are no adverse remarks in the Due Diligence report

Working for the start-up and not the investor.

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