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Complete Labour Law & Payroll Compliance for Startups Preparing to Scale

City Snap

Due Diligence, EPF/ESIC, ESOP Compliance & DPIIT Benefits—All Managed End-to-End for Fast-Growing Tech Teams

Startups grow fast—but compliance gaps grow even faster. From investor due diligence to employee classification, even small mistakes in EPF/ESIC, payroll, ESOP structures, or local labour laws can derail a funding round. We help early-stage and scaling startups build a clean, compliant foundation by managing all labour, payroll, and statutory obligations under one platform.

Fundraise Ready Compliance. Secure Your Due Diligence with a Clean Slate.

The moment your startup signs a term sheet, investor due diligence begins. A significant percentage of funding delays and valuation haircuts happen because of a messy cap table or non-compliant payroll. Statutory compliance is not just about avoiding fines; it's about validating your business structure to external investors.

The Startup Risk

Misclassification of your early engineers or consultants as freelancers (avoiding EPF/ESIC) is a guaranteed red flag that leads to retrospective liability demands during due diligence, potentially stalling your entire funding round.

The EPFDesk Investor Confidence Guarantee

We specialize in bringing early-stage companies to 100% compliance rapidly. We handle the complex labour laws (PF, ESI, Gratuity) and ensure your records are perfectly audit-ready, allowing you to focus on product and scale.

Critical Compliance Checkpoints for Funding Rounds

We focus on the three areas where investors find the highest risk exposure in growing startups

EPF/ESIC Compliance

Startups frequently misjudge the 10-employee ESIC and 20-employee EPF thresholds, leading to delayed registration and significant back-dated liabilities. We perform a complete retro-fit and compliance clean-up, calculating and regularizing outstanding dues and securing zero-liability certificates—ensuring your startup is fully compliant and prepared for investor due diligence.

Employee Classification

Many startups misclassify full-time engineers and core team members as “consultants” to avoid EPF/ESIC contributions, which becomes a major red flag during audits and investor due diligence. We conduct a thorough legal classification audit, review service agreements, and reclassify roles in line with the Code on Wages definition of ‘wage’. Our process ensures correct payroll implementation and 100% compliance, eliminating the risk of penalties, back-dated liabilities, or legal challenges.

POSH & Workplace Safety

Startups often overlook the mandatory requirement to form an Internal Complaints Committee (ICC) under the POSH Act—even if they have a small or fully remote team. This creates significant legal and reputational exposure during audits or funding rounds. We deliver remote-ready POSH compliance, including ICC formation, mandatory employee training, and timely Annual Report filing, ensuring your startup meets every statutory requirement and stays fully protected.

Enabling Startup Growth & Incentives

We leverage government initiatives to provide compliance ease while ensuring security for your employees.

DPIIT Recognition & Self-Certification

For recognized startups, we guide the process of self-certifying compliance for $6$ key Central Labour Laws via the Shram Suvidha Portal, providing a significant breather from inspections for the first $5$ years.

ESOP Statutory Management

We assist in setting up the statutory documentation for ESOP schemes, ensuring the salary and contributions structure aligns with the Income Tax Act, and confirming that the non-cash components (like ESOPs) are correctly treated for statutory contributions.

Automated Shops & Establishment Act Compliance

For tech and remote-first teams, we manage the state-specific Shops & Establishment Act registration and necessary annual filings, ensuring your physical office/registered office address is legally compliant.

New Code Transition

We prepare your compensation and employment contracts to be future-proof for the incoming Code on Wages, 2019, especially concerning the definition of 'wages' and the mandatory gratuity for fixed-term employment contracts.