Post-Funding Checklist: Your First 30 Days After Closing

The wire just hit. Now what?

You refreshed your bank statement for the seventh time today and there it is. The round closed. The money is real. After months of pitching, follow-ups, and term sheet negotiations, you have capital in the bank.

Take a breath. Maybe take your co-founder out for a meal. You earned it.

But here is the hard truth: the next 30 days will define whether that capital creates value or creates chaos. Most first-time founders lose 2-3 weeks to confusion after closing. They miss filing deadlines. They hire without offer letter templates. They forget to update their cap table. They set up payroll on spreadsheets.

This checklist exists because those mistakes are avoidable. We have compiled every legal, financial, HR, and operational task you need to complete in the first 30 days after closing your round in India. Week by week. Task by task.

Week 1: Legal and compliance

The first week is paperwork. It is not exciting but it is non-negotiable. Miss deadlines here and you face penalties from the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI).

Execute the Shareholders' Agreement (SHA)

If you signed a term sheet, the SHA is the binding legal document. It covers rights, obligations, board composition, protective provisions, drag-along/tag-along rights, and exit clauses. Your lawyer should have the final draft ready before the wire hits. Get it signed by all parties within the first 2-3 days.

Key things to verify before signing: investor consent rights match what was agreed in the term sheet, the liquidation preference is correct (1x non-participating is standard at seed), and anti-dilution provisions are broad-based weighted average, not full ratchet.

Board resolution and share allotment

Pass a board resolution approving the allotment of shares to your investors. This needs to happen within 60 days of receiving the money. Do not wait until day 59. Get it done in week 1.

Your Company Secretary (CS) will handle the formalities, but you need to ensure:

• Board meeting notice sent 7 days in advance (or shorter with director consent)
• Resolution covers: number of shares, price per share, class of shares (equity/CCPS), and the names of allottees
• Minutes are recorded and filed

RoC filings

Two filings with the Registrar of Companies are triggered immediately after share allotment:

Filing	Form	Deadline	Penalty
Return of allotment	PAS-3	30 days from allotment	Rs 1,000/day of delay
Resolution filing (if CCPS or special resolution)	MGT-14	30 days from passing resolution	Rs 1,000/day of delay

FEMA compliance for foreign investment

If any investor is a foreign entity or NRI, you trigger Foreign Exchange Management Act (FEMA) compliance. This is critical and time-sensitive.

• FC-GPR filing: File with the RBI within 30 days of share allotment. This reports the foreign investment. Late filing invites compounding penalties.
• Pricing: For CCPS issued to foreign investors, the price must comply with FEMA pricing guidelines. Get a valuation certificate from a registered valuer or a chartered accountant.
• KYC: Ensure KYC of foreign investors is complete and filed with your Authorized Dealer (AD) bank.
• FDI sector caps: Confirm your sector allows 100% FDI under the automatic route. Most tech startups qualify, but verify.

Update your cap table

Your cap table is now your most important financial document. After allotment, update it immediately to reflect:

• New shares issued (equity or CCPS)
• Post-money ownership percentages
• ESOP pool (typically 10-15% carved out pre-money)
• Vesting schedules for founder shares if applicable
• Conversion ratios for CCPS

Use a cap table tool (Trica Equity, LegalPay, or even a well-structured spreadsheet). Do not track ownership in your head.

Week 2: Financial setup

You have money. Now set up the systems to spend it wisely and track every rupee. Investors expect clean books from day one.

Open a separate operating account

If you have been running everything from a single current account, open a dedicated operating account. Keep your funding account separate. This makes reconciliation easier and gives you a clear view of burn rate.

Some founders open three accounts: one for the investment corpus, one for operations, and one for payroll. This is good discipline especially after a larger round (Rs 5Cr+, ~$600K+).

Set up accounting: Indian GAAP vs Ind AS

Most startups at seed stage follow Indian GAAP (Accounting Standards issued by ICAI). You are not required to follow Ind AS unless your net worth exceeds Rs 250 crore or you are listed.

However, if your investors are institutional VCs, they may request Ind AS-aligned financials for portfolio reporting. Clarify this in week 2.

At minimum, set up:

• Chart of accounts structured for SaaS/tech (revenue recognition by type, hosting costs, employee costs as separate categories)
• Monthly P&L and balance sheet cadence
• Cash flow tracking (your burn rate is now the single most important metric)

Hire a CA firm

If you do not have a chartered accountant firm on retainer, get one now. You need them for:

• Monthly GST filing
• TDS computation and deposit
• Quarterly advance tax estimates
• Annual statutory audit
• Valuation certificates for future rounds

Budget: Rs 25,000-60,000/month (~$300-$720) for a seed-stage startup, depending on transaction volume. This is not the place to cut costs.

Set up expense policies

Before your team starts spending, establish clear policies:

• Expense approval thresholds (e.g., anything over Rs 10,000 needs founder approval)
• Reimbursement categories and limits (travel, meals, software subscriptions)
• Corporate credit card policy (if applicable)
• Vendor payment approval workflow

Write these down. Even a one-page document is better than nothing. Ambiguity around money creates trust issues in small teams.

Week 3: HR and payroll

This is where most funded startups stumble. You are about to hire aggressively. Without HR infrastructure, you will spend the next six months firefighting compliance issues instead of building product.

Register for PF, ESI, and Professional Tax

These are not optional once you start hiring employees:

Registration	When required	Monthly filing
Provident Fund (PF)	20+ employees (voluntary at any size)	ECR filing by 15th of next month
ESI	10+ employees, wages under Rs 21,000/month	Filing by 15th of next month
Professional Tax (PT)	State-dependent, typically from first employee	Monthly or annual depending on state

Pro tip: register for PF voluntarily even below 20 employees. It signals legitimacy to hires from larger companies and you will need it eventually.

Set up payroll processing

Stop running payroll on spreadsheets. After funding, you need a system that handles:

• Salary structuring (Basic + HRA + Special Allowance for tax optimization)
• TDS on salaries (Section 192) with correct slab computation
• PF and ESI deductions and employer contributions
• Professional Tax deduction (state-specific rates)
• Payslip generation with statutory breakdowns
• Full & Final settlement for exits

Create compliant offer letter templates

Your first few hires probably got informal offer emails. That does not work anymore. Create standard offer letter templates that include:

• Designation, department, and reporting manager
• CTC breakup with statutory components (Basic, HRA, PF contribution, gratuity provision)
• Probation period and confirmation terms
• Notice period (30-90 days is standard)
• Non-compete and confidentiality clauses
• ESOP grant details (if applicable)
• Joining date and documents required

Get D&O insurance

Directors and Officers (D&O) insurance protects founders and board members from personal liability for decisions made in their capacity as directors. Most institutional investors require it as part of the SHA.

Cost: Rs 1.5-4 lakh/year (~$1,800-$4,800) for a seed-stage startup with Rs 1-2 crore coverage. Providers in India include ICICI Lombard, HDFC Ergo, and Bajaj Allianz. Get quotes in week 3, finalize in week 4.

Week 4: Operations and governance

By now your legal and financial foundations are in place. Week 4 is about building the operating rhythm that will carry you through the next 12-18 months of runway.

Board meeting cadence and MIS reporting

Under the Companies Act, 2013, you must hold a minimum of 4 board meetings per year, with no more than 120 days between consecutive meetings. In practice, most VC-backed startups hold board meetings quarterly.

Set up a recurring calendar invite now. Standard agenda for early-stage board meetings:

• Financial review (P&L, balance sheet, cash position, burn rate)
• Key metrics dashboard (revenue, users, pipeline)
• Hiring update and org chart
• Product roadmap progress
• Compliance status
• Any matters requiring board approval

Investor update templates

Investors expect monthly updates. The founders who communicate well get faster follow-on rounds and more help from their investors. Set up a template that covers:

• Highlights: 3 wins from the month
• Lowlights: 2 challenges (being honest builds trust)
• Metrics: Revenue, MRR, burn, runway, team size
• Asks: Specific intros, advice, or help needed

Send it on the first working day of every month. Be consistent. A founder who sends 12 investor updates in year one will always raise faster than one who sends 3.

Hiring plan and org design

You raised money to grow. Build a hiring plan that maps to your 12-month budget:

• List every role you need to hire, by quarter
• Estimate CTC for each role (use data from Glassdoor, AmbitionBox, or your network)
• Calculate your total monthly burn after all planned hires
• Ensure you maintain 12+ months of runway at all times

Common mistake: hiring 8 people in month 2 because you finally have money. Hire 2-3 critical roles first. Prove the org design works. Then scale.

Set 90-day OKRs

Give your team (and yourself) clarity for the next quarter. Pick 3-4 objectives with measurable key results. Share them with your investors. This creates accountability without micromanagement.

Example OKR for a post-seed SaaS startup:

• Objective: Achieve product-market fit signal
• KR1: Reach 50 paying customers
• KR2: Hit Rs 5 lakh MRR (~$6,000)
• KR3: Achieve 80% monthly retention

Common post-funding mistakes

We see these repeatedly across early-stage Indian startups. Avoid all six:

1. Missing FEMA deadlines: FC-GPR has a 30-day window. Missing it means compounding applications to RBI, which can take 6-12 months and cost Rs 2-5 lakh in penalties.
2. Not registering for PF/ESI before hiring: Retrospective registration triggers back-payments with interest. Register proactively.
3. Running payroll on spreadsheets: One TDS computation error can trigger a notice under Section 201. Automate from day one.
4. Hiring without offer letters: If an early employee claims they were promised equity verbally, you have no documentation to reference. Everything in writing.
5. Not tracking burn rate weekly: Founders who check burn monthly often discover runway problems too late. Weekly cash tracking is essential.
6. Ignoring investor communication: Going silent for 3 months after closing is the fastest way to lose investor goodwill. Monthly updates, no exceptions.

The 30-day checklist

Print this. Pin it to your wall. Check off each item as you complete it.

Week 1 — Legal

• Execute Shareholders' Agreement (SHA)
• Pass board resolution for share allotment
• Allot shares to investors
• File Form PAS-3 with RoC (within 30 days of allotment)
• File Form MGT-14 if CCPS or special resolution
• File FC-GPR with RBI (if foreign investment, within 30 days)
• Get valuation certificate from registered valuer (for FEMA pricing)
• Complete KYC filing with AD bank for foreign investors
• Update cap table with new shareholding
• Update statutory registers (Register of Members, Register of Charges)

Week 2 — Financial

• Open separate operating bank account
• Set up chart of accounts for funded startup
• Hire CA firm (if not already retained)
• Set up monthly P&L, balance sheet, and cash flow reporting
• Create expense policies and approval workflows
• Estimate quarterly advance tax liability
• Confirm accounting standard with investor (Indian GAAP vs Ind AS)
• Set up GST return filing calendar

Week 3 — HR & Payroll

• Register for Provident Fund (EPFO)
• Register for ESI (if applicable)
• Register for Professional Tax (state-specific)
• Register under Shops & Establishment Act
• Set up payroll processing system
• Structure salaries with statutory components (Basic, HRA, PF, Gratuity)
• Create offer letter and employment agreement templates
• Set up leave policy (earned leave, sick leave, casual leave)
• Get D&O insurance quotes
• Set up POSH committee (if 10+ employees)

Week 4 — Operations

• Schedule quarterly board meetings for the year
• Set up investor update template and monthly cadence
• Build 12-month hiring plan with CTC estimates
• Set 90-day OKRs
• Set up weekly burn rate tracking
• Finalize D&O insurance
• Create MIS reporting template for board meetings

Frequently asked questions

Do I need a Company Secretary after funding?

Under the Companies Act, a company with paid-up capital of Rs 5 crore or more must appoint a full-time Company Secretary. Below that threshold, you can use a CS on retainer for statutory filings. Most seed-stage startups use a retainer arrangement at Rs 5,000-15,000/month.

What happens if I miss the FC-GPR filing deadline?

You need to apply for compounding with the RBI. The process takes 6-12 months, involves a penalty (typically 2-3x the filing fee), and creates friction in your next fundraise because due diligence will flag the non-compliance. Do not miss this deadline.

Should I register for PF before hiring my first employee?

You can. PF registration is voluntary for companies with fewer than 20 employees. We recommend registering as soon as you plan to hire because the process takes 2-4 weeks and you do not want it blocking an offer letter.

When does the Shops & Establishment Act registration need to happen?

Within 30 days of starting business operations in a state. If you have an office (even a co-working space in some states), you need this. Penalties for late registration vary by state but are typically Rs 1,000-5,000.

How much should I budget for compliance costs in year one?

For a seed-stage startup with 5-20 employees, budget approximately Rs 3-6 lakh/year (~$3,600-$7,200) covering: CA retainer (Rs 25K-60K/month), CS retainer (Rs 5K-15K/month), payroll processing, and insurance. This is roughly 2-4% of your annual burn if you raised Rs 1-3 crore.