DEV Community: Greenwolf Advisors

Bookkeeping Habits That Keep a Small Indian Company Audit-Ready

Greenwolf Advisors — Fri, 30 Oct 2026 05:11:08 +0000

Audits go smoothly when the books are in good shape throughout the year, not when someone scrambles in March. For a small company in India, a handful of consistent habits makes the annual audit and tax filings far easier. This is general guidance, not a substitute for professional advice.

1. Record transactions promptly

Enter invoices, bills and bank entries within days, not months. The longer you wait, the harder it is to recall what a payment was for, and the more likely it is that a document is missing.

2. Keep every voucher and invoice

Auditors ask for the document behind each entry. Create a simple folder structure, by month and type, and store scanned copies of sales invoices, purchase bills, expense receipts and bank statements. Name files consistently so they can be found.

3. Reconcile the bank every month

Compare the bank statement with the cash book and clear any differences. Unexplained items are the first thing an auditor will question.

4. Separate personal and business money

Use the company's account only for company transactions. Founder loans, reimbursements and salary should be properly recorded rather than mixed in with business expenses.

5. Track receivables and payables

Maintain a list of who owes the company money and whom it owes. Review it monthly, chase overdue invoices, and write down balances that will not be recovered according to a consistent policy.

6. Reconcile your GST and TDS data

Match your books with GST returns and the tax portal's records. Check that tax deducted and deposited agrees with what appears in the statements, so mismatches are resolved before the audit and not during it.

7. Maintain a fixed asset register

List each asset with its purchase date, cost, location and depreciation method. Update it when assets are bought or sold, and do a physical check at least once a year.

8. Keep statutory records current

Minutes, registers of members and directors, and filings with the Registrar should be updated as events happen. Auditors may ask to see them along with the accounts.

9. Document decisions and policies

Write down how you value stock, recognise revenue and handle expenses. A short accounting policy note saves time when questions arise.

10. Close the books each month

Even a rough monthly close, with a simple profit and loss and balance sheet, shows errors early. At year end, you will be adjusting a few items, not rebuilding twelve months of data.

A simple monthly checklist

Post all entries
Reconcile bank and credit accounts
Review receivables and payables
Check tax deductions and GST data
Back up the accounting file
Note unusual items for explanation

Closing thought

Software helps, but habits matter more. Rules and thresholds change, so confirm current requirements for your situation.

Greenwolf Advisors helps founders with company registration, accounting and compliance in New Delhi.

Setting Up an Indian Subsidiary as a Foreign Company: A Basic Overview

Greenwolf Advisors — Fri, 30 Oct 2026 04:44:01 +0000

Foreign businesses often start their India journey by incorporating a subsidiary. This post is a short, general overview for founders and finance teams who are still at the planning stage. It is not legal advice, and rules change, so always confirm current requirements.

Choose the entry vehicle

A foreign company can generally enter India in one of a few ways:

A wholly owned subsidiary, usually a private limited company
A joint venture with an Indian partner
A branch, liaison or project office, which are permitted for specific activities and usually need approval from the Reserve Bank of India

Most businesses planning to employ staff, invoice customers and operate long term choose the private limited company, because it is a separate legal entity with limited liability.

Check the foreign investment rules

Foreign direct investment (FDI) is governed by the FDI policy and the Foreign Exchange Management Act (FEMA). Many sectors fall under the automatic route, where no prior government approval is needed, while some need approval, and a few have caps or conditions. Confirm which route applies to your sector before you commit.

Core incorporation requirements

At least two directors, with at least one who has stayed in India for 182 days or more in the previous year
At least two shareholders, which can include the foreign parent and a nominee
A registered office address in India
Digital signature certificates and director identification numbers for directors
Identity, address and apostilled or notarised documents of foreign shareholders and directors, as per the rules
A proposed company name approved by the Registrar of Companies

After incorporation

You will normally obtain PAN and TAN, open a bank account and receive the share capital from abroad through banking channels. FEMA then requires reporting of the inward remittance and of the share allotment to the Reserve Bank within the prescribed time. Skipping these filings is a common source of later penalties.

Ongoing compliance

An Indian subsidiary must appoint an auditor, hold board and general meetings, file annual financial statements and returns with the Registrar, and comply with tax, GST and payroll rules where applicable. Transactions with the foreign parent may also attract transfer pricing documentation, so plan intercompany agreements early.

A final tip

Map out your expected activities, funding route and timelines before incorporation. A short planning exercise usually saves months of rework.

Greenwolf Advisors helps founders with company registration, accounting and compliance in New Delhi.

Private Limited Company Registration in India: A Practical Checklist for Founders

Greenwolf Advisors — Fri, 30 Oct 2026 01:03:28 +0000

Starting a company in India is mostly a sequence of filings. Here is a practical checklist for incorporating a private limited company, in the order most founders meet each step.

1. Before you file

Directors and shareholders: A private limited company needs at least two directors and two shareholders (the same people can hold both roles), and at least one director must be a resident in India.
Digital Signature Certificate (DSC): Proposed directors and subscribers need a Class 3 DSC to sign the e-forms.
Director Identification Number (DIN): This is allotted through the incorporation form for new directors.

2. Name approval and incorporation

Check name availability on the MCA portal and make sure it does not clash with existing companies or trademarks.
File SPICe+ (INC-32), which combines name reservation, incorporation, DIN allotment, PAN, TAN and other registrations in one integrated form.
Prepare the MOA and AOA (Memorandum and Articles of Association), which define the company's objects and internal rules. Attach the proof of registered office address.
On approval you receive the Certificate of Incorporation with the CIN.

3. Registrations after incorporation

PAN and TAN are issued along with incorporation through SPICe+.
GST registration is needed if your turnover crosses the applicable threshold, if you supply goods or services across states, or if you sell through e-commerce platforms. Some businesses register voluntarily.
Bank account: Open a current account in the company's name using the certificate, PAN and board resolution.

4. Early compliance

Auditor appointment: The first auditor must be appointed within 30 days of incorporation (via the board), and then at the AGM.
INC-20A: Declaration of commencement of business, to be filed before starting business and generally within 180 days of incorporation, after shareholders have paid in their subscription money.
Statutory registers and minutes: Keep them from day one.

5. Ongoing annual compliance

Hold the AGM and file AOC-4 (financial statements) and MGT-7/7A (annual return) with the ROC.
File DIR-3 KYC for directors every year.
Keep GST returns, TDS returns and income tax returns on schedule.

Deadlines and thresholds change, so verify them on the official portals or with a qualified professional before filing. If you want help with registration, accounting, tax and compliance in India, Greenwolf Advisors is a New Delhi firm that has worked with founders and businesses since 2016.