Starting Up in Salt Lake Sector V or New Town: Company, LLP and First-Year Checklist
Most startups in Salt Lake Sector V and New Town should register as a private limited company if they plan to raise equity or give ESOPs, and as an LLP if they will stay founder-funded and want lighter compliance. Either way the company falls under RoC Kolkata-II, not Kolkata-I, because Salt Lake and New Town are in North 24 Parganas. The company and each director pay West Bengal professional tax of ₹2,500 a year. DPIIT recognition is now open to entities up to 10 years old with turnover up to ₹200 crore. This checklist takes a founder from choosing the structure to the first annual filing.
Private limited company or LLP?
| Private limited company | LLP | |
|---|---|---|
| Raising money from angels and VCs | Yes, through shares, CCPS and convertible notes | Rarely; investors do not take LLP stakes |
| ESOPs for employees | Yes | No |
| Income tax on profits | 22% under the concessional regime, about 25.17% with surcharge and cess | 30%, 31.2% with cess (more with surcharge above ₹1 crore) |
| Taking profits out | Dividends, taxed in the shareholder’s hands | Profit share, tax-free in the partner’s hands |
| Audit | Always | Only above ₹40 lakh turnover or ₹25 lakh contribution |
| Annual ROC filings | AOC-4 and MGT-7A, plus board meetings and an AGM | Form 11 and Form 8 |
| DPIIT recognition and the startup tax holiday | Eligible | Eligible |
An LLP can be converted into a company later, but founders who expect a seed round within a year or two usually save money by starting as a company. Compare the two in detail on our LLP vs private limited comparison.
Step 1: the address and the Registrar
- Registrar: Sector V, the rest of Salt Lake (Bidhannagar), New Town and Rajarhat are all in North 24 Parganas, so a company there comes under RoC Kolkata-II. A company on Park Street or Camac Street comes under Kolkata-I. Moving between the two later needs the Regional Director’s approval, so pick the address first. See our guide to the Kolkata-I and Kolkata-II split.
- Coworking desks and virtual offices in Sector V and New Town are fine as a registered office, provided you have the agreement, the owner’s no-objection letter and a recent utility bill for the premises.
- Trade licence: the certificate of enlistment comes from the local authority for the plot. In Sector V that is the township authority, NDITA; in the rest of Salt Lake, Bidhannagar Municipal Corporation; and in New Town, NKDA. Check which one covers your building before you apply.
Step 2: incorporation through SPICe+
A single SPICe+ application on the MCA portal incorporates the company and issues its PAN and TAN. The linked forms also open a bank account and register the company for EPFO and ESIC, and GST if you ask for it. West Bengal is one of the states where professional tax registration and enrolment come through SPICe+ too. An LLP is incorporated through FiLLiP and then files its LLP agreement in Form 3 within 30 days.
Step 3: the first 180 days
| When | What a new company must do |
|---|---|
| Within 30 days | Hold the first board meeting and appoint the first auditor |
| Within 60 days | Issue share certificates to the subscribers |
| Within 180 days | File INC-20A, the declaration of commencement of business, with bank proof that the subscribers paid for their shares. Until it is filed, the company cannot start business or borrow. |
| Every month | Deposit TDS by the 7th and professional tax deducted from salaries by the 21st, and file GST returns if registered |
| Once a year | Pay the ₹2,500 professional tax for the company and for each director by 31 July |
Read our detailed guide to Form INC-20A, and our guide to the new West Bengal professional tax slabs, which took effect on 1 October 2026.
Step 4: DPIIT recognition
DPIIT replaced its 2019 startup definition with a new framework on 4 February 2026. A startup now qualifies if:
- it is a private limited company, LLP, registered partnership firm or multi-state co-operative society;
- it is less than 10 years old, or 20 years for a deep tech startup;
- its turnover has not crossed ₹200 crore in any year, or ₹300 crore for deep tech; and
- it works on a new or improved product, service or process, and was not formed by splitting up or reconstructing an existing business.
Recognition brings self-certification under several labour and environment laws, cheaper patent and trademark filing, and the right to give ESOPs to founders who hold more than 10% of the company. Angel tax is no longer an issue: it was abolished for all investors from the 2024-25 financial year. A recognised company or LLP incorporated before 1 April 2030 can also apply separately for the tax holiday that exempts its profits for any 3 of its first 10 years; see our 80-IAC guide.
Step 5: other registrations
- GST: compulsory once turnover crosses ₹20 lakh for services or ₹40 lakh for goods in West Bengal, and earlier for inter-state sales of goods or if you sell goods through marketplaces. SaaS and IT firms billing foreign clients should file an LUT to export services without paying IGST.
- Udyam registration as an MSME, which protects you on late payments from larger customers.
- Shops and establishments registration with the West Bengal Labour Department once you take an office.
Step 6: the first year-end
- A company incorporated between 1 January and 31 March can close its first financial year on 31 March of the following year, giving a first year of up to 15 months.
- Get the accounts audited and hold the first AGM within nine months of the end of that first financial year.
- File AOC-4 within 30 days of the AGM and MGT-7A within 60 days, and the income tax return by 31 October.
- Director KYC is now due once every three years instead of every year, under the amendment in force from 31 March 2026.
- File DPT-3 by 30 June for loans taken from directors or others, and MSME-1 half-yearly if you owe micro or small suppliers for more than 45 days.
Frequently asked questions
Which RoC handles a company registered in Sector V?
RoC Kolkata-II. Sector V is in North 24 Parganas, and since 16 February 2026 Kolkata-II handles every West Bengal district except Kolkata.
Should a Kolkata startup register as an LLP or a private limited company?
A private limited company if you plan to raise equity or offer ESOPs. An LLP if you will stay founder-funded and want fewer filings and no compulsory audit at small sizes.
Does a startup in West Bengal pay professional tax?
Yes. A company and each of its directors pay a flat ₹2,500 a year, and the company deducts professional tax from employees earning more than ₹20,000 a month.
What is the DPIIT startup turnover limit now?
₹200 crore in any financial year since incorporation, and ₹300 crore for a deep tech startup, under the framework notified on 4 February 2026.
Who issues the trade licence in New Town?
NKDA, the New Town Kolkata Development Authority, issues the certificate of enlistment for businesses in New Town.
Start up with the paperwork done
TAXAJ handles company registration in Kolkata, LLP registration, DPIIT recognition, trade licences and annual ROC filings for startups in Salt Lake and New Town. Talk to our Park Street team at TAXAJ Kolkata.
Last updated 16 October 2026. Sources: DPIIT notification F. No. P-38015/19/2025-STARTUP INDIA dated 4 February 2026; MCA notification S.O. 4850(E) dated 23 October 2025 on the Kolkata Registrars; sections 10A and 12 of the Companies Act, 2013; Companies (Appointment and Qualification of Directors) Amendment Rules, 2025; the West Bengal professional tax schedule in force from 1 October 2026; section 80-IAC of the Income-tax Act. General information only; check the current rules before you file.
