Business documents in India

Companies are incorporated online through SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) on the MCA portal. Part A reserves the name; Part B handles incorporation itself and, in the same application, allots the Director Identification Number, PAN and TAN, and triggers EPFO and ESIC registration. The linked AGILE-PRO-S form collects details for GSTIN, EPFO, ESIC, professional tax (mandatory for new companies in Maharashtra and Karnataka) and the company bank account, while the memorandum and articles are filed as linked e-MoA and e-AoA forms. A declaration by the subscribers and first directors, form INC-9, is generated as a PDF for signing.

Besides the private limited company, founders choose the One Person Company (OPC), the Limited Liability Partnership under the LLP Act, 2008, or a public company; proprietorships and partnership firms have no MCA registration and rely on PAN, GST and state shop licences. After incorporation, a company with share capital files INC-20A within 180 days, and every company files financial statements (AOC-4) and an annual return (MGT-7, or MGT-7A for small companies and OPCs) each year. Banks and auditors routinely ask for certified board resolutions.

GST is a dual tax: a supply within one state carries Central GST (CGST) plus State GST (SGST, or UTGST) split equally, while inter-state supplies, imports and SEZ supplies carry Integrated GST (IGST). Since 22 September 2025, following the 56th GST Council meeting, most goods and services fall into a 5% or 18% rate, with 40% for a defined list such as aerated drinks and certain motor vehicles. Registration is compulsory above the turnover threshold in section 22 of the CGST Act, and registrations are state-wise — the invoice must show the GSTIN of the state the supply is made from.

Rule 46 of the CGST Rules, 2017 lists the particulars of a tax invoice. Composition taxpayers and suppliers of exempt goods or services issue a bill of supply under Rule 49 instead, which must not charge GST.

Under Notification No. 10/2023-Central Tax, any registered person whose aggregate turnover in any financial year from 2017-18 onwards has exceeded ₹5 crore must report B2B invoices, export invoices and related credit and debit notes to an Invoice Registration Portal (IRP) such as einvoice1.gst.gov.in. The IRP validates the data and returns a 64-character Invoice Reference Number (IRN) and a signed QR code, which must appear on the invoice given to the buyer. An invoice that should have been reported but was not is not treated as a valid tax invoice, and the buyer’s input tax credit is put at risk.

From 1 April 2025, taxpayers with aggregate turnover of ₹10 crore or more must report each invoice to the IRP within 30 days of its date; the IRP rejects later uploads. Businesses that cross ₹5 crore once stay in the system even if turnover later falls, and those exempt from e-invoicing (such as banks, insurers and SEZ units) must print a declaration on their invoices instead.

Most B2B deals run from a quotation or estimate to the buyer’s purchase order and, where an advance is needed, a proforma invoice — which has no GST effect and should say it is not a tax invoice. When an advance is actually received for services, Rule 50 calls for a receipt voucher (and Rule 51 a refund voucher if it is returned); under reverse charge, the recipient issues a payment voucher under Rule 52.

Goods moved without a sale, such as job work or stock transfers, travel under a delivery challan prepared in triplicate under Rule 55, with an e-way bill where the e-way bill rules require one. Returns, price reductions and post-sale discounts are corrected with a credit note under section 34 of the CGST Act, and undercharging with a debit note, both referencing the original invoice. Since 1 November 2026, when the Finance Act, 2026 amendments recommended by the 56th GST Council took effect, post-sale discounts need not be agreed before the sale, but must go through a credit note with the recipient reversing the related input tax credit.

The four labour codes — on Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions — came into force on 21 November 2025, consolidating 29 older central laws. Among the most visible changes for paperwork, employers must now issue an appointment letter to every worker. The Code on Wages also introduced a uniform definition of wages in which allowances excluded from basic pay, dearness allowance and retaining allowance cannot exceed 50% of total remuneration; anything above that is added back, which changes how salary structures, provident fund and gratuity are calculated. Some provisions and state rules are still being phased in, so check the Ministry of Labour and Employment and your state labour department before finalising templates.

A typical employee file holds an offer letter, the appointment letter or contract, monthly payslips showing provident fund, ESI, professional tax and income tax deductions, and on exit a relieving letter and an experience letter. The exit letters are not statutory, but background verification firms and new employers routinely ask for both.

Statutory registrations follow headcount. The provident fund administered by EPFO generally applies to establishments employing 20 or more persons, and each member has a Universal Account Number (UAN). ESIC coverage generally applies to establishments with 10 or more employees for employees whose wages fall within the ceiling notified by ESIC. Companies incorporated through SPICe+ receive EPFO and ESIC registration as part of incorporation, even before they cross these headcounts.

Commercial contracts in India are governed by the Indian Contract Act, 1872, but whether a signed agreement is fully enforceable often depends on stamp duty. The Indian Stamp Act, 1899 and each state’s own stamp legislation set duty on instruments such as agreements, leases, partnership deeds and powers of attorney, and the rate depends on the state where the document is executed. An unstamped or under-stamped agreement can be impounded and may not be admitted as evidence until the duty and any penalty are paid.

Many states sell duty through e-stamping, with Stock Holding Corporation of India (SHCIL) as the central record-keeping agency, so physical stamp paper is rarely needed for NDAs and service agreements.

Electronic signatures — Aadhaar eSign and Class 3 digital signature certificates issued by licensed certifying authorities — are legally recognised under the Information Technology Act, 2000. The exceptions are the documents listed in the First Schedule of that Act, including negotiable instruments other than cheques, powers of attorney, trusts, wills and contracts for the sale or conveyance of immovable property, which still need wet-ink execution. Notarisation is not required for ordinary commercial contracts but is common for affidavits and documents to be used abroad.

Before importing or exporting, a business needs an Importer-Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT), which is linked to its PAN. Customs declarations are filed electronically on ICEGATE, the Indian Customs portal: importers file a Bill of Entry and exporters a Shipping Bill, each supported by a commercial invoice, packing list, transport document and any licences or certificates the goods require.

Export invoices must carry the Rule 46 endorsement indicating whether the supply is made on payment of IGST or under a bond or Letter of Undertaking (LUT) without payment of IGST, along with the buyer’s name, delivery address and country of destination. Exporters who file an LUT on the GST portal can export without paying IGST and avoid tying up working capital in refunds.

Preferential certificates of origin, needed to claim reduced duty under India’s trade agreements, are applied for through the DGFT e-certificate of origin platform, while non-preferential certificates are typically issued by authorised chambers of commerce and export promotion councils. Consistency matters: the description, HS code, quantity and value must match across the commercial invoice, packing list, Shipping Bill and certificate of origin, or the consignment may be held at destination.

Section 35 of the CGST Act requires registered persons to keep accounts of production, stock, supplies, input tax credit and tax paid at their principal place of business, and section 36 requires those records to be kept for 72 months from the due date of the annual return for the year concerned — longer if an appeal or proceeding is pending. Electronic records are acceptable if they are backed up and can be produced on demand.

Under section 128 of the Companies Act, 2013, companies must keep books of account and supporting vouchers for at least eight financial years. Board minutes, registers of members and statutory registers are kept at the registered office or another place approved by the board.

There is no single official language requirement for commercial documents: English is the norm for invoices and contracts across the country, and many businesses add Hindi or the state language for local customers. Domestic invoices are in rupees; export invoices may be raised in foreign currency, but GST values are reported in rupees using the applicable exchange rate.