Why Startups Must Maintain Proper Shareholding Records

For startups, shareholding records are critical for compliance and transparency.

Importance of Maintaining Shareholding Records:

1. Legal Requirement – ROC filings require accurate shareholding details.
2. Investor Trust – Investors check equity records before funding.
3. Dispute Prevention – Avoids conflicts between co-founders and shareholders.
4. Future Fundraising – Clear ownership records make funding easier.
5. Tax & Compliance – Helps in reporting dividends and capital gains correctly.

👉 Startups that neglect shareholding records face disputes, funding delays, and compliance risks.