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CS Executive · December 2025 · Paper 3

CS Executive Setting Up of Business, Industrial and Labour Laws December 2025: paper analysis

Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.

Chapter-wise marks

Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).

What each question tested

In our words, by question number. Open the official paper for the full question.

QMarksTestsChapter
1(a)3Time limit for filing LLP agreement after incorporation and its significanceLimited Liability Partnership
1(b)3Key considerations before setting up a startup and seeking DPIIT recognitionStartups and its Registration
1(c)3Remedy for delayed payments to MSME suppliers through facilitation councilMicro, Small and Medium Enterprises
1(d)3Steps and considerations for setting up an overseas wholly owned subsidiarySetting up of Business outside India and Issues Relating thereto
1(e)3Environmental law compliances applicable to a manufacturing enterpriseIdentifying Laws applicable to various Industries and their Initial Compliances
2(a)3Eligibility criteria for a foreign company to open a branch office in IndiaSetting up of Branch Office, Liaison Office and Wholly Owned Subsidiary by Foreign Company
2(b)3Doctrine of ultra vires: articles cannot extend objects beyond memorandum, ratification issueCorporate Entities - Companies
2(c)3Identifying a co-marketing style collaboration and benefits to each partnerBusiness Collaborations
2(d)3Section 8 company: name without Limited suffix and permissible objectsCorporate Entities - Companies
2(e)3Certification of LLP annual return by practising company secretary based on turnover thresholdsLimited Liability Partnership
3(a)3Documents required for registration of a societyNon-Corporate Entities
3(b)3Importance and objectives of labour lawsConstitution and Labour Laws
3(c)3Conditions for converting a private company into LLP and effect of conversionConversion of Business Entities
3(d)3Industrial licence requirement for defence and explosives manufacture and procedureVarious Initial Registrations and Licenses
3(e)3Chit fund registration requirement and features of a chit schemeFinancial Services Organization
4(a)3Factors relevant in choosing the form of business entitySelection of Business Organization
4(b)3Registration procedure under Shops and Establishments lawVarious Initial Registrations and Licenses
4(c)3Conditions for RBI grant of full payments bank licenceFinancial Services Organization
4(d)3Risks in forming a multidisciplinary professional firmBusiness Collaborations
4(e)3Benefits available to Udyam-registered enterprisesMicro, Small and Medium Enterprises
4A(i)3Distinction between banks and NBFCsFinancial Services Organization
4A(ii)3Distinction between public trust and private trustNon-Corporate Entities
4A(iii)3Distinction between partnership firm and LLPLimited Liability Partnership
4A(iv)3Distinction between entrepreneurship and a startupStartups and its Registration
4A(v)3Distinction between special purpose vehicle and a companyCorporate Entities - Companies
5(a)5Termination on internal committee findings without separate departmental inquirySexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
5(b)5Maternity leave entitlement where the child dies, and adoption-related benefitThe Code on Social Security, 2020
5(c)5Employer obligation to provide first-aid facilities irrespective of headcount thresholdsThe Occupational Safety, Health and Working Conditions Code, 2020
5(d)5Principal employer liability for drinking water facility for contract labourThe Occupational Safety, Health and Working Conditions Code, 2020
6(a)5Government reference to tribunal during pending conciliation and tribunal continuing after time limitThe Industrial Relations Code, 2020
6(b)5Exempted establishments under provident fund law and transfer of accumulations on job changeThe Code on Social Security, 2020
6(c)5Withholding gratuity for non-vacation of quarters and recovery mechanismThe Code on Social Security, 2020
6(d)5No right of apprentice to employment and obligations of employerThe Apprentices Act, 1961
6A(i)5Constitution and role of Local CommitteesSexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
6A(ii)5Specific duties of occupier relating to hazardous processesThe Occupational Safety, Health and Working Conditions Code, 2020
6A(iii)5Matters decided by the Employees Insurance CourtThe Code on Social Security, 2020
6A(iv)5Key definitions including small and very small establishmentThe Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act

What stood out

  • Part I (60 marks) is split into 3-mark parts, giving wide but shallow coverage of entity choice, LLP, startups, MSME, financial services and licensing.
  • Part II (40 marks) concentrated on labour law, with the Code on Social Security, 2020 the most tested labour chapter at 4 entries including the 6A alternative.
  • Questions on labour law still referred to legacy enactments such as the Factories Act and EPF Act in fact situations, so candidates need both legacy and Code provisions.
  • Two case-based blocks (Q1 setting-up scenario and Q5 labour compliance scenario) carried 35 marks combined.
  • The 4A alternative was entirely distinction-type questions, a recurring and scoring pattern for this paper.

Practise the chapters that carried the marks

The Code on Social Security, 2020, The Occupational Safety, Health and Working Conditions Code, 2020, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: study guides and practice questions in the CS Executive format.