Company IncorporationCompliance

18 Post Incorporation Compliances Companies Should Know About

Establishing a company of your own can be a thrilling and confusing process that offers several rewards. However, there are certain compliance requirements that entrepreneurs need to know about before registering their business. 

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The youth of India seem to be experimenting with entrepreneurship a lot more in recent years. This impetus for creating a legacy of their own through a business empire is a boon to the economy. The Indian government is also supporting such incorporation of companies by making the process easier and more efficient. However, entrepreneurs need to know about what follows the incorporation of their company. But, how exactly does the process of incorporation of a company in India work? This article will look at the process of incorporation of a company and the compliances that follow registration. 

Documents Required for Incorporation of a Company in India

Private limited company incorporation requires at least two shareholders and directors, along with the following documents.

  1. Recent passport-sized photograph
  2. Duly filled application form
  3. ID Card – Aadhar card, passport, voter ID, ration card, PAN card, or driving license 
  4. Bank statements from the last two months
  5. Digital signature certificates of the proposed directors
  6. Director Identification Number
  7. Proof of possession of the place of business – electricity, water, gas or phone bill / rental agreement / NOC from the owner/property registration certificate/property tax receipt

Incorporation of a Company in India: Process Overview

  1. First and foremost, entrepreneurs will have to decide on a name for their business that complies with company naming laws. They will then have to send the name for approval to the Ministry of Corporate Affairs through SPICe+ Form A
  2. Once the MCA approves the proposed name, business owners must duly fill and file SPICe+ Form B. They will also have to upload copies of the supporting documents mentioned above
  3. Next, the entrepreneurs will have to meet with legal experts and start preparing their Memorandum and Articles of Association
  4. Once all the documents required according to the Companies Act, 2013 are ready, entrepreneurs must complete the registration process online. They will also have to pay the necessary processing fees online as per their state’s slab
  5. The MCA officials will then review all your documents and process your application for incorporation. If satisfied, they will grant a certificate of incorporation within seven days.

Once the entrepreneurs receive their registration certificate, they can apply for a company PAN card and TAN. Additionally, business owners can also apply for Employee State Insurance and Provident Fund registration online. The MCA portal also allows entrepreneurs to apply for a GST registration simultaneously for speedy approval.

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Post Incorporation Compliance in India for Companies

Once a startup is incorporated, there are several compliance measures it must follow to ensure smooth operations. Here is a quick look at the compliances that need to be completed right after the incorporation of a company in India.

  1. Intimate address of the registered office to the MCA if address at the time of incorporation is different from the office
  2. Conduct the company’s first board meeting at least within thirty days of incorporation.
  3. Appoint a First Auditor and convey information regarding the same to the MCA via Form ADT 1
  4. Open a bank account within sixty days of incorporation
  5. Issue share certificates within sixty days of incorporation of the company
  6. As per Section 10A, startups, once incorporated, can commence their business only after filing Form INC-20A with the MCA within 180 days of incorporation
  7. Conduct board meetings at regular intervals and prepare, regulate and store details regarding their minutes
  8. If applicable, companies must file Form MSME every six months
  9. Companies registered under ESI, PF, and GST must file their returns on either a monthly or quarterly basis as required. Additionally, companies that have a TAN must deduct and deposit the required TDS amount every month. Such companies have to file their TDS returns on time every quarter as well.

Moving on, here’s a quick look at the compliances that companies need to fulfil on an annual basis.

  1. File MGT-14 with the MCA if the company passes any special resolution 
  2. Use Form DPT-3 to report deposits and advances made by the company
  3. Update and file all KYC details of directors through Form DIR-3
  4. Prepare and submit minutes of board meetings, annual general body meetings and EGMs
  5. Prepare and update statutory registers, including the Members Register, Shareholder’s Register, and Register of Charge
  6. Conduct a statutory audit if applicable as per the Companies Act, 2013
  7. Perform a tax audit if applicable as per the Income Tax Act, 1961
  8. Conduct and report the findings of the GST Audit as per the GST Act, 2017, if necessary
  9. Prepare and file financial statements with the MCA via Form AOC-4 and MGT-7.

Optional Registrations After Incorporation of a Company in India

Here’s a quick look at the various optional registrations that startups, once incorporated, can apply for to expand their business.

  1. Import-export registration to expand the business into foreign markets
  2. MSME registration in case the company is eligible under the MSME Act. This will help the business avail various government benefits, such as loans, subsidies and welfare schemes. The MSME Samadhan Scheme also enables businesses that file a complaint to recover dues from clients
  3. Trademark registration in case the business wants to protect its brand identity and has a unique name or logo as a product differentiator
  4. Startup India registration to avail various tax benefits from the Income-tax department for specified time intervals
  5. FSSAI registration in case the business deals with any food-related product or service.

How Vakilsearch Can Help

As you can see, there are countless compliance measures that startups need to follow after incorporation. The process of company incorporation in itself can seem complicated to someone new to the business world. Hence, it is advisable to consult an expert such as Vakilsearch before incorporating your business to ensure you stay on the right side of the law. Our Accounting, Bookkeeping, & Compliance (ABC) package, ably steered by a team of expert lawyers, chartered accountants, and company secretaries, will help you understand all the legal aspects of running a business so that you always stay compliant. So, what are you waiting for? Partner with us at Vakilsearch and grow the business of your dreams!

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