Get an overview of all the crucial steps and deadlines to ensure smooth and lawful business operations. Understand the post-incorporation compliances today.
Overview of Indian Company Law
The Companies Act, 2013, governs Indian company law. The Companies Act 2013 is a comprehensive law that regulates the incorporation, operation, and winding up of companies in India. The Act is administered by the Ministry of Corporate Affairs (MCA). Let,s see the Post Incorporation Compliances in detail.
Post-Incorporation Compliances for a Private Company in India
Once a private company has been incorporated, it is required to comply with several post-incorporation requirements. These requirements include:
Convening of the first meeting of the Board of Directors
The first meeting of the Board of Directors must be held within 30 days of the date of incorporation of the company.
Appointment of Statutory Auditor
A statutory auditor must be appointed within 30 days of the date of incorporation of the company.
Filing of Form for Commencement of Business
Form INC-20A must be filed with the MCA within 180 days of the date of incorporation of the company to indicate that the company has commenced its business operations.
Disclose Interest of Directors
Directors must disclose their interest in any contract or arrangement with the company.
Issuance of share certificate and payment of stamp duty
Share certificates must be issued to shareholders within 60 days of the date of incorporation of the company or the date of allotment of shares, whichever is later. Stamp duty must be paid on the issue of share certificates. Elevate your business status with our private limited company registration expertise. Customized solutions that cater to your unique needs, ensuring a hassle-free setup and a strong legal structure.
Corporate Stationery
All corporate stationery, such as letterheads, invoices, and receipts, must bear the company’s name, registered office address, CIN, and other mandatory information.
Annual Compliances Under the Act
Private companies are required to comply with a number of annual compliances under the Companies Act 2013. These compliances include holding an annual general meeting, filing annual returns with the MCA, and maintaining books of accounts.
Compliances Under FEMA, RBI/FDI Reporting
Private companies that are involved in foreign exchange transactions or that receive foreign direct investment (FDI) are required to comply with the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued by the Reserve Bank of India (RBI).
Register Official Company Address
Every company is required to have a registered office address. The registered office address is the official address of the company and is used for all communications with the government and the public. The registered office address must be a physical address and cannot be a post box number.
Open Company Bank Account
Every company is required to open a bank account in its own name. The company bank account is used for all financial transactions of the company.
Maintain Books of Accounts
Every company is required to maintain books of accounts. The books of accounts must be true and fair and must reflect the financial position of the company. It is important for private companies to comply with all of the post-incorporation requirements. Failure to comply with these requirements can lead to penalties and other consequences.
Mandatory Post Incorporation Compliances, Their Due Dates & Purpose
Ensuring adherence to mandatory post-incorporation compliances is pivotal for a company to establish a robust legal foundation and operate seamlessly within the regulatory framework, as defined by the Companies Act, 2013. This exploration delves into the primary post-incorporation compliances, delineates their respective deadlines, and elucidates their fundamental purposes. A comprehensive understanding of these critical elements empowers you to proactively handle your company’s requirements and obligations, effectively mitigating potential risks associated with non-compliance. A detailed breakdown of each compliance and its corresponding due dates is provided in the table below.
| Post Incorporation Compliances | Due Dates |
| Organise First Board Meeting | Within 30 days from Incorporation |
| First Auditor Appointment | Within 30 days from Incorporation |
| File INC-22 | Within 30 days from Incorporation |
| Shops & Establishment Registration | Within 30 days from Incorporation |
| Professional Tax Registration | Within 30 days from Incorporation (if applicable) |
| Opening a Bank Account | Within 30 days from Incorporation |
| Collect Entire Subscribed Capital | Within 60 days from Incorporation |
| Issue Share Certificates and Pay Stamp Duty | Within 60 days from Incorporation |
| File INC-20A | Within 180 days from Incorporation |
| GST Registration | No prescribed due date |
| MSME Registration | No prescribed due date |
| Startup India Recognition | No prescribed due date |
| Industry Specific License | No prescribed due date |
| IPR / Trademark Registration | No prescribed due date |
| Disclosing Director’s Interests | No prescribed due date |
FAQs on Post-Incorporation Compliances for a Private Company
What are the requirements after company registration in India?
After the incorporation of a company, the directors must comply with a number of post-incorporation requirements. These requirements include:
- Convening the first meeting of the board of directors
- Appointing a statutory auditor
- Filing Form INC-20A with the MCA to indicate that the company has commenced its business operations
- Disclosing the interest of directors in any contract or arrangement with the company
- Issuing share certificates to shareholders and paying stamp duty on the issue of share certificates
- Using corporate stationery that bears the company's name, registered office address, CIN, and other mandatory information
- Complying with the annual compliances under the Companies Act, 2013
- Complying with the compliances under FEMA, RBI/FDI Reporting, if applicable
What forms to be filed after incorporation of private company?
The following forms are required to be filed after the incorporation of a private company:
- Form INC-20A: This form is required to be filed with the MCA to indicate that the company has commenced its business operations.
- Form AOC-4: This form is required to be filed with the MCA to file the company's annual accounts.
- Form MGT-7: This form is required to be filed with the MCA to file the company's annual return.
What is the next step after incorporation of company?
After the incorporation of a company, the directors should:
- Open a bank account in the company's name
- Obtain a business license, if required
- Hire employees, if required
- Start business operations
What are the compliances of a private limited company?
Private limited companies are required to comply with a number of compliances, including:
- Annual compliances: Private limited companies are required to hold an annual general meeting, file annual returns with the MCA, and maintain books of accounts.
- FEMA, RBI/FDI Reporting compliances: Private limited companies that are involved in foreign exchange transactions or that receive foreign direct investment (FDI) are required to comply with the Foreign Exchange Management Act, 1999 (FEMA) and the regulations issued by the Reserve Bank of India (RBI).
- Other compliances: Private limited companies may also be required to comply with other compliances, such as environmental compliances, labor law compliances, and tax compliance.
Can subscribers to the memorandum of association transfer his shares?
Yes, subscribers to the memorandum of association can transfer their shares. However, there are some restrictions on the transfer of shares, such as the requirement to obtain the consent of the board of directors in certain cases.
What is the penalty for failure to complete the post incorporation compliances?
Failure to comply with the post-incorporation requirements can lead to penalties and other consequences. The penalties may vary depending on the nature of the non-compliance. For example, the MCA may impose a fine on the company or its directors for failure to file annual returns.
What if the board of directors fails to appoint the statutory auditors within 30 days of incorporation?
If the board of directors fails to appoint the statutory auditors within 30 days of incorporation, the Registrar of Companies (ROC) may appoint a statutory auditor on behalf of the company.
What are the different ways of introducing funds in the company?
There are a number of ways to introduce funds in a company, including:
- Issue of shares: The company can issue shares to raise funds from investors.
- Borrowings: The company can borrow money from banks or other financial institutions.
- Sale of assets: The company can sell its assets to raise funds.
- Retained earnings: The company can retain its earnings and reinvest them in the business.
What are the compliance required for private limited companies?
Private limited companies must comply with various regulations, including filing annual returns, maintaining statutory records, holding annual general meetings, appointing auditors, and adhering to taxation laws. Directors must avoid conflicts of interest, act in the company's best interests, and disclose any personal interests in transactions with the company.
What are post incorporation compliances?
After incorporation, post-incorporation compliances specifically denote the array of legal responsibilities a company needs to fulfill subsequent to its establishment or incorporation.
What is post incorporation?
The profit gained after acquiring a business is referred to as 'Post-incorporation or Post-acquisition profit,' while the profit earned before the acquisition date is known as 'Pre-incorporation profit.'
What are the post incorporation compliances of a producer company?
After registration, the Producer Company must have a registered office, whose name must be submitted to the Ministry of Corporate Affairs (MCA). This office can be located in a corporate or residential space, either rented or owned by the company.
What is post compliance after name change of company?
Modify the name of each document, like the Memorandum of Association. Update all printed materials, including letterheads, bills, and documents, with the new name. Display the new name within the office premises. Ensure bank accounts and licenses are updated to reflect the new name.
