Post Incorporation Compliances For Private Limited Company Mandatory and time bound in nature

Once a company is registered, there are some mandatory compliances to be followed. This is vital to avoid any penalty or punishment. The Compliance action includes holding a meeting of the board of directors, having a bank account, registered office address, the appointment of an auditor within 1 month, etc. Also, statutory registers & proper books of accounts should be maintained and share certificates to be issued to a shareholder. Within 6 months, a company needs to obtain a certificate of commencement of business.

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Companies Act Related Post Incorporation Compliances

Over the years, the process of incorporating a company has been made simpler, which encourages full compliance by the companies. The management should be fully aware of the post-incorporation compliance to avoid any penalties or punishments.  Once a company is registered, there are some mandatory compliances to be followed thats called Post Incorporation Compliances:

  1. Bank Account opening 
  2. Intimation of Registered Address to ROC
  3. INC20A, Declaration for commencement of business filing 
  4. First Auditor Appointment
  5. share certificate issuance and franking  

Above Compliances are time bound and non filing of compliances on time may attract heavy penalties.

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Initial Companies Act Compliance for Companies

What is important ?

Post Incorporation Compliances Package

6,599/-
  • First Auditor Appointment
  • ADT-1 Filing
  • Share Certificate issuance and Franking
  • Certificate of commencement of Business

Note- 

  1. A company can not commence its business without filing the declaration to commence its business, to file this declaration, first open a company bank account, deposit the capital from shareholders & until then no activity should be undertaken.
  2. All the compliance mentioned in this section is mandatory in nature, any non compliance and delay will result in heavy penalty and file of approx 2 Lakhs.
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List of Post Incorporation Compliance as per company act

Issue of the certificate of incorporation is the beginning of the corporate journey of your startup. As a company is a well-regulated form of business and is governed by the provisions of the Companies Act, 2013 it has to do a few initial compliances by a Company Secretary, that is mandatory and time-bound. The mandatory compliances post incorporation of companies are as follows:

A) Intimation of Registered Address to ROC:

Nowadays a company may be incorporated on a Communication Address also. In other words, if you have not intimated the registered address , do it within 15 days of incorporation by filing a Form INC -22.

The registered office address of the company is the principal address of the company in the public records maintained by the government. In India, the registrar of companies (ROC) maintains the register of the company and its registered address. where all the letters, notices, and other correspondence by the government departments, banks, investors, and the public are sent.

Earlier it was mandatory for the promoters of a company to declare the company’s registered office at the time of Registration of the company. However, with a recent amendment having effect from 27th July 2018 in section 12 of the Companies Act, 2013.

A new company may be incorporated with a registered address or on a postal address. However, every company which was registered on a communication address must verify its registered office address within 15 days of the registration of the company. For this purpose, the company has to file Form INC-22 before the ROC for verification of its registered office along with evidence of the registered address of the company.

B) First Auditor Appointment (ADT-1 Filing):

Upon receiving the certificate of incorporation the first thing a business has to do is appoint the first auditor of the company. This has to be done within 30 days from registering the company during the Board Meeting. The Auditor can hold the post until the end of the first Annual General Meeting. If the company fails to appoint the auditor, then the Board of Director should call for an Extraordinary Meeting by informing the members of the Board within 90 days.

C) Share Certificate Issuance & Franking:

As per Section 53 of the Companies Act, 2013 the share certificates issued must be delivered to the subscribers of memorandum within two months from the date of incorporation. If the shareholders surrender their allotted letters, the company should send share certificate to those members by registered post. The subscriber has to remit the agreed subscription amount within 60 days from the date of incorporation.

D) Commencement of Business (INC20A Filing):

A company can commence its business/operations only after it files a declaration in Form No INC-20A declaring its registered address and with a Bank Statement Showing deposit of capital by the shareholders. The INC 20A must be filed within 180 days of the Incorporation of the Company. Before the declaration in Form, INC-20A is filed by the company, the entire subscribed share capital as shown in the MOA of the company must be deposited in the bank account of the newly registered company.

Only after approval of the INC-20A a company can commence its business activity, what so ever. The maximum time prescribed for filing of INC-20A is 180 days from the date of incorporation of the company. Non-compliance has very serious effects on the company and it may be punishable with a fine of Rs. 50,000 and every officer in default is punishable with a fine of Rs. 1000/- per day for each day of default, however, the maximum punishment cannot be more than Rs. 1,00,000/- The company shall be closed if the declaration for Commencement of Business is not Filed.

Tax & Local Registrations Based on the Registered Address of the Company

GST Registration is one of the most basic registration for a business. Without GST Registration you may not be able to supply goods or service beyond your state. Discuss our Team to apply for GST Registration 

TheMSME Enterprises are the beneficiaries of several government schemes and concessions, as every startup generally qualifies to be an MSME, It is strongly recommended to register as MSME 

Shop and Establishment registration is Mandatory Registration for every Business. It is mandatory for every business to get Shop act Certificate within 30 days of incorporation to avoid penalty and late fee

For import or export out of India, the IEC is necessary which is a PAN Based registration of the company with the DGFT. We can get you the IEC within the same day.

Except for northern India, the Professional Tax is applicable in most of the states, a company need to register with PT Office and pay the professional tax within 30 Days. 

There are several other Registrations or Licenses which your company may require based on the business activities, such as Trade License, FSSAI Registration or License | Drug License | PSARA.

Frequently Asked Questions

The form ADT-1 is the prescribed e-form through which a company has to file an intimation to the ROC about appointment of the auditor with prescribed fee. The filing of ADT-1 is mandatory if the auditor is appointed by the General Meeting, however in case the appointment is through board of directors meeting the filing of ADT-1 is not necessary.

The form ADT-1 has to be filed within 15 Days of the appointment of the auditor.

Yes, the general fee as prescribed under the rules are also applicable for filing the form ADT-1 and the fee is based on the authorised capital of the company. Govt fee vary from Rs 300 to Rs 600.

Yes, you have the option of filing the intimation of auditor appointment in form ADT-1 even if the due date is missed, however with an additional fee to be paid based on the delay of the number of days from the due date.

For any contravention of the provisions of section 139 to 146 there is severe punishment prescribed in section 147 of the Companies Act, 2013 which is as under

  1. The company is liable to minimum penalty of Rs. 25,000, which may extend to Rs. 5,00,000
  2. Every officer of the company is liable to punishment in the form of imprisonment for a term of up to one year and a fine ranging from Rs. 10,000 to Rs. 1,00,000/- or with both
  3. In case an auditor has contravened any provision then he is liable to punishment which shall be minimum of Rs. 25,000 and may go upto Rs. 5,00,000. However in case of any wilful contravention the punishment may include imprisonment of two years.

An auditor is appointed to do audit of the financial statements of a company on completion of the same the auditor has to issue an Audit Report expressing his independent opinion on the financial statements prepared by the company, whether or not it reflects true and fair view of the books of account and affairs of the company. The appointment of the auditor has to be done to meet the compliance requirements as prescribed under section 139 to 148.

Franking of the share certificate is one among several methods by way of which the stamp duty is paid on the share certificate, and these are impressions made on the share certificate by using a Franking Machine, which is usually installed in the office of the sub-registrar or collector of stamp office of the respective stamp. Typically these machines can affix impressions of up to Rs. 999 on stamp paper.