Post-Incorporation Essentials: Your Guide to the Next Steps

Starting a company is an exciting milestone, but the work doesn’t end once the incorporation certificate arrives. In fact, the period immediately after incorporation is one of the most important stages in building a compliant and well-structured business. This is when companies must complete a series of legal, financial, and operational tasks that make the organization fully functional. Having a clear list of post-incorporation requirements helps new companies stay organized, avoid penalties, and build a strong foundation for future growth. 

Immediate Post-Incorporation Activities

Open the Company Bank Account: After incorporation, the company must open a bank account using the Certificate of Incorporation, PAN, KYC documents of directors, and other supporting papers. 

Prepare Company Stationery and Display Requirements: A newly incorporated company should set up its official stationery, which includes a rubber stamp, round seal (if required), and printed letterheads. Additionally, the company must display its full name, registered office address, and Corporate Identity Number at its registered office.

Hold the First Board Meeting: The first Board Meeting must be held within 30 days of incorporation. Key agenda items include confirming incorporation, approving the opening of the bank account, taking note of the registered office, and authorising officers for various filings.

Appointment of the First Auditor: The Board must appoint the first statutory auditor within 30 days of incorporation. After the appointment, Form ADT-1 must be filed with the Registrar of Companies within 15 days.

Allotment of Shares and Issue of Share Certificates: Shares must be allotted to the subscribers, and share certificates should be issued within 60 days of incorporation. Stamp duty must also be paid on these certificates as per the state’s stamp laws.

Filing of Commencement of Business (INC-20A): If applicable, the company must file Form INC-20A within 180 days of incorporation. This requires attaching the bank statement showing receipt of share capital from all subscribers.

Establish Statutory Registers: A company must maintain statutory registers such as the Register of Members, Register of Directors, Register of Share Transfers, and others. These can be maintained physically or electronically.

Ongoing and Annual Compliance Requirements

Maintenance of Minutes and Registers: All companies must maintain minutes of Board Meetings and General Meetings as well as statutory registers. These records should be kept at the registered office.

Holding the Annual General Meeting (AGM): The first AGM must be held within nine months from the end of the financial year. After that, AGMs must be held every year within six months of the financial year’s end, ensuring the gap between two AGMs does not exceed fifteen months.

Filing Annual Returns and Financial Statements: Companies must file:

• Form AOC-4 for financial statements within 30 days of the AGM.
  
• Form MGT-7 for the annual return within 60 days of the AGM.

Director KYC Compliance: Every director must complete an annual KYC update. For first-time KYC, Form DIR-3 KYC is used, followed by a simplified web-based KYC in subsequent years.

MSME, Loan, and Deposit-Related Filings: If the company has outstanding payments to micro or small enterprises, Form MSME-1 may be required. Companies must also file Form DPT-3 annually if they have outstanding loans or amounts that fall under the deposit-related rules.

Statutory Audit and Income Tax Return: A statutory audit must be conducted every financial year. The company must file its Income Tax Return by the prescribed deadline, generally around September for companies requiring audit.

Complying with these post-incorporation requirements ensures smooth functioning and protects the company from penalties or legal complications. Timely compliance builds credibility with banks, investors, and stakeholders. It also makes future audits, funding rounds, and expansion activities far easier. Get in touch with Corporate Leaps to make sure your business in India is fully compliant and your post-incorporation requirements are met duly and in a hassle-free manner.