Private Limited Company post Incorporation compliances

Post Incorporation Compliances and Tasks

Many entrepreneurs think that incorporating a Private Limited Company is the only prime task that needs to be done in order to start a company.

Once the company is incorporated, they get busy with other business activities such as business development, team building, product development, etc.

But in reality, Company Incorporation is only the first and foremost step of starting a business. There are various tasks and compliances that are required to be completed as a part of post Incorporation compliances.

Thinks of your company as it is your own child. Your company is born as a Legal artificial person with certain features such as legal rights, Power to sue, and liabilities.

You, as a Director or Shareholder of your company, are the parents. You will be responsible for the compliances and activities of your company. and as a parent, you need to fulfill your duties of compliances.

Obtaining the incorporation certificate is only the first step in the process of setting up a company. There are few Post incorporation tasks and Compliances that need to be completed.

All the listed below compliances needs to be completed within a specific time period defined in the Companies Act 2013.

List of Post Incorporation Compliances for a Private Limited Company

  1. First Board Meeting – Within 30 Days

    As per the companies act 2013, the company shall hold a meeting of the board of directors within 30 days from the date of incorporation. The directors can attend the board meeting in person or through video conferencing.

    In this board meeting, directors shall discuss the post-incorporation compliances and tasks such as opening a bank account, Appointment of auditor, etc.

  2. Filing Verification of Registered Office – Within 30 Days

    In case the registered office details are not mentioned during the incorporation of the company then, the details of the permanent or registered office of the company are now to be filed with MCA within 30 days of the incorporation of the company. This filing is to inform the Ministry of Corporate Affairs regarding the registered office of the company. Form INC 22 needs to be filed for the same.

    The following documents will be required for filing verification of registered office address

    • NOC from the owner of the property
    • Lease deed/Sale deed
    • Utility bill of the property (not older than 2 months)
      • Electricity bill/Water bill/Gas bill
  3. Opening a Current Bank Account – Within 30 Days

    Every private limited company must open a current bank account in a bank whose details have been given at the time of incorporation of the company. This bank account should be in the name of the company. We advise you not to make any transactions until you complete Task 6.

    Opening a bank account isn’t mandatory to do so within 30 days of the incorporation but to complete Task 6. We recommend you get it done with 30 days.

  4. Appointment of Auditor – Within 30 Days

    Every private limited company is required to appoint its first auditor within 30 days of the date of company incorporation.

    The appointment of such an Auditor is to be informed to the Ministry of Corporate Affairs (MCA) by filing e- form ADT-1 within 15 days from the date of passing the resolution for the appointment of the first auditor.

  5. Professional Tax Registration – Within 30 Days

    Every Private limited company must take Professional tax registration (Employer Enrollment Certificate) within 30 days of the incorporation. And Professional Tax Registration (Employee registration certificate) within 30 days from the day of first employee onboarding.

    Professional Tax is a state-specific registration, some of the Indian states do not have professional tax to know if you need the PT registration or not read: Professional Tax Registration.

  6. Issue of Share certificate – Within 60 Days

    A company must issue share certificates to the shareholders within 60 days of incorporation. This process can only be completed only after the shareholders transfer the subscription amount to the company’s bank account from their respective bank account.
    Hence in order to issue share certificates to shareholders, completion of Task 3 is necessary.

  7. Declaration of Commencement of Business – Within 180 Days

    In order to start business operations of the company, the company must obtain a Commencement of Business Certificate within a period of 180 days from the date of incorporation. This certificate can be obtained by filing an e-Form INC20A.

    Once the commencement of business is completed, the company can start its business operations.

  8. Books of Accounts

    It is mandatory for every company to maintain a proper book of accounts that represents an accurate and fair view of the state of affairs of the company. the accounting shall be done on an actual basis by following the double-entry system with an audit trail.

    From Task 1 to Task 8 are the mandatory post incorporation compliances for a private limited company, However, there are certain compliances/registration/licenses which are required depending on the nature and scale of the business.

Specific Need-Based Post Incorporation Compliances

The below-mentioned list of compliances is the most common compliances. Specific need-based compliances/registrations/licenses are completely depending on the nature and scale of the business.

  1. Shops and Establishment Registration

    Companies who have a physical office/warehouse/shop are required to obtain Shops and Establishment Registration under the respective State Shops and Establishment Act. Within 30 days of the set-up of physical office/warehouse/shop.

  2. Goods and Service Tax Registration (GST)

    Every business whose annual turnover exceeds 20 Lakhs shall obtain GST Registration. However, for online business (irrespective of annual turnover) it is mandatory to obtain the GST registration right after completion of commencement business compliance.

    It is not mandatory to obtain GST registration for every business, a company can obtain it as and when required. However, it is advised to obtain the GST Registration as it has various benefits. To know more read – Benefits of GST registration.

  3. MSME Registration

    Micro Small Medium Enterprise popularly known as MSME registration is taken by micro, small and medium companies, it is not mandatory to obtain MSME Registration, However, registration under MSME has various benefits. To know more read - Benefits of MSME Registration.

  4. Trademark Registration

    If your goal is to build a brand through your business or company it is advised to get your brand name and logo registered as a Trademark. It gives legal protection to your brand name or logo.

    Registering a company with a brand name isn’t enough, it does not provide complete protection, but getting a trademark registration does. For more details read – Trademark Registration.

This is the list of post incorporation compliances that needs to be completed within 180 days of the private limited company Incorporation.

However, if you intend to know the complete list of compliances applicable for a Private Limited company in a financial year under Accounting, Taxation, Secretarial, and other compliances read - Start-ups in India and Mandatory Compliances.

If you need any help with filing or completing any of the above tasks, feel free to write to us at info@bbnc.in.

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