Post-Incorporation Compliances Every New Business Should Adhere To
Starting a company is exciting, but once it’s established and functioning, it has to carefully adhere to the
law. This is due to the possibility that non-compliance can lead to fines, harm to one’s reputation, and
ultimately reduce operational efficiency new business.
In India, regulations such as the Companies Act, 2013 regulate these
compliances, and businesses must go by guidelines released by departments such as the Ministry of Corporate
Affairs (MCA), the Income Tax Department, and others.
Below is a detailed analysis of the post-incorporation compliances that are essential for Indian businesses:
1. Certificate of incorporation
- 1.1 What’s that?
This certificate, given by the Registrar of Companies (ROC), certifies the existence of your business. - 1.2 Why does that matter to new business?
It is essentially a legal document attesting to your company’s existence, and most other legal
procedures, such as opening a bank account or, for example, signing a contract, require it.
2. Registration under TAN and PAN:
- 2.1 A Permanent Account Number PAN: All companies are assigned PANs by the Income Tax
Department, which they new business utilize for all financial transactions and income tax returns filing. - 2.2 Tax Deduction Account Number: To be in compliance with tax rules, you need to have
your TAN if your business collects taxes at source (TDS).
3. Establishing a bank account
- 3.1 Objective: To initiate a current account in the name of the company, you must
obtain the Certificate of Incorporation, PAN, and other required documents. - 3.2 Compliance: Because of this account’s compliance, which new business makes accounting and
auditing easier, all financial transactions are thereafter completed through it.
4. Registered Office Address
- 4.1 Requirement: Within 30 days of incorporation, you must notify the ROC of your
company’s registered office address. - 4.2 Why this matters? All legal notices and communications of significance are directed
to this official address.
5. Share Certificate Issuance
Ensure that within two months of incorporation, share certificates are sent to the shareholders. If you keep
your allotment records up to date in the statutory register, you will continue to be in compliance with the
law.
6. Statutory Registers
Corporations are required by the Companies Act to maintain the new business statutory registers, which consist of the
Register of Directors, the Register of Members, and additional documents. Processes for regulatory audits
and inspections depend on these records.
7. Appointment of Auditor
Within thirty days after incorporation, the statutory auditor must be appointed to comply with
Section 139 of the Companies Act, 2013. The statutory auditor is expected to verify that the
financial statements of the new business organization comply with accounting rules. Within 15 days following the
auditor’s appointment, the corporation must additionally send Form ADT-1 to the RoC.
8. Board Meetings
At least four board meetings must be held in a given year, with the first meeting new business taking place no later than
thirty days after the date of incorporation. Every meeting must have appropriate minutes produced and kept
on file in order to comply with the law.
9. Annual General Meeting (AGM)
Within nine months of the company’s financial year’s end, the first AGM must new businesstake place. The company’s
financial results are given to shareholders at the AGM, after which they can new business discuss the business, ask
questions, and even offer feedback. In general, this will be essential for upholding transparency and
involving investors in the growth and long-term direction of the business.
10. Filing Annual Returns and Financial Statements
- 10.1 Annual Return: Every company must submit its annual return to the ROC no later
than sixty days following the Annual General Meeting. - 10.2 Financial Statements: Balance sheets and profit and loss statements must be filed
in addition to annual returns. - 10.3 Penalties: Failure to comply with these filing obligations may result in severe
penalties and complicated legal matters.
11. GST Registration
You will have to register
for GST if your company’s turnover exceeds the threshold established by the Goods and Services Tax
legislation. Additionally, timely filing of your GST returns spares you from paying a penalty.
12. Tax Compliances
- 12.1 Direct Taxes: Make sure you pay your advance taxes if necessary and file your
income tax returns (ITRs) on time. - 12.2 Indirect taxes: If you are registered, you must pay and file your GST returns on
time.
13. ESI, PF, and Other Labor Law Compliances
If your business employs ten or more people, you must abide by all Provident Fund (PF) and Employee State
Insurance (ESI) rules and regulations. For full compliance, your company new business must be registered with the labor
department and maintain the legally required records of the benefits that your employees will receive.
14. Shops and Establishment Act Registration
Businesses must register under the Shops and Establishments Act of their state, ensuring compliance with
labor laws concerning working hours, conditions, and benefits.
15. Intellectual Property Protection
To protect your company’s new business unique slogan, logo or brand name, you need to file a
trademark application. By registering your trademark in a timely manner, you protect your
intellectual property and prevent others from using it unauthorized.
16. How Plutus Can Simplify Your Company’s Post-Incorporation Compliances?
We take care of statutory auditor appointments, tax filings, labor law compliance, trademark protection, and
timely board meetings so you can focus on expanding your company and maintaining compliance.
17. Conclusion
The foundation for the company’s legal standing and overall well-being is its post-incorporation compliances.
By enabling a smooth new business transition into success, these regulations protect a business from facing legal
consequences while maintaining oversight and transparency. Maintain track of your compliance status on a
regular basis to remain on top of things and make sure your company survives this competitive environment.
To know more about our services, visit our website.
https://plutusco.com/