Post Incorporation Compliance: What Founders Must Not Ignore

Introduction

The Process for Incorporating a company is really a big task. Incorporating a company is just a beginning. There are a lot of procedures to be followed for incorporating a company. Once it has been

Once you've received your Certificate of Incorporation, the real work begins. Many founders believe that registering the company is the final step, but in reality, it's just the starting line. Post-incorporation compliance is crucial to keep your company in good legal standing and avoid penalties.

Failure to comply with mandatory filings can lead to fines, director disqualification, or even the striking off of the company name by the Registrar of Companies (ROC). This guide covers the essential post-incorporation steps every founder must take.

Immediate Steps After Incorporation

• First Board Meeting: Must be held within 30 days of incorporation.
• Bank Account Opening: Open a current account in the company's name.
• Auditor Appointment: Appoint the first auditor within 30 days.
• Registered Office: Verify registered office with passing of INC-22 if not done during incorporation.

Ongoing Mandatory Compliances

1. Commencement of Business (Form INC-20A)

Every company incorporated after November 2018 having share capital must file Form INC-20A within 180 days. This certifies that the shareholders have paid the subscription money.

2. Annual General Meeting (AGM)

Every company must hold an AGM every year. For the first AGM, it should be held within 9 months from the closing of the first financial year.

3. Annual Returns (Form MGT-7 & AOC-4)

Companies must file their financial statements (AOC-4) and annual returns (MGT-7) with the ROC within 30 days and 60 days of the AGM, respectively.

4. Income Tax Filing

Income Tax Returns (ITR) must be filed annually, regardless of profit or loss, usually by September 30th or October 31st depending on audit applicability.