Next Steps After Company Registration: Compliance Checklist

The first compliance steps after company registration involve obtaining a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), opening a current bank account, and filing the initial declaration of commencement of business. These steps must be completed within 30 days of incorporation under the Companies Act, 2013.

After receiving the Certificate of Incorporation from the Ministry of Corporate Affairs (MCA), you must apply for PAN and TAN through the Income Tax Department's online portal. The PAN application requires Form 49A, while TAN requires Form 49B. Both can be submitted through the NSDL or UTIITSL websites. Simultaneously, you should open a current bank account in the company's name, which requires the Certificate of Incorporation, Memorandum of Association (MoA), and Articles of Association (AoA).

Additionally, under Section 10A of the Companies Act, 2013, every company must file a declaration of commencement of business within 180 days of incorporation. This is done through Form INC-20A on the MCA portal. Failure to file this form can result in the company being struck off from the register.

You must register for Goods and Services Tax (GST) if your company's aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category states) in a financial year. For companies engaged in inter-state supply or e-commerce operations, GST registration is mandatory regardless of turnover.

The GST registration process is completed online through the GST portal (www.gst.gov.in). You will need the company's PAN, Certificate of Incorporation, MoA, AoA, proof of registered office address, and bank account details. The application is processed through Form GST REG-01, and upon approval, you receive a GST Identification Number (GSTIN) within 7 working days.

Other mandatory registrations include:

• Professional Tax: Applicable in states where it is levied (e.g., Maharashtra, Karnataka, West Bengal). Registration must be completed within 30 days of employing staff.
• Shop and Establishment Act License: Required for all commercial establishments. Apply with the local municipal authority within 30 days of commencement of business.
• Import Export Code (IEC): Mandatory for companies engaged in import/export. Apply through the Directorate General of Foreign Trade (DGFT) portal.

Every company must hold its first board meeting within 30 days of incorporation. Subsequent board meetings must be held at least four times a year, with no gap exceeding 120 days between two consecutive meetings. These meetings require proper notice, agenda, and minutes as per Section 173 of the Companies Act, 2013.

Annual filings with the MCA include:

• Form AOC-4: Filing of annual financial statements (balance sheet, profit and loss account) within 30 days of the Annual General Meeting (AGM).
• Form MGT-7: Filing of annual return within 60 days of the AGM.
• Form MGT-14: Filing of board resolutions for specific matters (e.g., appointment of auditors, alteration of MoA/AoA).

The AGM must be held within 6 months of the financial year-end (i.e., by September 30 for companies following the April-March financial year). For newly incorporated companies, the first AGM must be held within 18 months of incorporation or 9 months from the end of the first financial year, whichever is earlier.

Under Section 139 of the Companies Act, 2013, every company must appoint an auditor within 30 days of incorporation. The first auditor is appointed by the Board of Directors within 30 days of registration. If the Board fails to appoint, the members must do so at an Extraordinary General Meeting (EGM) within 90 days.

The auditor must be a practicing Chartered Accountant (CA) or a firm of CAs. The appointment is formalized through Form ADT-1 filed with the MCA within 15 days of the auditor's appointment. The auditor holds office until the conclusion of the first AGM.

Compliance with accounting standards involves:

• Ind AS (Indian Accounting Standards): Mandatory for listed companies and certain unlisted companies with net worth exceeding ₹250 crore.
• AS (Accounting Standards): Applicable to all other companies. Standards cover revenue recognition, depreciation, inventory valuation, and related party transactions.
• Books of Accounts: Must be maintained on an accrual basis using double-entry bookkeeping. Records must be preserved for 8 years from the end of the relevant financial year.

Penalties for non-compliance vary based on the specific requirement and the company's size. Under the Companies Act, 2013, penalties can range from ₹1,000 per day for late filing of annual returns to ₹5,00,000 for failure to hold board meetings.

Specific penalties include:

• Late filing of Form INC-20A: ₹50,000 for the company and ₹1,000 per day for officers in default.
• Non-appointment of auditor: ₹3,000 per day for the company and ₹1,000 per day for officers, up to ₹5,00,000.
• Failure to hold AGM: ₹1,00,000 for the company and ₹50,000 for officers, with additional ₹5,000 per day for continuing default.
• Non-filing of annual returns (AOC-4/MGT-7): ₹100 per day for each form, with no upper limit.

Under GST law, late filing of returns attracts a penalty of ₹50 per day (₹25 for CGST and ₹25 for SGST). For income tax, late filing of TDS returns attracts a penalty of ₹200 per day under Section 234E. Repeated non-compliance can lead to the company being struck off from the MCA register or prosecution of directors.

Review this checklist against your company's incorporation date and identify any pending compliances. If you are unsure about any requirement or need assistance with filings, consult a qualified company secretary or chartered accountant who can guide you through the process.

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This page provides preliminary information. It is not legal advice. For your matter, consult a qualified professional.