List of Post Incorporation Compliances for Private Limited Companies
While you may be excited to start your business after getting obtaining your private limited company registration, the story of compliances does not end here. There are certain post incorporation compliances that you need to take care of. In this guide, we have covered the post incorporation compliances for private limited companies.
List of Post Incorporation Compliances
Here’s the list of all the necessary compliances that you should ensure after getting registration of your private limited company in India:
- Certificate of Commencement of Business (Form INC-20A): After the company is incorporated, it shall file a declaration of the commencement of business with the registrar in Form INC-20A. It shall be filed within 180 days of the incorporation of the company.
- Opening of Bank Account in the name of Company: The company shall open a separate bank account for conducting all its financial transactions. The company can open the bank account while making the application for incorporation of the company in Form SPICe+.
- Maintenance of Proper Books of Accounts: As per section 128 of the Companies Act, 2013, each company shall prepare and maintain proper books of accounts and other relevant books and papers which shall be preserved for at least 8 financial years. The books of accounts shall be maintained at the registered office of the company.
Maintenance of Statutory Registers: The companies are required to maintain certain statutory registers including but not limited to the following:Register of Members
- Register of Debenture Holders
- Register of Deposits
- Register of Charges
- Register of Directors and Key Managerial Personnel etc.
- Appointment of First Auditors of the Company: As per Section 139(6), the first auditor of the company shall be appointed by the board of directors within 30 days after the date of registration of the company. In case the board of directors fails to appoint the auditors, it shall inform the members of such failure. The members shall then appoint the first auditors within 90 days at an extraordinary general meeting who shall hold office till the conclusion of the first AGM.
- Professional Tax Registration: The companies shall be required to obtain Professional Tax registration within the state in which it is located. In most states, the time limit for obtaining the registration is 30 days after the commencement of the work.
- Registration under Shop and Establishment Act: Every business including the company shall be required to get registered under the Shop and Establishment Act of the state where the company is operating within 30 days after the incorporation of the company.
- Capital Contribution by the Subscribers to the Memorandum: The subscribers to the memorandum shall contribute the amount of share capital as undertaken to be contributed by them within 60 days of the incorporation of the company.
- Issue of Share Certificates to the Shareholders After Incorporation: The company shall issue the share certificates to the shareholders within 2 months of incorporation of the company.
- GST Registration: The company shall obtain registration under the GST act. The company can either opt for voluntary registration at its own discretion. However, if the GST registration becomes mandatory for the company, then it shall apply for registration within 30 days from the date on which the liability to register under GST arises.
- Registration of Intellectual Property Rights: If the company is holding any intellectual property rights, then it shall apply for the registration of the same, whether it’s trademark, patents or copyrights. Protection of intellectual properties is important to avoid illicit use of it by others.
- Startup India Registration: If the company fulfills the eligibility criteria for startups, then it can proceed to apply for the Startup India Registration scheme of the Government of India. Getting registered under the Startup India Scheme of the government provides multiple benefits to the budding startups including tax holidays, relaxation of criteria in various government tenders, assistance and support etc.
- Other Sectoral Specific Registrations: Apart from the Companies Act, 2013, multiple laws become applicable to the company depending upon the industry in which the company is operating. Therefore, the company shall obtain registration under the respective sectoral regulators.
If you have recently registered your private limited company, then it’s important to take note of the above compliances. Non-compliance of the above can attract penal consequences. You can take the assistance of your eAuditors for all your private limited company compliance needs!
Author : Dipen
Date : 12-Jul-2022