Getting your company registered feels like the finish line. It isn’t. It’s the starting line.
A lot of founders think incorporation is the hard part. The certificate arrives, the company exists, and naturally, the focus shifts back to building the business.
But right at this point, something important begins in the background.
The moment your company is incorporated in India, a new set of responsibilities quietly kicks in. These are not about sales or growth, they’re about staying legally active and compliant as a company.
This is what we call post-incorporation compliance.
In simple words, it means all the legal, regulatory, and filing formalities your company needs to complete after registration.
And this is where many founders slip not because it’s complicated, but because no one really explains it clearly at the start.
The good news is that most of these steps are straightforward if you do them in the right order, at the right time.
What You Must Do Immediately After Incorporation
- Open a Current Bank Account in the Company’s Name
This is the first thing to do. Your company is a separate legal entity, it needs its own bank account. All business transactions, client payments, and expenses should flow through this account, not a personal one.
To open the account, banks typically ask for the Certificate of Incorporation, Memorandum and Articles of Association, PAN of the company, board resolution authorizing the account opening, and identity and address proof of directors.
Do this within the first few days of incorporation. Everything else depends on it.
- File INC-20A, Declaration of Commencement of Business
This is one of the most missed compliances, and one of the most important.
Every company that has share capital must file Form INC-20A within 180 days of incorporation. This form is a declaration that the directors have received the subscription money from shareholders, and that the company has opened a bank account.
Without filing INC-20A, the company cannot legally commence business operations or borrow money. If you skip this, the Registrar of Companies can strike off the company. The penalty for non-filing is ₹50,000 on the company and ₹1,000 per day on each director for the period of default.
File this early. Don’t wait for the 180-day deadline to approach.
- Get the Company PAN and TAN
Your company’s PAN (Permanent Account Number) is needed for almost everything, bank accounts, GST registration, filing income tax returns, entering contracts. The TAN (Tax Deduction and Collection Account Number) is required if your company will be deducting TDS from payments made to employees, vendors, or contractors.
Both are applied for during or shortly after incorporation. If they haven’t been issued yet, follow up with your CA or the registrar immediately.
- Register for GST If Applicable
GST registration is mandatory if your business turnover exceev ds ₹40 lakhs for goods or ₹20 lakhs for services in a financial year. For certain states and special category businesses, the threshold is lower.
Even if you’re below the threshold, voluntary GST registration is often a good idea — it allows you to issue GST invoices to clients who need them for their own input tax credit, and it signals that your business is properly set up.
Once registered, GST returns need to be filed monthly or quarterly depending on your turnover and scheme. Missing GST return deadlines attracts late fees and interest.
- Appoint a Statutory Auditor Within 30 Days
Under the Companies Act 2013, every company must appoint its first statutory auditor within 30 days of incorporation. This is done through a board resolution, and the auditor must be a practicing Chartered Accountant or a CA firm.
The auditor holds office until the conclusion of the first Annual General Meeting. At the AGM, a formal appointment is made for the next five years and filed with the Registrar of Companies using Form ADT-1.
This is a hard deadline. Missing the 30-day window puts the company in default.
- Hold the First Board Meeting Within 30 Days
The first board meeting of a newly incorporated company must be held within 30 days of incorporation. In this meeting, the board typically appoints the first auditor, opens the bank account formally, discusses the registered office, and approves any initial business decisions.
After the first meeting, a private limited company must hold at least four board meetings in a year, with no gap of more than 120 days between two consecutive meetings.
Keep proper minutes of every board meeting. These are legal records.
- Maintain Statutory Registers
Every company is required to maintain a set of statutory registers from the date of incorporation. These include the Register of Members, Register of Directors and Key Managerial Personnel, Register of Charges, Register of Loans and Investments, and Register of Contracts.
These registers are not filed with the government regularly, but they must be maintained and updated, and must be available for inspection if required. Auditors and investors will ask for these during due diligence. Not maintaining them is a compliance failure.
- File Annual Returns and Financial Statements with the ROC
Every company, regardless of size or turnover, must file annual returns with the Registrar of Companies every year. The two main filings are Form MGT-7 (Annual Return) and Form AOC-4 (Financial Statements including Balance Sheet and P&L).
These must be filed within 60 days of the Annual General Meeting for MGT-7, and within 30 days for AOC-4. The AGM itself must be held within six months of the end of the financial year, so by September 30 for companies following the April to March financial year.
Late filing attracts additional fees and can result in the company and directors being marked as defaulters.
- File Income Tax Returns
A company must file its income tax return every year, regardless of whether it made a profit or had any income. The due date for companies that require a tax audit is typically October 31 of the assessment year.
Even a newly incorporated company that has done zero business needs to file a return for the period it was in existence during the financial year.
- Comply With TDS Requirements
If your company is paying salaries, professional fees, rent above a threshold, or contractor payments, you are required to deduct TDS at the applicable rate, deposit it with the government by the 7th of the following month, and file quarterly TDS returns.
Failure to deduct or deposit TDS on time attracts interest, penalties, and in some cases, disallowance of the expense in your income tax computation. This is an area where a lot of early-stage companies slip up because it feels like a small detail, until the demand notice arrives.
Frequently Asked Questions
What happens if I don’t file INC-20A on time?
If INC-20A is not filed within 180 days of incorporation, the company cannot legally commence business. The Registrar can also initiate action to strike off the company, and directors face a daily penalty for the period of default.
Is GST registration mandatory for all companies in India?
No. GST registration is mandatory only if your aggregate turnover crosses the prescribed threshold — ₹40 lakhs for goods and ₹20 lakhs for services in most states. However, voluntary registration is advisable for B2B businesses.
What is the penalty for not appointing a statutory auditor within 30 days?
The company and every officer in default can face a penalty under the Companies Act 2013. Beyond the penalty, an unaudited company cannot file financial statements, which creates a chain of compliance failures.
Do I need to file annual returns even if my company has no business activity?
Yes. Every registered company in India must file annual returns and financial statements with the ROC, and income tax returns with the Income Tax Department, regardless of whether any business was conducted during the year.
What is a statutory register and do I need to maintain it?
Yes. Statutory registers are mandatory records that every company must maintain from the date of incorporation. They include registers of members, directors, charges, and contracts, among others. These are required for compliance and are reviewed during audits and investor due diligence.
The Bottom Line
Incorporation is the beginning, not the end. The companies that stay clean on compliance from day one are the ones that don’t face surprises when they’re raising a round, onboarding a large client, or going through an acquisition.
None of this is complicated once you have the right people around you, a good CA, a company secretary if required, and a clear calendar of deadlines. The problems start when compliance is treated as something to deal with later.
Set it up right from the start. It costs far less than fixing it after the fact.
If you’re setting up a company in India, getting compliance right from day one can save you from penalties, delays, and unnecessary stress later. At CFO Services, we help founders and SMEs stay fully compliant with post-incorporation requirements, from ROC filings to GST and TDS. Reach out at cfoservices.in and start with a simple conversation.
