13 Must Do Post Incorporation Compliance for your Startup [Infographic]

Startupwala Team
October 4, 2017
Managing Boring Stuff

Every company starts with a mission to make the world a better place. To make this journey a joyful experience timely ROC compliances are the must.

This Infographic guide has everything you need to know about post incorporation compliances (Step-by-step).

AMC for ROC Compliance

@ Rs.999

(Per Month)
(EMI Option Available)

Free

Share Certificate Book + Minutes Book
+ Statutory Register + Online Accounting Software
worth Rs. 9000 with your AMC

#1 Opening a Company Bank Account

  • Documents Required
    • Company PAN Card
    • Board Resolution for opening and operating company bank account
  • Best Options Available
    • ICICI
    • SBI
  • Expert Tips
    • PAN card application challan or PAN mentioned in the Incorporation certificate is sufficient to initiate the account opening process.
    • Open account in at least 2 highly networked banks. As in case a Bank has issues, Business is not disturbed
    • Most of the established banks provide special privilege accounts to Startups

#2 Depositing of Share Capital money into Bank Account

  • Time frame
    • Within 60 days of the Incorporation of the company, every shareholder must deposit the contribution into bank account
  • Modes of deposits
    • A cheque or internet transfer from the personal account of the shareholder into Company's bank account.
    • Any shareholder holding shares worth Rs. 20,000 or more must pay only by way of cheque or internet transfer and not in cash.
  • Expert Tips
    • Any amount less than Rs. 20,000 may be paid in cash, however it is advisable to make the Payment through cheque or internet transfer

#3 Issue of Share Certificates to Shareholders

  • Time frame
    • The company must issue Share Certificates to its shareholders within 2 months of its Incorporation
  • Importance
    • A share certificate is a documentary evidence of a number of shares held by an individual in the Company.
    • For non-compliance the Penalty is heavy. Fine to the Company range from Rs. 25,000 to Rs. 500,000. To Individual directors, penalty from Rs. 10,000 to Rs. 100,000.
  • Tips
    • Startupwala can get you Share Certificates booklet or issue of duplicate share certificate free of cost

#4 Disclosure of interest by Directors

  • Time frame
    • Every Director of the Company in its First Board meeting after incorporation will disclose his or her interest (ownership or shareholding or directorship) in any other company/LLP/Firm.
  • Importance
    • This is a very important compliance, which helps board of directors to take transparent decisions in the interest of the Company and to take up related party transaction compliances.
  • Tips
    • Startupwala can get you Share Certificates booklet or issue of duplicate share certificate free of cost

#5 GST Registration

  • Requirements
    • If your current supply of goods or service is over Rs. 20 lakh, you need to get a GST Registration (if your business operates exclusively in the North Eastern states, Rs. 10 lakh).
  • Importance
    • Many Indirect taxes like VAT, Excise Duty, Service Tax, CST, Import- Export, Octroi, Luxury Tax and Entertainment Tax now only require a GST registration. This will result in less compliances and help businesses to focus more into their business.
  • Expert Tips
    • Anyone supplying goods or services to another state, need to apply for GST regardless of turnover.
    • Even online service provider serving customers in another State will instantly attract GST registration.
    • Get GST registration in 1 day @ Rs. 1999 through Startupwala.com

#6 MSME /SSI Registration

  • Requirements
    • MSME registration is the procedure to get your company registered under MSME development Act for SME benefits.
  • Importance
    • MSME is also known as SSI registration, have many benefits:
      1. Easy collateral free bank loan up to 1 Crore
      2. 1% exemption on interest rate on Bank OD
      3. Preference in procuring Government tenders
      4. Concession in Electricity bills
      5. Tax Rebates
      6. Protection against the delay in payment from Buyers
  • Tips
    • Get MSME registration in 1 day @ Rs. 1699 through Startupwala.com

#7 Trademark Registration

  • Requirements
    • Many brands in the world value their trademark more than their any other physical assets and want to protect it through; Trademark Registration.
  • Importance
    • Protecting the name is equal to protecting the business.
      • Protection against Copycats
      • Helps in expansion of business
      • Trademark can be rented for royalty
      • Helps in image building and credibility
      • Customers give more preference to brands with TM tag
  • Tips
    • Get Trademark registration in 1 day @ Rs. 1499 through Startupwala.com

#8 Accounting Process

  • Requirements
    • Get your Invoicing, book keeping and cash flow management set right from the beginning
  • Importance
    • An automated cash flow or account management system will help you save lot of time and money
    • The first Auditor must be appointed within one month from the date of incorporation of Company.
  • Tips
    • Startupwala gives away free Online Invoicing and cash flow management software with automatic Bank account syncing for its AMC clients which starts @ Rs.999 per month.

AMC for ROC Compliance

@ Rs.999

(Per Month)
(EMI Option Available)

Free

Share Certificate Book + Minutes Book
+ Statutory Register + Online Accounting Software
worth Rs. 9000 with your AMC

#9 Company Minutes Book & Statutory Registers

  • Requirements
    • A Private Limited Company has to maintain and update from time to time 7 to 8 mandatory registers like Register of shares, Register of Members, Register of Directors etc, besides Minutes of the Board Meetings and Annual General Meeting
  • Importance
    • Statutory Registers and Minutes book are documentary evidence of decisions of the Company.
    • For non-compliance the Penalty is heavy. Fine to the Company range from Rs. 50,000 to Rs. 300,000. In addition to Rs. 1,000 per day for continuing default
  • Tips
    • Startupwala gets you Statutory Registers and Minutes binders free of cost with its AMC services

#10 Board of Directors Meeting

  • Requirements
    • The First Board meeting of a Pvt. Ltd. Company shall be conducted within 30 days of Incorporation
    • Further, minimum 4 Board Meetings shall be held in a calendar year (one meeting in every 3 months).
  • Importance
    • Directors Meeting or Board meetings are very important events in decision making process and management of the company.
    • Following the legal procedure is very important for compliance purpose, non-compliance may lead to legal problems in case of disputes among the Directors
  • Tips
    • In case of a Pvt. Ltd. Company which is classified as a Small Company, two Board Meetings shall be held in a calendar year (one meeting in every half year)
    • Most of the startups fall within the category of Small Company.
    • For non-compliance the Penalty to the Company and company may range from Rs. 5,000 to Rs. 25,000.

#11 Shareholders Meeting

  • Requirements
    • The Shareholders meeting or an AGM is a very important meeting of Shareholders
    • AGM need to be held once in every calendar year and with in 6 months from the date of closure of the financial year
  • Importance
    • The primary agenda of an AGM includes approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, appointment and remuneration of directors etc.
    • The legal procedure for Notice, Attendance and Minutes recording are very important compliances
  • Tips
    • The Annual General Meeting shall be held during business hours, on a non-public holiday and generally to take place at the registered office of the company.
    • For non-compliance, the Company and Directors in default shall be punishable with fine which may extend to Rs. 100,000 and Rs. 5,000 for every day of delay

#12 Income Tax Return Filing

  • Requirements
    • Income Tax return is a statement of Company's earnings from various sources of income, tax liability thereon, details of tax paid and any refunds that have to be given by the government.
    • Filing of Income Tax return is an annual event and need to done once in a year.
  • Importance
    • Non-filing of Income Tax Return attracts interest, penalty, prosecution and scrutiny from the Income Tax Department.
  • Tips
    • IT return is mandatory even if the company does not make any income during the year.

#13 ROC Filing of Annual Return

  • Requirements
    • Every company is required to file its Annual Return (MGT-7) with the ROC within 60 days of AGM. The Financials including Balance Sheet, Profit and loss account (AOC-4) to be filed within 30 days of AGM. The Auditor Appointment (ADT-1) to be filed within 15 days from the AGM.
  • Importance
    • The ROC Annual Filing is an annual event giving details of Management, Financial performance and Governance to the ROC under whose jurisdiction the Company registered office is located.
  • Expert Tips
    • Recently the MCA has striked off more than 1 lakh companies from its records for non-filing of Annual returns
    • Normal Penalty for delay in filing may lead to 12 times of normal filing fees for each eForm separately
    • Moreover, the Company may be punishable with fine of Rs. 50,000 which may extend to Rs. 5,00,000 and
    • Director in default may be punishable with imprisonment upto 6 Months or with Minimum Fine of Rs. 50,000 which may extend to Rs. 500,000 or with both.

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