New Company Incorporated? Complete INC-20A and These Important First Steps Before Starting Business

 

STARTUP COMPLIANCE GUIDE

New Company Incorporated? Complete INC-20A Before Starting Business

The incorporation certificate creates the company. It does not complete all the legal steps needed to begin operations.

The 180-day requirement

A company having share capital must generally file Form INC-20A within 180 days from incorporation, declaring that every subscriber has paid the value of shares agreed to be taken.

What is Form INC-20A?

INC-20A is the declaration for commencement of business under Section 10A of the Companies Act, 2013. It is filed by a director and professionally verified in the prescribed manner.

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Share capital

Subscribers deposit the value of shares agreed in the incorporation documents.

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Declaration

A director makes the prescribed commencement-of-business declaration.

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Verification

The form is verified by a practising CA, CS or Cost Accountant as prescribed.

Important legal effect

Until the Section 10A requirements are completed, a company covered by the provision cannot commence business or exercise borrowing powers.

Who should examine INC-20A applicability?

Situation	General position
New company having share capital	INC-20A applicability should be checked immediately after incorporation.
Company without share capital	Section 10A filing does not apply merely as an INC-20A requirement; other compliances may still apply.
Company not yet doing business	Inactivity does not itself remove the 180-day filing responsibility.

Documents and checks for INC-20A

• Certificate of incorporation
• Memorandum showing subscribers and agreed shareholding
• Company bank-account details
• Bank statement showing subscriber share-capital receipts
• Confirmation that payment came from the respective subscribers
• Correct amount received from each subscriber
• Verification of the registered office
• Valid digital signature of the filing director

Common mistakes founders make

• Starting operations immediately after receiving the incorporation certificate
• Depositing share capital from an unrelated person’s bank account
• Receiving an amount that does not match the agreed subscription
• Treating a director’s loan as subscriber share capital
• Using the company bank account before completing the required review
• Waiting until the end of 180 days to collect bank evidence
• Forgetting the first-auditor appointment

Other immediate startup actions

Within the first 30 days

For a non-government company, arrange the Board appointment of the first auditor within 30 days from registration.

Set up proper books

Start accounting from the first transaction. Keep incorporation expenses, capital and director transactions separate.

Check registrations

Examine GST, professional tax, Shops and Establishments, PF, ESI and other registrations based on actual applicability.

Simple example

If two subscribers agreed to take shares worth ₹50,000 each, the company should verify receipt of the agreed subscription from both subscribers. A general transfer from one director without a clear subscriber-wise trail may create difficulty while preparing the declaration.

How Gururaaja Sanjay and Co can assist

We assist new companies with a post-incorporation compliance review, subscriber-capital verification, INC-20A preparation, first-auditor documentation and applicable tax registrations. Each filing is completed after reviewing the company’s documents and approval.

Has your company been newly incorporated?

Complete the post-incorporation review before beginning business or borrowing.

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General educational information verified on 4 October 2026 from Sections 10A and 139 of the Companies Act and MCA’s INC-20A instruction material. Applicability depends on the company’s constitution and facts.

LLP Form 8 Due on 30 October 2026: Don’t File Before Checking These Accounts and Solvency Details

 

LLP ANNUAL COMPLIANCE

LLP Form 8 Due on 30 October 2026: Check These Details Before Filing

Inactive LLPs and LLPs with small turnover should not assume that annual filing can be skipped.

Important deadline

LLP Form 8 for FY 2025–26 is ordinarily required to be filed by 30 October 2026. Do not wait until the last day to finalise the accounts or obtain signatures.

What is LLP Form 8?

Form 8 is the LLP’s Statement of Account and Solvency. It contains financial information and a declaration regarding the LLP’s ability to pay its debts in the normal course of business.

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Accounts

Assets, liabilities, income, expenses and financial position of the LLP.

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Solvency

Declaration on whether the LLP can pay its debts as they become due.

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Authentication

The prescribed designated partners sign and authenticate the filing.

Does every LLP have to file Form 8?

Form 8 is an annual compliance requirement for LLPs, including LLPs with little or no business activity, unless the LLP has been legally closed and the filing obligation no longer applies.

Form 8 filing and LLP audit are different

Requirement	General position
Form 8 filing	Annual Statement of Account and Solvency filing for the LLP.
Audit under LLP Rules	Audit exemption is available where turnover does not exceed ₹40 lakh or contribution does not exceed ₹25 lakh, subject to the applicable rules and facts.
Voluntary audit	Partners may decide to have the LLP accounts audited even when exemption is available.

Common misunderstanding

Audit exemption does not automatically mean Form 8 exemption. Even an unaudited LLP must examine its annual filing responsibility and prepare correct accounts.

Last-minute Form 8 checklist

• Confirm LLP name, LLPIN and registered-office details
• Complete bookkeeping up to 31 March 2026
• Reconcile every bank account with the books
• Confirm partner contribution with the LLP agreement and MCA records
• Check loans from partners and related parties
• Verify trade receivables and payables
• Provide depreciation and outstanding expenses
• Reconcile GST, TDS and income-tax balances
• Check whether LLP audit is applicable
• Review the solvency declaration before signing
• Ensure designated partners’ DSCs are valid

Items commonly missed

• Contribution in the accounts does not match the LLP agreement
• Personal transactions are recorded in the LLP bank account
• Old receivables and payables remain without confirmation
• Partner loans are wrongly shown as contribution
• GST or TDS payable does not match the filed returns
• The solvency declaration is accepted without reviewing overdue liabilities
• Changes in partners or the LLP agreement were not separately reported

Simple example

An LLP may have no sales during FY 2025–26 but still have a bank balance, partner contribution, expenses or outstanding liabilities. These balances must be checked and properly reported instead of treating the LLP as having “nothing to file”.

How Gururaaja Sanjay and Co can assist

We assist LLPs with finalisation of accounts, audit-applicability review, reconciliation of statutory balances and preparation of annual MCA filing information. The filing is completed only after review and approval by the LLP.

Is your LLP Form 8 ready?

Arrange the accounts and supporting details early for a proper compliance review.

Call 7760252581 WhatsApp Us

General educational information verified on 3 October 2026 from the LLP Act, LLP Rules and MCA Form 8 instruction material. Check subsequent MCA notifications or extensions before filing.

PRACTICAL GST GUIDE

Wrong Invoice in GSTR-1? Fix It Through GSTR-1A Before Filing GSTR-3B

One careful review before filing GSTR-3B may prevent mismatches, customer complaints and future correction work.

Important opportunity for businesses

If you missed an invoice or entered certain sales details incorrectly in GSTR-1, you may use GSTR-1A to correct the same tax period before filing GSTR-3B.

What is GSTR-1A?

GSTR-1A is an optional return facility for adding missed outward-supply records or correcting certain records already reported in GSTR-1 for the same tax period.

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Add missed records

Include an invoice, debit note or credit note missed while filing GSTR-1.

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Correct reported records

Correct eligible details reported incorrectly in the current period’s GSTR-1.

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Update GSTR-3B

The corrected liability is carried into the same period’s GSTR-3B.

When can it be filed?

Question	Answer
Is GSTR-1A compulsory?	No. It is optional.
How many times can it be filed?	Only once for a tax period.
Can it be filed after GSTR-3B?	No. It closes after GSTR-3B is filed.
Can an earlier period be corrected?	GSTR-1A is for the current tax period’s GSTR-1. Earlier-period amendments continue through subsequent GSTR-1, subject to the legal time limit.
Can recipient GSTIN be changed?	No. This correction must be handled through the permitted subsequent-return process.

Mistakes to check before GSTR-3B

• Sales invoices missing from GSTR-1
• Incorrect taxable value or tax amount
• Wrong place of supply
• Incorrect intra-state or inter-state classification
• Missed debit notes or credit notes
• Wrong invoice date or invoice number
• Differences between GSTR-1 and the sales register
• Differences between GSTR-1 liability and draft GSTR-3B

A commonly missed portal issue

If you save records in GSTR-1A but do not file, delete or reset them, the portal may not allow you to proceed with GSTR-3B. Do not leave a partly prepared GSTR-1A unattended.

Simple monthly control

1. Download the filed GSTR-1.
2. Compare it with the final sales register.
3. Verify B2B invoices customer-wise.
4. Check debit notes, credit notes and advances.
5. Reconcile the tax liability with draft GSTR-3B.
6. Use GSTR-1A where an eligible correction is required.
7. Review the updated liability before filing GSTR-3B.

How Gururaaja Sanjay and Co can assist

We assist businesses with sales-register reconciliation, GSTR-1 review, eligible GSTR-1A corrections and GSTR-3B liability verification. Proper monthly reconciliation can reduce avoidable differences and follow-up work.

Found a mistake in your filed GSTR-1?

Have it reviewed before filing the same period’s GSTR-3B.

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General educational information verified from official GST Portal guidance on 2 October 2026. Applicability and correction method depend on the facts and portal status of each taxpayer.

Buying Property from an NRI? TAN Relief Starts 1 October 2026—but TDS Still Applies

IMPORTANT PROPERTY-TDS UPDATE

Buying Property from an NRI? TAN Relief Starts—but TDS Still Applies

A simpler PAN-based reporting process applies from 1 October 2026. Buyers should understand exactly what changed—and what did not.

The biggest misunderstanding

“TAN not required” does not mean “TDS not required”. The buyer must still calculate the applicable TDS correctly, deduct it, deposit it, report the transaction and provide the TDS certificate.

What has changed?

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PAN-based reporting

The specified resident individual or HUF buyer can use the new challan-cum-statement route without obtaining TAN only for this purpose.

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New Form 141 Schedule E

Schedule E captures the property, buyer, non-resident seller, consideration, capital-gain and TDS details.

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Form 132 certificate

The prescribed TDS certificate framework has also been updated for property transferred by a non-resident.

What the buyer must not assume

Wrong assumption	Correct approach
No TAN means no TDS.	Only the reporting mechanism is simplified. TDS obligations continue.
Every property purchase attracts flat 1% TDS.	Do not copy the resident-seller rule. The seller’s non-resident status and applicable provisions must be examined.
TDS can be checked after registration.	Complete the tax review before making or crediting the payment.
One filing is enough for all buyers.	Where there is more than one deductor, each deductor has to file separately.

Last-minute buyer checklist

Before releasing the property payment, confirm:

• The residential status of every seller
• PAN of the buyer and seller, wherever available
• Seller’s foreign address, email and contact details
• Tax Residency Certificate and foreign tax identification details, where relevant
• Agreement date, registration date and complete property address
• Sale consideration and stamp-duty value
• Whether payment is lump sum or in instalments
• Share of every buyer and seller
• Correct TDS rate, including applicable surcharge and cess
• Any lower or nil deduction certificate and its validity
• Previous payment and acknowledgement details for instalment transactions

One practical example

Suppose two resident individuals jointly purchase a flat from a non-resident seller. They should not simply deduct 1% or make one combined filing. The seller’s tax position, each buyer’s share, applicable deduction and separate reporting requirement should be examined before payment.

What professionals commonly miss

• Incorrectly treating the seller as resident based only on an Indian address or PAN
• Applying the resident-property TDS rule without examining non-resident provisions
• Ignoring surcharge and cess while calculating the deduction
• Mismatch between agreement, payment, stamp-duty and registration information
• Missing separate reporting where there are multiple buyers
• Failing to verify the scope and validity of a lower-deduction certificate
• Paying the full amount before deciding the correct TDS treatment

How Gururaaja Sanjay and Co can assist

We can review the seller’s residential status, transaction documents, applicable TDS, lower-deduction certificate and reporting information before the payment is released. A timely review can reduce avoidable mismatches and correction work.

Planning to buy property from an NRI?

Get the TDS position reviewed before making payment.

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General educational information based on CBDT Notification No. 121/2026 dated 22 September 2026. Tax treatment depends on the facts, residential status and documents of each transaction. Obtain professional advice before acting.

No DIR-3 KYC Deadline Today? MCA’s New 3-Year Director KYC Rule Explained

 

IMPORTANT MCA UPDATE

No DIR-3 KYC Deadline Today? MCA’s New 3-Year Rule Explained

Annual Director KYC has been replaced with a simpler three-year compliance cycle

Important: Under the revised MCA rules effective from 31 March 2026, DIR-3 KYC is no longer required every year by 30 September.

Many directors and businesses still remember 30 September as the annual DIR-3 KYC deadline. MCA has now replaced this annual requirement with a simpler KYC filing once every three years.

This reduces repetitive filing, but directors must still keep their mobile number, email address and residential address updated.

What exactly has changed?

Particulars	Earlier rule	New rule
Frequency	Every year	Once every three years
Regular due date	30 September	30 June after the relevant third financial year
Form	DIR-3 KYC or DIR-3 KYC Web	Revised DIR-3 KYC Web

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Already KYC-compliant?

MCA has clarified that directors whose KYC was already complete are covered by the new rules. Their next regular KYC filing is generally due by 30 June 2028.

Who needs to take action now?

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Mobile number changed

The new mobile number should be updated through DIR-3 KYC Web within the prescribed period.

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Email address changed

Do not wait until the next three-year filing date. Update the email details separately.

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Residential address changed

The revised residential address should be reported through the prescribed KYC process.

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DIN is deactivated

The revised form can also be used for DIN reactivation, subject to applicable filing requirements and fees.

Easy examples

Example 1: Existing compliant director

If the director had already completed KYC before the new rules and there is no change in particulars, regular KYC is generally not required on 30 September 2026. The next filing is due by 30 June 2028.

Example 2: DIN allotted during FY 2025–26

Under MCA’s illustration, the first three-year KYC filing would fall during April to June 2029.

Example 3: Email or address changes

The change should be updated within 30 days. Filing an update does not restart the normal three-year KYC cycle.

Most important point directors may miss

Three-year KYC does not mean “ignore changes for three years”

Any change in the director’s mobile number, email address or residential address must be updated within 30 days through DIR-3 KYC Web with the prescribed fee. The next regular three-year date cannot be used as a reason to delay the update.

Director compliance checklist

✓ Check whether the DIN status is active.

✓ Confirm the date of the last KYC filing.

✓ Verify the mobile number and email registered with MCA.

✓ Check whether the residential address has changed.

✓ Ensure PAN and DIN particulars match.

✓ Keep the DSC valid where professional certification is required.

✓ Maintain a director-wise compliance register with the next KYC date.

Documents and information to keep ready

• Director Identification Number
• PAN and identity details
• Current personal mobile number
• Current personal email address
• Present residential address
• Address proof, where an address update is required
• Valid Digital Signature Certificate, where applicable

Check your DIN and Director KYC status

Gururaaja Sanjay and Co can provide professional assistance in reviewing DIN status, identifying the applicable KYC cycle and completing permitted MCA compliance requirements based on the director’s records.

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Disclaimer: This article is general educational information based on MCA Notification G.S.R. 943(E) dated 31 December 2025, effective from 31 March 2026. The filing requirement should be checked using the director’s DIN allotment date, previous KYC status and subsequent changes.

Tax Audit Due Date Extended to 21 October 2026: Use These 21 Extra Days to Fix Form 3CD Errors

CBDT DEADLINE UPDATE • AY 2026–27

Tax Audit Due Date Extended to 21 October 2026

Use the additional time to correct Form 3CD, GST, MSME and TDS issues

TAX AUDIT REPORT

21 October 2026

Earlier: 30 September 2026

AUDIT-CASE ITR

21 November 2026

Earlier: 31 October 2026

Important clarification: CBDT announced this relief for the applicable regular audit cases for AY 2026–27. It should not be assumed that every audit form, transfer-pricing report or other statutory deadline has been extended.

The extension gives businesses and auditors additional time, but it should be used for better verification—not for postponing the audit. Incorrect reporting in Form 3CD can affect the income-tax return and may create questions during assessment.

What exactly has CBDT extended?

Compliance	Earlier date	Revised date
Applicable Tax Audit Report	30 September 2026	21 October 2026
ITR for applicable audit cases	31 October 2026	21 November 2026

What has not automatically changed?

The announcement does not by itself extend GST returns, TDS returns, ROC filings, advance-tax obligations or every separate audit report. Transfer-pricing and special audit cases should be checked independently.

Business owners: use the extra time for these checks

1. GST turnover reconciliation

Match sales as per books with GSTR-1 and GSTR-3B. Prepare reasons for every material difference.

2. AIS and Form 26AS

Check income, TDS, high-value transactions, property details and other information appearing in AIS.

3. MSME vendor status

Obtain vendor declarations and Udyam details. Identify dues covered by Section 43B(h).

4. TDS compliance

Review expense ledgers for non-deduction, short deduction, delayed payment and incorrect reporting.

5. Loans and cash transactions

Check acceptance and repayment of loans, deposits and specified sums against permitted payment modes.

6. Closing stock

Finalise quantity, valuation method, obsolete stock and differences between physical and book records.

Form 3CD clauses commonly missed

Clause 13 – Accounting method and ICDS

The financial accounts and taxable income may require ICDS adjustments. Simply writing “mercantile” is not always enough.

Clause 16 – Income not credited to profit and loss account

Check incentives, duty benefits, escalation claims, capital receipts and income directly credited elsewhere.

Clauses 21 and 26 – Disallowances and Section 43B

Review cash payments, personal or capital expenses, statutory liabilities and amounts allowed only on payment.

Clause 22 – MSME and Section 43B(h)

Vendor classification, Udyam status, agreed credit period and actual payment date require proper supporting records.

Clause 31 – Loans, deposits and specified sums

Do not check only the year-end balance. Examine receipts and repayments during the entire year.

Clause 34 – TDS and TCS

Reconcile expense ledgers, TDS returns, challans and outstanding amounts. Vendor-wise testing is essential.

Clause 35 – Quantitative details

Businesses often finalise values but leave quantities incomplete. Stock records and production details need verification.

Clause 44 – GST-wise breakup of expenditure

Total expenditure must be properly classified between registered, composition, exempt and unregistered suppliers.

The most commonly overlooked area

Clause 22 and Section 43B(h) deserve special attention. Many businesses identify MSME dues only from the vendor name or invoice. The correct exercise requires the vendor’s MSME status, nature of enterprise, invoice date, accepted credit period and payment date. A normal ledger ageing report may not be sufficient.

When may an auditor need a qualification or observation?

A qualification should not be inserted as a routine disclaimer. It should be specific, supported by the audit work and connected to a material limitation or misstatement.

Situation	Possible reporting approach
Records are incomplete or not produced	State the exact records not available and the clauses affected.
Closing stock cannot be verified	Describe the absence of quantity records or physical verification and its effect.
GST or turnover is not reconciled	Report the unreconciled amount and avoid a general statement such as “subject to GST reconciliation.”
Vendor MSME status is unavailable	State the limitation and the basis used for Clause 22 reporting.
External confirmations are unavailable	Mention balances affected and whether alternative procedures were possible.
Personal expenses cannot be separated	Quantify where possible and explain the limitation instead of using a blanket disclaimer.

Good qualification practice: identify the issue, mention the affected amount or records, state the audit procedure performed, explain the limitation and connect it to the relevant Form 3CD clause. Avoid vague phrases that do not tell the reader what went wrong.

Final 48-hour-style checklist

• Complete the trial balance and financial statements.
• Match turnover with GST returns and bank credits.
• Reconcile AIS, Form 26AS and TDS certificates.
• Collect MSME declarations and prepare invoice-wise ageing.
• Review cash payments, loans and property transactions.
• Check TDS section, rate, deduction date and payment date.
• Complete Clause 44 expenditure classification.
• Confirm opening balances and related-party details.
• Obtain signed financial statements and management representation.
• Generate UDIN and verify all figures before uploading.
• Ensure the taxpayer accepts the uploaded report on the portal.
• Download and preserve the acknowledgement and final report.

Use the extension for accuracy—not delay

Gururaaja Sanjay and Co can provide professional assistance with tax-audit applicability, account reconciliation, Form 3CD review and compliance based on your records and circumstances.

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Disclaimer: This article is for general education. Applicability, reporting and audit qualifications depend on the records and facts of each taxpayer. Please verify the formal CBDT order and portal updates before filing.