Private Limited Company Compliance : A Practical Post-Incorporation Guide

CA RAMAKRISHNA SANJAY

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Congratulations! Incorporating your company is a huge milestone

"Incorporation is not the finish line—it is the starting point."

Once a company receives its Certificate of Incorporation (COI), it enters a regulated framework governed by the Companies Act, 2013.

Here is to-the-point guide on the mandatory post-incorporation steps for a Private Limited Company in India.

📅 Phase 1: Immediate Post-Incorporation (First 30 Days)

✔ Key Actions

• 🏦 Bank Account Opening
  Essential for operational readiness and capital infusion.

• 👥 First Board Meeting (Section 173)
  Must be conducted within 30 days
  Covers:

  • Appointment of auditor

  • Disclosure of interest

  • Adoption of initial resolutions

• 🧾 Appointment of First Auditor
  To be appointed by the Board within 30 days

• 📄 Issue of Share Certificates
  Must be issued within 60 days to subscribers

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🚨 Phase 2: Commencement of Business (Critical Compliance)

📌 INC-20A – Declaration of Commencement

This is a non-negotiable compliance checkpoint.

• Timeline: Within 180 days

• Pre-condition: Share capital must be deposited in company bank account

• Certification: Filed by a practicing professional

⚠ Risk Exposure

• Company penalty: up to ₹50,000

• Directors: ₹1,000 per day

• Potential strike-off by ROC

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🔁 Phase 3: Recurring Annual Compliances

Once operational, compliance becomes cyclical.

📊 1. DIR-3 KYC

• Applicable to all directors holding DIN

• Due Date: 30th September

• Impact of Delay: DIN deactivation + ₹5,000 fee

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📑 2. AOC-4 (Financial Statements)

• Filing of:

  • Balance Sheet

  • Profit & Loss Account

• Due Date: Within 30 days of AGM

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📘 3. MGT-7 / MGT-7A (Annual Return)

• Captures:

  • Shareholding pattern

  • Governance structure

• Due Date: Within 60 days of AGM

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💰 4. Income Tax Return (ITR-6)

• Due Date: Typically 31st October (audit cases)

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💡 Strategic Compliance Insights 

✔ GST Registration

✔ Statutory Registers

✔ Professional Tax (State-Specific)

📌 Conclusion

Compliance is not a regulatory burden.

A company that is compliant:

• Builds investor confidence

• Avoids legal disruption

• Scales sustainably