Registering a company in India feels like a big achievement. Many first-time founders believe the hard work ends once they receive the Certificate of Incorporation (COI).
However, incorporation is only the starting point. Post-incorporation compliances in India are mandatory legal steps that every company must complete after registration. These compliances ensure that your company is legally active, operational, and recognised by government authorities.
These compliances are not just legal formalities. They play a direct role in:
- Avoiding penalties and legal notices
- Opening and operating a company bank account
- Gaining investor and lender confidence
- Applying for government tenders and business loans
- Building a professional and trustworthy market reputation
A company that ignores post-incorporation compliance risks fines, blocked MCA filings, or even restrictions on doing business. Completing these steps on time turns compliance into a growth enabler—not a burden.
Key Takeaways
- Post-incorporation compliances are mandatory legal steps every Indian company must complete after registration.
- Filing INC-20A confirms that the company has received its share capital and is ready to operate.
- Appointing a statutory auditor and holding board meetings are essential for legal transparency.
- Maintaining statutory registers and filing annual returns keeps the company active and compliant.
- Timely compliance helps avoid penalties and builds trust with banks, investors, and authorities.
What Are Post-Incorporation Compliances in India?
Post-incorporation compliances are the legal and procedural requirements a company must follow after receiving its Certificate of Incorporation (COI) from the Ministry of Corporate Affairs (MCA).
These steps confirm that the company exists not just on paper, but also in real business terms. They ensure proper capital funding, governance, and record-keeping from day one.
For beginners in India, this is important because ignoring these requirements can lead to penalties or even company deactivation. For example, if a company fails to complete mandatory filings, the Registrar of Companies (ROC) can mark it inactive or initiate strike-off proceedings.
Immediate Compliances After Company Incorporation
Certain compliances must be completed immediately after incorporation. These are mandatory under the Companies Act, 2013.
They activate the company financially and legally, allowing it to operate without restrictions.
Verify Company Master Data on MCA (Best Practice)
Once incorporated, every founder should check the company’s Master Data on the MCA portal. This confirms what is officially recorded about your company.
Details visible include:
- Company name and CIN
- Registered office address
- Authorised and paid-up capital
- Email ID and company status
Even small errors—such as a wrong address or capital amount—can delay loan approvals or cause rejection of ROC filings. Any mistake should be corrected immediately through your incorporation consultant.
Mandatory Compliance Checklist
| Compliance | Form / Action | Timeline | Practical Meaning |
| Opening Bank Account | COI, PAN, MoA, AoA | Within 30 days | Open a current account in the company’s name |
| Deposit Share Capital | Shareholders’ deposit | Within 30 days | Promoters deposit promised capital |
| Commencement of Business | INC-20A | Within 180 days | Declare business readiness |
| Appoint Auditor | Board Resolution | Within 30 days | Appoint statutory auditor |
| Issue Share Certificates | Board Resolution | Within 60 days | Provide ownership proof |
Without opening a bank account and depositing share capital, the company cannot file INC-20A, which can block further MCA filings.
Declaration of Commencement of Business (Form INC-20A)
Form INC-20A confirms that the company has received its share capital from shareholders.
Every newly incorporated company must file this form within 180 days of incorporation. This requirement exists to prevent shell companies and proves that the company is genuinely ready to operate.
Failing to file INC-20A can result in penalties, restriction on business activities, or even removal of the company’s name from the MCA registry.
Registered Office Compliance (Form INC-22)
As per Section 12 of the Companies Act, 2013, every company must have a registered office from the 15th day of incorporation and file its details with the ROC using Form INC-22 within 30 days.
Documents required include:
- Utility bill (not older than 2 months)
- Ownership proof or rent agreement
- No Objection Certificate (NOC) from owner (if rented)
This registered office is the official address for receiving legal notices and government communications. Delay or incorrect filing may lead to penalties or non-compliance status.
Why Appointing a Statutory Auditor Is Important
A statutory auditor verifies the company’s financial records and ensures compliance with accounting laws.
The first auditor is appointed by the Board within 30 days of incorporation. Form ADT-1 is NOT mandatory for the first auditor.
The auditor holds office until the conclusion of the first Annual General Meeting (AGM).
This appointment is critical because audited financial statements are required by banks, investors, and tax authorities.
First Board Meeting and Minutes Requirements
Every company must conduct its first Board Meeting within 30 days of incorporation.
Key decisions recorded include:
- Confirmation of registered office
- Appointment of first auditor
- Opening of bank account
- Issuance of share certificates
- Disclosure of directors’ interests
Even if there is only one director, the board meeting must still be recorded, and minutes must be properly signed and stored. These records act as legal evidence during audits or inspections.
Display of Company Identity at Registered Office
Every company must display its identity at the registered office entrance, including:
- Company name
- Registered office address
- CIN
- Phone number and email ID
The same details must appear on:
- Letterheads
- Invoices
- Emails
- Official communications
Failure to comply attracts a penalty of ₹1,000 per day, up to ₹1 lakh.
Statutory Registers a Company Must Maintain
The Companies Act, 2013 requires companies to maintain statutory registers such as:
- Register of Members (MGT-1)
- Register of Directors & KMP
- Register of Charges
- Register of Share Transfers
These registers are essential during audits, funding discussions, and regulatory inspections.
Annual Compliances After the First Financial Year
Once the company completes its financial year, annual compliances become mandatory.
| Form | Purpose | Due Date |
| AOC-4 | Audited financial statements | Within 30 days of AGM |
| MGT-7 | Annual return | Within 60 days of AGM |
| DIR-3 KYC | Director KYC update | Before 30 September |
Late filing attracts ₹100 per day with no maximum cap, which can quickly become expensive even for small businesses.
Penalties for Non-Compliance
Non-compliance can lead to heavy fines, blocked filings, or company strike-off.
Continuous defaults damage the company’s legal standing and the directors’ credibility.
Conclusion
Post-incorporation compliances form the backbone of a legally strong private limited company in India.
From verifying MCA master data and filing INC-20A to appointing auditors, holding board meetings, and completing annual filings—each step builds credibility and operational stability.
Starting compliance early avoids last-minute panic, penalties, and legal trouble. Doing things the right way from day one makes scaling, funding, and long-term growth significantly easier.
Frequently Asked Questions About Post-Incorporation Compliances in India
If you are a first-time founder or entrepreneur, post-incorporation compliances can feel confusing at first. These FAQs answer not only the basic questions but also the deeper, real-world doubts that beginners in India commonly have after registering a company.
Is post-incorporation compliance mandatory for all companies in India?
Yes, almost all companies—private limited, public limited, and one-person companies—must follow post-incorporation compliances.
The rules come under the Companies Act, 2013. Even small startups and bootstrapped companies must comply. Ignoring them can lead to penalties or company strike-off.
What happens if I start a business without completing INC-20A?
Starting business without filing INC-20A is considered non-compliance.
The MCA may charge a daily penalty and can also mark your company as inactive.
In practical terms, this can block further filings and create problems with banks. Many Indian founders make this mistake due to lack of awareness.
Is opening a company bank account compulsory after incorporation?
Yes, opening a current bank account in the company’s name is essential.
Share capital must be deposited into this account before filing INC-20A. Without a bank account, your company cannot legally receive funds.
For example, investors or clients cannot transfer money to a personal account for company work.
What exactly is “share capital,” and why must it be deposited?
Share capital is the money that shareholders promise to invest in the company. Depositing it shows that the company is financially genuine. This protects the government and creditors from fake or shell companies.
For instance, if two founders agree to invest ₹1 lakh each, that money must actually reach the company’s bank account.
Can a company operate without appointing an auditor?
No, appointing a statutory auditor is compulsory within 30 days of incorporation.
The auditor checks financial records and ensures transparency.
Without an auditor, the ROC may appoint one and impose penalties. This also creates trust issues when dealing with banks or investors.
Do I need GST registration immediately after incorporation?
Not always. GST registration depends on turnover and business type.
For example, if your service business has not crossed ₹20 lakh turnover, GST is not mandatory yet. Many beginners wrongly assume GST is compulsory from day one.
Can a company be struck off for missing post-incorporation compliances?
Yes, continuous non-compliance can lead to company strike-off by the ROC. This means the company legally stops existing. Directors may also face future restrictions. That’s why early compliance is critical for long-term business survival.
Understanding post-incorporation compliances early helps you avoid penalties and build a strong business foundation. To deepen your learning, explore related topics like annual MCA filings, director responsibilities, GST basics, and corporate governance.
