Starting a Private Limited Company in India? Here’s What Comes Next
If you’ve recently registered your private limited company, you’re probably feeling both excited and overwhelmed. You might be wondering:
- Is registering the company enough?
- What legal steps do I need to take after incorporation?
- Am I already non-compliant without knowing it?
These are completely normal questions. Starting your company is only the first step. What you do next can determine how strong, trustworthy, and successful your business will become.
This guide is designed especially for you. We’ll walk through all the essential post-incorporation compliance for private limited companies in India, with relatable examples and practical advice.
Why Post-Incorporation Compliance Matters More Than You Think
Registering your business with the Ministry of Corporate Affairs (MCA) gives your company a legal identity. But to keep that identity active, clean, and trustworthy, you must follow a few important steps called post-incorporation compliance requirements.
These aren’t just formalities. They’re critical to:
- Avoiding penalties and legal trouble
- Opening a business bank account
- Gaining investor confidence
- Applying for government tenders or business loans
- Building a professional reputation in your market
A registered company that fails to comply could face fines or even restrictions from doing business legally. But with a little awareness and timely action, compliance becomes a powerful tool for growth—not a burden.
Step 1: Check Your Company Master Data Online
Every business owner should know what’s officially recorded about their company.
Once your company is registered, you’ll receive a Certificate of Incorporation. But it’s your responsibility to verify whether the MCA has recorded your company details correctly. You can check this on the MCA website under “Company Master Data.”
It shows:
- Your company’s legal name and CIN (Corporate Identity Number)
- Registered office address
- Email ID, authorised and paid-up capital
- Status and type of company
Let’s say you’re a content writer in Ahmedabad who has just registered a private limited company. You go online and check that your authorised capital is listed as ₹1 lakh and your office address is correctly mentioned. But if any of these are wrong, you must raise it with the person or consultant who registered your business.
Even a small error in your registered address or capital amount can delay loan approvals or cause rejection of ROC filings. That’s why checking your master data early is a smart move.
Step 2: Set Up and File Registered Office Details (Form INC-22)
According to Section 12 of the Companies Act, 2013, your company must have a registered office from the 15th day of incorporation and file its details with the Registrar of Companies (ROC) within 30 days using Form INC-22.
This office is where all official communications—legal notices, tax letters, and government correspondence—will be sent.
For example, if you’re running a small candle-making business from your home in Bhopal, and you’ve used your home address as the registered office, you’ll need to provide:
- Rent agreement or ownership proof
- Utility bill (not older than 2 months)
- A No Objection Certificate (NOC) from the property owner, if you’re not the owner
Delaying this filing could result in penalties or your company being flagged as non-compliant.
Step 3: Appoint Your First Auditor Within 30 Days
As per law, every private limited company must appoint its first Chartered Accountant (CA) as an auditor within 30 days of incorporation. This auditor will verify your company’s financial records and prepare the audit report at year-end.
Let’s take the example of a couple running a printing unit in Ludhiana. They registered their private limited company but forgot to appoint an auditor. When it was time to file financial statements, they faced delays and had to pay late filing fees.
If your board fails to appoint an auditor, the shareholders must appoint one within 90 days in a general meeting. The auditor will hold office until the conclusion of the first Annual General Meeting (AGM).
No ROC form needs to be filed for first auditor appointment, but this step is still mandatory. Keep records of your board meeting and the appointment resolution safely stored.
Step 4: Display Company Identity Clearly at Your Office
Your company must publicly display its basic identity at the entrance of your registered office. This includes:
- Company name
- Registered office address
- CIN (Corporate Identity Number)
- Phone number and email ID
- Website or fax (if available)
This information must also appear on:
- Business letters
- Invoices
- Letterheads
- Emails
- Official communications
Skipping this also carries a daily penalty of ₹1,000—up to a maximum of ₹1 lakh. So, a simple nameplate outside your registered address and updated stationery can save you from unnecessary trouble.
Step 5: Open a Bank Account and Issue Share Certificates
Every subscriber to your company’s Memorandum of Association must pay their committed share capital into the company’s business bank account. This account must be opened in the company’s name soon after registration.
Let’s say you and your co-founder start a mobile repair shop in Kolkata and invest ₹25,000 each. You must open a company bank account and deposit this money via cheque or net banking. Cash is not allowed.
After receiving this money, you must issue share certificates to each subscriber within 2 months of incorporation.
Step 6: File Form INC-20A – Declaration of Commencement of Business
After the share capital has been received and deposited into your bank account, your company must file Form INC-20A with the MCA. This form declares that your company has officially started business.
You must do this within 6 months of incorporation.
Failing to file INC-20A can result in your company being blocked from doing business, fined, or even removed from the MCA registry.
Step 7: Hold Your First Board Meeting
A private limited company must hold its first board meeting within 30 days of incorporation. During this meeting, several important actions must be recorded:
- Registered office confirmation
- Appointment of the first auditor
- Bank account opening approval
- Issuance of share certificates
- Disclosure of interests by directors
- Declaration of non-disqualification
This meeting can even be held virtually if your directors are in different cities, as long as minutes are recorded and signed.
Even if you’re the only director and shareholder, a board meeting still needs to be recorded with meeting minutes. This ensures legal compliance if your company is ever audited or inspected.
Step 8: File Financials and Annual Return at Year-End
Every year, a private limited company must prepare and file:
- Balance Sheet
- Income statement (Profit and Loss Statement)
- Cash Flow Statement (if applicable)
- Audit Report
- Annual Return
These must be filed with the ROC after being signed by your appointed CA. If you’re running a home-based chocolate-making business in Jaipur, even if your revenue is low, these filings are still mandatory.
Missing deadlines results in ₹100 per day in late fees—with no maximum cap. That adds up quickly. So, always coordinate with your CA well before the financial year ends.
In Summary: Compliance is Not a Burden—It’s Your Business Backbone
By following the above post-incorporation compliance for private limited companies, you’re not just ticking off legal boxes—you’re building a reputation of trust, professionalism, and credibility. That matters deeply in the long run, whether you’re applying for funding, selling to clients, or scaling your small business into something bigger.
Don’t wait for notices or last-minute rushes. Stay one step ahead with timely actions and professional advice. And remember, even if your business is just starting out, doing things the right way now makes everything easier in the future.
