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Starting a new venture is an exciting milestone, but incorporation is only the beginning. Once your company is registered, several legal and financial obligations arise that must be fulfilled to avoid penalties and ensure smooth operations. Fulfilling these post-incorporation compliances lays the groundwork for credibility, funding, and long-term stability.

This blog provides a structured compliance checklist to help startups in India navigate the early legal and regulatory requirements after incorporation.

1. PAN and TAN Application

After incorporation, the company must obtain:

• Permanent Account Number (PAN) for taxation

• Tax Deduction and Collection Account Number (TAN) if the company is liable to deduct TDS

These are required for various statutory filings and financial transactions.

2. Opening a Company Bank Account

A current account in the company’s name must be opened using the Certificate of Incorporation, PAN, and other KYC documents. This account will be used for all business-related financial activities.

3. Commencement of Business Filing (INC-20A)

For private companies registered with share capital, Form INC-20A must be filed within 180 days of incorporation. This confirms that subscribers have paid their shares and that the company has begun business operations.

Failure to file can result in penalties and restrictions on business activities.

4. Appointment of Statutory Auditor

A Chartered Accountant must be appointed as the first statutory auditor within 30 days from the date of incorporation. The auditor will handle the audit of the company’s financial statements.

5. Maintaining Statutory Registers and Records

The company must maintain statutory registers such as:

• Register of Members

• Register of Directors

• Register of Share Certificates Issued

These records must be updated regularly and kept at the registered office.

6. GST Registration (If Applicable)

If the startup’s turnover exceeds the prescribed threshold (₹40 lakh or ₹20 lakh depending on the state and nature of supply), or if it deals in inter-state supply, it must obtain Goods and Services Tax (GST) registration.

Voluntary registration is also possible and beneficial for availing input tax credit.

7. Shops and Establishment License

This license is required under state laws for every office or commercial establishment. It governs working hours, holidays, and employee rights, and must be obtained soon after commencing operations.

8. Professional Tax Registration (if applicable)

In some states, Professional Tax is applicable on businesses and employees. Registration and monthly/quarterly returns are mandatory depending on the state.

9. Employee-Related Compliances (PF/ESIC)

If the startup has 20 or more employees (10 for ESIC), registration under:

• Employees’ Provident Fund (EPF)

• Employees' State Insurance Corporation (ESIC)

is required. Contributions must be deducted and deposited monthly.

10. Trademark Protection (Optional but Recommended)

Though not mandatory, registering the company’s name/logo as a trademark helps protect the brand from misuse and establishes legal ownership.

11. Drafting and Adoption of Key Policies

Startups should document and adopt internal policies such as:

• Employment Agreements

• Founders’ Agreements

• NDAs and IP Assignment Agreements

• Privacy Policy (especially for web-based services)

These documents create clarity and reduce the risk of future disputes.

12. Filing of Annual and Event-Based ROC Compliances

After incorporation, companies must comply with regular Registrar of Companies (ROC) filings such as:

• Form AOC-4: Filing of financial statements

• Form MGT-7: Annual Return

• DIR-3 KYC: Director KYC update

Additionally, event-based filings are required for changes like new directors, share allotments, or office address updates.

Conclusion

Navigating the early compliance landscape is essential for a startup's survival and scalability. Addressing these legal and financial steps promptly not only ensures compliance with the law but also instills investor and customer confidence. Engaging professionals such as Chartered Accountants or Company Secretaries early on can help streamline these processes and ensure nothing is overlooked.