You finally received the Email from the Ministry of Corporate Affairs (MCA). Attached is your Certificate of Incorporation.
You’ve popped the champagne, updated your LinkedIn profile to “Founder & CEO,” and ordered your first batch of business cards. It is an incredible feeling.
But as the dust settles, reality sets in. What happens next?
At CA Pavan Kumar & Co., we frequently encounter entrepreneurs under the impression that incorporating their company is the end of the legal road. In reality, that’s just the starting point.
It’s like giving birth; now, the real work begins. You need to nurture it, protect it, and ensure its well-being through a series of required compliance measures.
If you miss these early deadlines, the MCA charges heavy per-day penalties, and in severe cases, they can even freeze your bank account or strike off your company name.
To help you navigate Year One without the stress, we have mapped out your essential “Startup Compliance Calendar.”
Phase 1: The First 30 Days (The Foundation)
Do not wait to start operations before completing these steps. The clock starts ticking on the exact day your company is incorporated.
- Open a Current Bank Account: You cannot use your personal savings account anymore. Take your Certificate of Incorporation, MOA, and AOA to a bank and open a corporate current account.
- Deposit the Capital: Remember the “Authorized Capital” you promised when registering? (Usually ₹1 Lakh). You and your co-founders must transfer that exact amount from your personal accounts into the new company bank account.
- Appointing Your First Auditor: This is a critical step. The Companies Act mandates that you engage a Chartered Accountant as your company’s statutory auditor within thirty days of incorporation. Failing to do so means you’ll need to convene an Extraordinary General Meeting (EGM) to rectify the oversight, a process that’s best avoided.
- Convene Your Initial Board Meeting: The directors are required to meet formally within a month. During this meeting, they’ll need to document the proceedings in writing, officially adopt the company’s seal, set up bank accounts, and appoint an auditor.
Phase 2: By Day 180 (The “Green Light” Form)
You have a bank account, and it has money in it. Can you start invoicing clients? Technically, no. Not until you file one very important form.
Form INC-20A, also known as the Commencement of Business form, needs to be submitted to the Ministry of Corporate Affairs within six months of your company’s incorporation. This filing is the responsibility of your auditor. Essentially, it’s the government’s way of confirming that the company’s founders have fulfilled their initial capital commitments by depositing the agreed-upon funds into the company’s bank account.
- The Risk: The consequence of failing to file INC-20A is significant. Without this filing, your company is effectively barred from legally securing loans. Furthermore, the Registrar of Companies (ROC) possesses the authority to dissolve your company, operating under the presumption that it functions merely as a “shell” corporation.
Phase 3: The Monthly Routine (The Guardrails)
After the initial setup is complete, you’re in the operational phase. You’ll want to set calendar reminders for these recurring dates:
- 7th of Every Month (TDS): Pay your TDS (Tax Deducted at Source). If you withheld taxes from your rent, contractor payments, or employee wages last month, the deadline to remit those funds to the government is the 7th.
- 15th of Each Month (PF & ESI): If your workforce surpasses the threshold for these regulations, you’ll need to make contributions to the Provident Fund (PF) and Employee State Insurance (ESI).
- 20th of Each Month (GST): Submit your GSTR-3B and settle your monthly GST dues.
Phase 4: The Year-End Finale (The Report Card)
With the financial year wrapping up on March 31st, it’s time for your company to get its report card ready. This means preparing the necessary documents for both the government and your investors.
- Statutory Audits: These involve a thorough examination. Your designated auditor will meticulously scrutinize each invoice, bank statement, and expense. The goal? To verify the accuracy and fairness of your balance sheet.
- Income Tax Return (ITR-6): Unlike individuals who file in July, companies generally have until October 31st to file their corporate tax returns (after the audit is complete).
- ROC Annual Filings (Forms AOC-4 & MGT-7): You must submit your audited financials and a list of your shareholders to the MCA. Think of this as renewing your company’s license to operate for another year.
Focus on the Product, Outsource the Paperwork
Looking at this calendar can feel overwhelming. You started a company to build software, sell coffee, or design clothes—not to memorize MCA form numbers.
Compliance shouldn’t be a speed bump on your road to success; it should be an invisible guardrail that keeps you safe.
Don’t let missed deadlines drain your startup capital in penalties. Let our team act as your virtual CFO and handle the calendar for you.
Schedule your appointment now by visiting our website: https://capavankumar.com/
- 📞 Call us: +91 9844081653
- 📧 Email: capavankumars@gmail.com