After incorporating a Private Limited Company, it is essential to comply with various legal procedures to avoid penalties and ensure smooth operations. The following checklist outlines the necessary compliance requirements for the first year:
Obtaining PAN and TAN:
Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) immediately after incorporation. TAN is mandatory for deducting and depositing Tax Deducted at Source (TDS), while PAN is required for all financial transactions.
Open a Current Bank Account
Open a bank account in the company’s name after receiving PAN. This is crucial for handling business banking, payroll, and issuing shares.
Appointment of Auditor
First Auditor of a Private Limited Company must be appointed within 30 days from the date of incorporation It is the responsibility of an auditor to examine these financial statements and check for their accuracy as well as compliance with statutory guidelines. If you neglect to hire an auditor within the time limit, then consequences and compliance will suffer.
Issuance of Share Certificates
Share Certificates must be issued by the company to its shareholders within 2 months from date of incorporation. It acts as evidence of ownership in the company. The Allocation of Shares and issuance of share certificates is a significant step in
Different types of returns have different due dates for filing GST returns.
Compliance with GST Laws
As a Private Limited Company, maintaining accurate and up-to-date statutory registers is crucial. These registers include: Register of Members, Directors, Director’s Shareholdings, Charges, Transfers, Buy-Back of Securities, and Renewed/Duplicate Share Certificates. They must be kept at the registered office, updated regularly, and available for inspection. Non-compliance may result in penalties, fines, legal issues, and dispute resolution difficulties.
TDS/TCS Return Filing
If your company deducts tax at source (TDS) or collects tax at source (TCS), you must file TDS/TCS returns on a periodic basis. Quarterly filing is mandatory for purposes of the returns and penalties enforce. Maintain compliance in deducting and deposit these taxes as well- timely filing too.
Transfer of Shares
Any requirement to transfer shares during the first year, will have to be in accordance with Companies Act, 2013. This process includes the signing of a share transfer deed, paying stamp duty and updating Register of Members. Appropriate documentation & statutory compliances will help to keep disputes and legal problems at bay.
Transfer of Shares
Though Trademark Registration is optional, It is always better to have your Business Name anf Logo registered. Because, trademark registration provides you the right to use the brand name and also it prevents others from using the same or similar
constituting the ownership structure. This ensures that the share certificates are adequately signed and delivered to members, which will help prevent disputes later.
The First Board Meeting
The first Board Meeting shall be convened within 30 days of incorporation. The company should consider the appointment of the auditor, issue of shares and other statutory needs during a meeting in this regard. This meeting should be documented and kept on file.
Filing of Annual Returns
Every Private Limited Company is required to record the yearly returns with the Registrar of Companies (ROC) within 60 days from the date of Annual General Meeting. The Annual Return contains information regarding the shareholders, directors and financial performance of the firm. Failure to comply with this requirement carries heavy penalties. Financial statements as well to be filed; should not exceed 30 days of the AGM under Company Annual Filing.
Income Tax Law Compliance:
File Income Tax Returns by September 30th of the next financial year, and pay taxes on time to avoid penalties.
Compliance with GST Laws
If applicable, comply with Goods and Services Tax (GST) regulations, including filing GST returns and paying taxes.
named brands and logos. It is an important tool for your business and helps to create brand awareness.
Copyright Registration
If your company develops original content (such as written material, software, or creative works) Copyright Registration is critical. Copyright provides you with the unique ri ht to use, distribute and make reproductions of it. This is especially important as far as protection of your intellectual property goes in order to keep your creations from being used without you giving permission.
Compliance for Startup India Registration
In the case your company falls under those categories specified by Startup India, it is advisable to get registered as a startup. Startup India Registration has its own terms and conditions, leads to tax exemptions in addition easy compliances requirement as well gives access for funding rounds. It provides new businesses with a wonderful opportunity to expand and scale their operation really fast.
