Post-Incorporation Compliance Checklist for Companies in India

Incorporating a company in India is the first step for foreign companies. Once the company is registered, you’ll need to complete additional legal, financial, tax, and reporting tasks.

Naturally, new businesses concentrate on

• • Hiring employees
  • Finding customers
  • Starting operations

Make sure you don’t overlook early compliance requirements. Failing to do so can lead to penalties, extra costs, and unnecessary legal issues.

To avoid this headache, companies should consider this post-incorporation checklist. It will help you stay organized and compliant after registration. 

In this blog, we will learn about the post-incorporation checklist, which includes

• • Opening a corporate bank account
  • Completing GST registration
  • Maintaining statutory records
  • Filing forms with the Registrar of Companies (ROC)
  • Understanding audit requirements

This checklist is important for foreign companies expanding their business in India and incorporating an Indian subsidiary. Let’s start with our checklist.

There’s much more to it than just incorporating a company. A long list of tasks awaits you. Some have specific deadlines, and others depend on the company’s business operations, structure, and turnover. Let’s understand every requirement one by one.

Opening a Bank Account

Opening a company’s separate bank account is the first step after incorporation. 

This is the account that receives 

• • Business payments
  • Pay suppliers 
  • Process salaries 
  • Manage other operating expenses

To open the account, you must carry documents such as

• • Certificate of Incorporation
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Permanent Account Number (PAN)
  • Tax Deduction and Collection Account Number (TAN), where applicable
  • Board resolution or other bank-required documents
  • KYC documents of directors and authorized signatories

Note that the documents above may vary by bank. Keep your personal bank account and business bank accounts separate. Keep business and personal transactions separate. 

Record everything associated with your business in the company’s accounting records.

Deposit the initial subscription money into your respective bank account as per company law.

GST Registration Requirements

Learn everything about Goods and Services Tax (GST) to help you navigate India’s tax system. GST registration depends on business operations, turnover, and other conditions. 

GST is mandatory for businesses that produce and supply taxable goods and services. In some cases, even if turnover is below the general threshold, businesses must register under specific provisions of GST law.

After GST registration, the company should:

• • Display its GST registration details as required
  • Issue GST-compliant invoices
  • Maintain proper records of sales and purchases
  • Collect GST where applicable
  • File GST returns within the applicable deadlines
  • Reconcile input tax credit records
  • Keep GST-related documents and records properly

The requirement depends on the company’s activities and applicable GST rules. It is also termed zero-rated GST for the employer of record.  

Not necessary that every newly incorporated company automatically requires GST registration. It totally depends on the company’s activities and the GST rules.

ROC Filings and Statutory Compliances

After registration, companies incorporated under the Companies Act of 2013 must comply with several legislative requirements. The Registrar of Companies (ROC) usually handles these formalities.

One of the first requirements is that the corporation has a registered office and keeps essential regulatory records.

The company should be responsible for maintaining records of:

• • Directors
  • Shareholders
  • Share capital
  • Board meetings
  • General meetings
  • Financial statements
  • Related party transactions, where applicable
  • Other statutory registers and records

New businesses should know what may require filing a commencement of business declaration. A business with share capital should normally file a relevant declaration. This has to be done before commencing business or exercising borrowing rights. 

Board meetings and other corporate acts should also be 

• • Fully documented, 
  • Including notices, 
  • Agendas, 
  • Minutes, 
  • Resolutions as necessary

Keeping these records current from the start simplifies future ROC submissions and audits.

Annual ROC filings

Annual ROC filings are essential to ongoing corporate compliance in India.

Companies typically must file their financial statements and annual return with the ROC each year. 

These filings disclose information on: 

• • The company’s financial position
  • Ownership
  • Management
  • Other pertinent information

Common annual filings include:

• • AOC-4 for filing financial statements and related documents
  • MGT-7 for the annual return of companies other than certain specified classes
  • MGT-7A for eligible One Person Companies (OPCs) and small companies

The specific forms and regulations vary by the organization’s nature, size, and applicable rules.

Don’t treat annual filings as a one-time chore. They are ongoing compliance requirements throughout the company’s life.

Late submission can lead to higher fees and regulatory issues for the company and its officers.

Key ROC forms and timelines

For any newly incorporated company, understanding the ROC forms is essential. It will help you plan the compliance calendar. 

Some commonly relevant forms include:

These are some of the most often used forms, not a comprehensive list of all ROC filings. 

The deadline for a certain filing can vary depending on the company’s circumstances and the relevant requirements. Businesses should confirm the current filing requirements before submitting a form.

A compliance calendar can be useful for tracking:

• • Filing deadlines
  • Board meetings
  • Annual general meetings
  • Auditor appointments
  • Tax filings
  • GST returns
  • Other regulatory requirements

Audit Requirements

A statutory auditor helps companies in India to audit their financial statements. If your company falls under the Companies Act, you must meet the appointment and reporting requirements within the given timelines.

The Board must normally appoint the initial auditor of a newly created company within the required term after formation. If the Board fails to make the appointment within the specified time frame, the law may require members to appoint the auditor themselves.

The auditor will issue the audit report after reviewing the company’s financial statements and supporting records. 

Businesses should maintain proper accounting records throughout the year.

This includes records of:

• • Sales and revenue
  • Purchases
  • Expenses
  • Bank transactions
  • Payroll
  • Assets and liabilities
  • Loans and investments
  • Tax transactions

Depending on the company’s activities and circumstances, there may also be 

• • Tax audit
  • GST audit-related
  • Other reporting requirements under applicable laws

Working with qualified accounting and compliance professionals can help companies identify which audit and reporting requirements apply.

Now that we know the list, what if I tell you that you can handle this post-incorporation work without any headache with Remunance? 

Let me explain how Remunance can help you.

How Remunance Can Help With Post-Incorporation Compliance in India

As you can see, the post-incorporation checklist a foreign company must complete can seem daunting. This usually happens when you’re not aware of the local rules, filing requirements,  and documentation. That’s where you need Remunance. 

Remunance can be your savior in managing India operations that include: 

• • Payroll
  • Compliance
  • Employee onboarding 
  • HR administration
  • Statutory requirements

Remunance helps with local compliance processes so you can focus on your core functions. 

For businesses hiring employees in India, Remunance can help with:

• • Payroll management: Managing monthly payroll and applicable statutory deductions such as EPF, ESI, Professional Tax, and TDS.
  • Labour law compliance: Helping businesses understand and follow applicable Indian employment and labour regulations.
  • Employee onboarding: Managing employment documentation, offer and assignment letters, onboarding processes, and employee records.
  • Statutory compliance: Supporting businesses with recurring compliance requirements related to their employees and operations.
  • HR administration: Handling routine HR processes so the overseas management team does not have to manage every local requirement.
  • Local support: Providing businesses with a local team that understands India’s employment and compliance environment.

Remunance can also help companies hire and manage employees in India through its Employer of Record (EOR) services, without setting up their own Indian entity.

This can be a practical option for businesses that want to enter the Indian market, test the market, or build an initial team before making a larger investment in a local entity.

Remunance can also be a strong partner for hiring and managing employees in India. You can build a team in India without a legal entity by using employer of record services. 

This is the best option for businesses that want to enter or explore the Indian market. Before making a larger investment, you should partner with Remunance to get a seamless employer of record experience.

Conclusion

Incorporating a company in India is only the first step toward starting business operations. The next stage involves completing several 

As mentioned before, incorporation is the first step towards building business operations. After this step, you will be introduced to several obstacles or requirements, such as, 

• • Legal requirements
  • Tax requirements
  • Financial requirements
  • Reporting requirements

A proper post-incorporation India checklist can help businesses stay on track. 

This process includes 

• • Opening a company bank account
  • Checking GST requirements
  • Maintaining statutory records
  • Completing ROC filings 
  • Understanding audit obligations

Foreign companies may face obstacles, especially if they are unfamiliar with India’s regulatory system. Local consultants help you understand requirements and keep records and filings accurate.

Companies should start compliance work early, before deadlines arrive. Ensure a well-planned compliance schedule to avoid missed filings, penalties, and operational delays. Do this while building a strong foundation for the business in India.