Company Law Compliance Checklist for Startups in India

Introduction –

Miss a filing, risk a fine. Master the checklist, own the future.

The Company Law Compliance Checklist for startups in India is primarily governed by the Companies Act, 2013. According to the Companies Act and related business statutes, there are typically three primary structures, namely:

i.                 Private Limited Company: The definition of a private limited company is provided under section 2(68) of the Companies Act, 2013, it is the most significant and popular structure for startups in India. it is a privately owned business, a non-governmental form of organization and it provide limited liability protection that must be a registered under the Companies Act, 2013.

ii.               One Person Company: A One Person Company is defined under section 2(62) of this act, which allows only a single individual to be the sole shareholder and director of the company that individuals who want to run a company on their own, providing limited liability protection of a formal company. Registration is mandatory for a One Person Company under the Companies Act, 2013.

iii.             Limited Liability Partnership: A Limited Liability Partnership is primarily governed by the Limited Liability Partnership Act, 2008, it is the most significant and popular structure for entrepreneurs in India. It is a flexible business structure that facilitates the easy operation of the company while providing limited liability protection like that of a corporation.

Within the First 180 Days of Post –

Incorporation - Under company law, there are rules that corporations must maintain and obey. Newly incorporated companies must file a declaration with share capital for the commencement of business within the first 180 days of incorporation.

There are important duties for the directors of the corporation; the director must file form INC-20A for the declaration of commencement. Failure to file this declaration within 180 days may lead to heavy penalties and potential removal of the company's name from the ROC.

Under the Companies Act, 2013, some statutory deadlines are mentioned for the corporation. These are:

• First Board Meeting: Must be held within 30 days of incorporation to appoint officers and establish internal governance.

• First Auditor Appointment: The Auditor must be appointed by the Board of Directors within 30 days of incorporation.

• Certificates of Shares with the Subscribers: Every company must issue certificates to the subscribers of its MOA within 60 days of incorporation.

• Annual General Meeting: The Annual General Meeting must be held every calendar year within 6 months from the end of the financial year.

The Registration Process of a Company for Startups in India –

• First of all, a digital signature certificate is necessary for all the directors and subscribers to sign documents digitally, and a director identification number is also required.

• Secondly, submit the name preference, which should be a unique name with business activity codes. Twenty days are reserved for the approval of the name.

• Thirdly, file the main incorporation form detailing capital, registered office address, data of the directors or shareholders, and submit the statutory declarations.

• Fourthly, file the foundational documents of the company, including the Memorandum of Association, which must outline the external scope, purpose of the company, relations with the shareholders, creditors, and the public, and also mention the limits of what the company can do. File the Articles of Association that delineate the internal details of the company such as management rules, bylaws, and day-to-day operations.

• Lastly, the required government and ROC fees must be paid. The ROC checks or scrutinizes the application and issues the certificate of incorporation.

FAQs

Build fast, File faster.

1.After a startup firm is incorporated in India, what is the first compliance?

A: Within 180 days, submit Form INC-20A for Commencement of Business.

2.How frequently must a startup’s board meet?

A: A minimum of four board meetings every yea, separated by no more than 120 days.

3. When is the AOC-4 filing deadline?

   Within 30 days of the AGM. 

4.Is appointing an auditor mandatory for startups?

   Yes, first auditor within 30 days of incorporation via ADT-1. 

5. Do startups need to maintain statutory registers? 

   Yes, startups need to maintain statutory Register of Members, Directors, Charges, etc. 

6.Is AGM compulsory for a Private Limited startup?  

Yes, AGM must be held within 6 months from FY end. 

How can OLQ Law Firm help?

·       Startup Compliance Retainer.

·       Annual ROC Filings.

·       Board & AGM Support.

·       Event Based Filings.

·       Director Compliance.

·       Incorporation Compliance.

Contact OLQ Law Firm for trusted legal assistance in Compliance Checklist for Startups in India.

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Call/WhatsApp: 89819 49111

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