Just Incorporated your company in India? What Next?
Post 'company Incorporation' Activities.
Once a company is incorporated in India, there are a set of compliance which must be completed to remain compliant as per the applicable laws mainly The Taxation laws, The Companies Act and FEMA.
We have divided the activities in three major heads
Obtaining necessary Licenses
Corporate Secretarial Compliance
Obtaining necessary Licenses (Once in lifetime after company is incorporated)
i. GST Registration : Registration under Goods and Service Tax (GST) is Voluntary up to Turnover of Rs. 40 Lakhs, or 20 Lakhs or 10 Lakhs as per case maybe. It is Mandatory for Export and Interstate sales. To avail set off of GST paid on CAPEX or OPEX, it is necessary for one to get it registered voluntarily and save the cost.
ii. Import Export Code : IEC Registration is Mandatory for Import/Export of goods and services.
iii. GST LUT Registration : It is necessary to get GST tax benefits for Export of goods/services
IV. Other applicable licences: Depending upon structure of business, number of employees, location of the business, certain licences/registrations need to be obtained.
iv. Licence under Direct Tax : Most of them are obtained at the alongwith incorporation, so need to get this done separately.
Trademark Registration (To protect its own identity and not to be used by others)
i. Trademark(TM) Application for Registration of Brand Name and Logo in India.
This will help to protect the name or design or logo of the company.
ii. India registration is must.
After India registration, company can apply for trade mark in any geographies of the world.
Corporate Secretarial Compliance (For smooth operations and regulatory requirements)
i. Opening of Bank Account
It is very essential to identify your bankers, some of them offers automation and ease to operate. So get your business account opened with any bank you prefer in the name of company.
ii. Deposit of Share Capital Amount
The amount of share capital committed by owners should be deposited into the company's bank account. These money can be later used for any Opex and Capex requirement of the company. If the amount are coming in Foreign Exchange, then additional procedure under Exchange Regulations need to be followed.
iii. Allotment of Shares against funds (within 30 days of deposit of money)
and Issuance of Share Certificates (within 60 days of Incorporation)
Issuance of share certificate with necessary stamp duty. This essentially give proof of ownership in the business.
Shares certificates shall be allotted to shareholders in Physical or Demat form.
iv. Reporting of Fund received by newly formed Company with Reserve Bank of India (RBI) in Form FC-GPR (within 30 days of allotment)
This is for intimating RBI about foreign ownership of Indian assets in form shares of an Indian company. This is only applicable if the owners are foreign company or non-resident.
v. Appointment of Statutory Auditor & Related filings (within 30 days of Incorporation)
The Board of Directors shall appoint a Chartered Accountant as first Auditor of the company. The first Auditor will hold office until the completion of the first AGM (Annual General Meeting), and would be eligible for reappointment.
vi. Holding of Board Meeting and Preparation of Necessary Documents (within 30 days of Incorporation): As the board is formed, the first meeting will set the path as to how the affaris of the business will be conducted and who will be authorised signatory on behalf of the company for any various purpose.
vii. Obtaining Certificate of Commencement of Business (within 180 days of Incorporation). Sometimes the business is formed but waiting for the first order or have some gestation period. You can complete the above procedures laid down in i to vi to kick start the commercial activities.
viii. Books of Accounts
The company shall maintain books of accounts on double entry system and accrual basis to give fair view of state of affairs of the company. It can be maintained at registered office or any other place which need to be informed to the regulators
ix. Miscellaneous :
The Company's letterhead, common seal and other stationery to be finalised which need to be used for entering any contracts.
x. Get employees/contractors on board:
Follow a standard process to on-board your employees with necessary ease of operations for payroll and other labour laws compliance.