Chapter 4
Post-Incorporation Compliance
The first 180 days
Incorporation is the start, not the finish. Several time-bound compliances follow, and missing them attracts penalties or even strike-off.
Commencement of business
A company with share capital must file INC-20A (declaration of commencement of business) within 180 days of incorporation, confirming subscribers have paid for their shares. The company cannot borrow or commence business until this is filed.
Early statutory steps
Within 30 days, hold the first board meeting; appoint the first auditor within 30 days (by the board) or 90 days (by members). Open a bank account, deposit subscription money, and issue share certificates within 60 days of incorporation.
Registers and records
Maintain statutory registers (members, directors, charges), minute books, and the registered-office signage and stationery showing the company name and CIN. Good housekeeping here prevents compounding problems at the first annual filing.
🃏 Flashcards
INC-20A
Tap to flipDeclaration of commencement of business, due within 180 days.
📋 Case Study
📝 Test yourself
Post-Incorporation Quiz
1 / 5INC-20A must be filed within ___ of incorporation:
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