{"id":50785,"date":"2022-11-16T16:52:38","date_gmt":"2022-11-16T11:22:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50785"},"modified":"2022-11-16T16:54:01","modified_gmt":"2022-11-16T11:24:01","slug":"annual-compliance-checklist-for-startups-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-startups-in-india\/","title":{"rendered":"Annual Compliance Checklist for Startups in India- An Overview"},"content":{"rendered":"\n<p>India\nis slowly but steadily becoming the hub of unicorn startups and the startup\nculture has been the bandwagon that everyone has been jumping on. All private\nlimited companies, including startups, running a business are required to carry\nout various regulatory and statutory compliances. As a startup owner, it is\nimperative to be aware of these regulatory and statutory requirements and hence\nfollow an Annual Compliance Checklist for Startups to avoid heavy penalties.\nThese are mostly regulated by the Companies Act, 2013 and various guidelines\nlaid down by RBI, SEBI, FEMA, among others. There are majorly two types of\ncompliances, namely, registrar-based compliances which are also called\nmandatory compliances and non-registrar compliances.<\/p>\n\n\n\n<p>Maintaining and complying with an Annual Compliance Checklist\nfor Startups are extremely imperative steps in running a company or any startup.\nThese checklists are curated depending on whether the Company is a small company\nthat is company with a paid-up capital of Rupees Fifty Lakhs or with an annual\nturnover not exceeding Rupees Two Crore or a private limited company other than\nsmall companies. Compliances involve registrar-based and non-registrar-based\ncompliances. Scroll down to check the Annual Compliance Checklist for Startups<strong>.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Mandatory Compliances\n(Registrar-based) &#8211; Annual Compliance Checklist for Startups<\/h2>\n\n\n\n<p>There are certain\ncompliances which are required to be mandatorily adhered to and requisite\ninformation is submitted to the Registrar of Companies either at the end of\neach year or on the occasion of happening of specific events like, inter alia, changes\nin the Memorandum of Association (MoA) or <strong>Articles\nof Association<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Articles_of_association\"><strong>[1]<\/strong><\/a><\/sup> (AoA) of a company, appointment or change in directors or change in\nshare capital. These compliances are required to be adhered to and notified to\nthe concerned authorities or ROCs within a stipulated time from the happening\nof the specific event.<\/p>\n\n\n\n<ul><li><strong>Appointment of auditor (e-Form ADT-1)<\/strong> &#8211; Section 139 of the Companies Act, 2013. Within 30 days of Company Incorporation, a statutory auditor must be appointed at the board meeting, and other auditors are to be appointed at the Annual General Meeting (AGM) by filing Form ADT-1 within 15 days of the AGM. The auditors are appointed for five years and the appointment must be confirmed by the shareholders at AGM every year.<\/li><\/ul>\n\n\n\n<ul><li><strong>Notice\nof interest by Directors (Form MBP-1)<\/strong> &#8211; Section 184(1), of the Companies Act, 2013. Each Company director is\nrequired to disclose her interests in other entities at the 1st board meeting in\neach Financial Year. A fresh MBP-1 shall be submitted when there is a change in\nthe interests of the Directors.<\/li><\/ul>\n\n\n\n<ul><li><strong>Notice\nof Disqualification by Directors (Form DIR-8)<\/strong>&#8211; Section 164(2) of the Companies Act, 2013. Every Company&#8217;s Diretcor is\nrequired to intimate the existence of any disqualification or non-qualification\nin each financial year.<\/li><\/ul>\n\n\n\n<ul><li><strong>E-Form\nFilings with the Registrar of Companies<\/strong><ul><strong>E-form INC-20A<\/strong>: A declaration as to the initiation of business of\nthe Company must be filed within one-eighty days of the Company&#8217;s\nincorporation.<li><strong>E-form AOC-4:<\/strong> Within thirty days of the AGM being held, financial\nstatements, namely, balance sheet, profit and loss account, directors and\nauditors\u2019 reports, and notice of AGM.<\/li><li><strong>E-form MGT-7:<\/strong> The Company ought to file its annual returns within\nsixty days of the AGM being held for the Financial Year (FY) from 1<sup>st<\/sup>\nApril to 31<sup>st<\/sup> March.<\/li><li><strong>E-form DIR-12<\/strong>: This form regarding the appointment or resignation\nof directors and their consent for the same should be filed within 30 days from\nthe date of such appointment or resignation. &nbsp;<\/li><li><strong>E-form DIR 3KYC<\/strong>: Every director whose DIN has been generated before\n31<sup>st<\/sup> March must complete KYC according to the applicable\nregulations.<\/li><li><strong>E-form DPT-3<\/strong>: The Company ought to file returns which contain\ninformation pertaining to deposits\/receipts of loans other than deposits.<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li><strong>Board\nMeetings<\/strong>&#8211; Section 173 of the\nCompanies Act, 2013. Every Company ought to conduct its first board meeting\nwithin thirty days of incorporation. At least four board meetings must be\nconducted every financial year and the gap between each board meeting must not\nexceed one hundred and twenty days.<\/li><\/ul>\n\n\n\n<ul><li><strong>Annual\nGeneral Meeting (AGM)<\/strong>&#8211; Section\n101 of the Companies Act, 2013. The 1st AGM must be held within 9 months from\nthe end of the 1st Financial Year. Subsequent AGMs must be held every year\nwithin six months from the end of the financial year. There ought not to be a\ngap of more than fifteen months between two AGMs. Notice of AGMs must be sent\nto all Directors, Statutory Auditors and Members.<\/li><\/ul>\n\n\n\n<ul><li><strong>Keeping\nBook of Accounts and Statutory Registers<\/strong>&#8211; Section 88 of the Companies Act, 2013<\/li><\/ul>\n\n\n\n<p><strong><em>Every Company is required to maintain\nand update certain records for the perusal of the Registrar of Companies like:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Statutory Registers- Register of Company, Members, Directors, Key Managerial Persons, Charges, Employee Stock Options, Shares. Share Certificates, Related Party Transactions<\/li><li>Book of accounts and financial statements<\/li><li>Minutes book of general and board meetings<\/li><\/ul>\n\n\n\n<ul><li><strong>Circulation of Financial Statements and relevant documents<\/strong>&#8211; Twenty-one days before the AGM, approved cash flow statement, financial statement, directors\u2019, and auditors\u2019 reports must be sent to the members.<\/li><\/ul>\n\n\n\n<ul><li><strong>Director\u2019s\nReport<\/strong>&#8211; Section 134 of the\nCompanies Act, 2013. Directors of the Company have to submit a report containing\ndisclosures as to the financial status of the Company to the shareholders by\ngiving information as to the operations of the Company and its subsidiaries.<\/li><\/ul>\n\n\n\n<ul><li><strong>Appointment of Company Secretary<\/strong>&#8211; Section 203 of the Companies Act, 2013. Every Company with a paid-up share capital of Rs. 5 Crores\/more ought to appoint a whole-time company secretary.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Non-Registrar-based Compliances\n&#8211; Annual Compliance Checklist for Startups<\/h2>\n\n\n\n<p>Some <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/annual-compliance-of-a-private-limited-company\">annual compliance<\/a><\/strong>\nchecklists for startups are not mandated by the Registrar of Companies but must\nbe adhered to due to other existing rules and regulations. These include:<\/p>\n\n\n\n<ol><li>Periodic dues payments like GST, TCS, TDS, Advance tax<\/li><li>Filing periodic returns like<ul><li>Filing of income tax returns<\/li><li>Filing of tax audit report<\/li><li>Filing of GST returns (annual\/monthly\/quarterly)<\/li><li>Assessment of tax liability <\/li><li>Quarterly TDS returns<\/li><li>Filing of PF returns <\/li><li>Filing of half-yearly ESIC returns<\/li><li>Filing of professional tax returns<\/li><\/ul><\/li><li>Compliance to regulatory requirements as to reporting and assessment under various statutes.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>From a legal and regulatory standpoint, creating and running startups require strict adherence to certain mandatory and non-registrar-based compliances to ensure the smooth running of the business and avoidance of hefty penalties and embargoes on the Company. Maintaining and adhering to the above Annual Compliance Checklist for startups is an imperative step for startups. Entrepreneurs ought to be diligent and mindful of these requirements right from the inception stage of their business.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-checklist-for-private-limited-company\/\">Annual Compliance Checklist for Private Limited Company<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is slowly but steadily becoming the hub of unicorn startups and the startup culture has been the bandwagon that everyone has been jumping on. All private limited companies, including startups, running a business are required to carry out various regulatory and statutory compliances. As a startup owner, it is imperative to be aware of [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":50786,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[415],"tags":[2866],"acf":{"service_id":"250"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":4234,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50785"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50785"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50785\/revisions"}],"predecessor-version":[{"id":50788,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50785\/revisions\/50788"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50786"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}