The short version
- Hold the first Board of Directors meeting within 30 days of the incorporation date.
- Appoint the first statutory auditor via Form ADT-1 within 30 days of incorporation.
- Subscribers must deposit share capital from their personal bank accounts into the company's current account before filing INC-20A.
- Issue stamped physical or demat share certificates to subscribers within 60 days of incorporation.
Week 1: First Board Meeting and Banking Setup
Under Section 173(1) of the Companies Act, 2013, every newly incorporated company must hold its first Board of Directors meeting within 30 days of the date on the Certificate of Incorporation.
In this meeting, the board formally adopts the common seal (if any), approves the opening of a bank current account, authorises signatories, and notes the company's registered office. The company current account requires the CIN, Certificate of Incorporation, PAN, TAN, MoA & AoA, and a certified copy of the board resolution.
Week 2: Appointing the Statutory Auditor (Form ADT-1)
Under Section 139(6), the Board of Directors must appoint the company's first statutory auditor (a practising Chartered Accountant or firm) within 30 days of registration.
If the board fails to appoint the auditor within 30 days, it must inform the shareholders, who must convene an Extraordinary General Meeting (EGM) within 90 days to appoint the auditor. While ADT-1 is technically optional for first auditors in certain MCA circular interpretations, filing Form ADT-1 within 30 days creates an immutable ROC record and avoids disputes during subsequent annual filings.
Week 3-4: Share Capital Deposit and Stamp Duty on Certificates
Every subscriber named in the Memorandum of Association (MoA) must deposit their agreed subscription amount into the new company current account. A critical compliance rule: this money must be transferred directly from the subscriber's individual bank account, not in cash or from third-party accounts.
Within 60 days of incorporation under Section 56(4), the company must issue Share Certificates (Form SH-1) to every subscriber. In states like Maharashtra, Delhi, Karnataka, and Tamil Nadu, share certificates must be stamped within 30 days of issuance under the relevant state Stamp Act.
Filing Form INC-20A (Commencement of Business)
Under Section 10A of the Companies Act, no company with share capital can begin business operations or exercise borrowing powers until the directors file Form INC-20A with the Registrar of Companies within 180 days of incorporation.
The mandatory attachment to Form INC-20A is the bank statement showing credit of the subscription money paid by each promoter, along with photographic proof of the registered office showing external signboards. Missing INC-20A attracts a ₹50,000 fine for the company and ₹1,000 per day for directors, and empowers the ROC to initiate strike-off proceedings.
This guide is general information, not legal or tax advice. Rules and fees change often, so check with an advisor before you file anything.