Compliances for Newly Incorporated Companies (FY 2026–27)

Starting a new company is an exciting milestone, but it also comes with a set of mandatory legal and statutory compliances. Companies incorporated in FY 2026–27 must adhere to the provisions of the Companies Act, 2013 to ensure smooth operations and avoid penalties.

This article outlines the key compliance requirements that every newly incorporated company should be aware of.

🔹 1. Key Initial Compliances (Timeline-Based)

✅ ADT-1 – Appointment of First Auditor

Every company must appoint its first auditor within 30 days of incorporation.

• The Board of Directors is responsible for the appointment
• The auditor will hold office till the conclusion of the first AGM
• Filing ADT-1 ensures formal intimation to ROC

✅ INC-20A – Declaration for Commencement of Business

This is a mandatory compliance for companies incorporated on or after 1st April 2026.

• Must be filed within 180 days of incorporation
• Acts as a declaration that subscribers have paid share capital
• Mandatory before starting business operations or borrowing

🔹 2. Mandatory Disclosure Requirements

From the date of incorporation, companies must ensure proper disclosure on all official documents.

📄 Where disclosures are required:

• Business letters
• Billheads and invoices
• Notices and official publications

🏢 Registered Office Requirements:

• Company name board must be displayed

📌 Particulars to be mentioned:

• Company Name
• Corporate Identification Number (CIN)
• Registered Office Address
• Official Email ID
• Website (if any)
• Contact Number

🔹 3. Additional Compliance Insights

⚠️ Penalty for Non-Filing of INC-20A

Failure to file within the prescribed time may result in:

• Penalty of ₹50,000 on the company
• ₹1,000 per day on officers (maximum ₹1,00,000)

🚫 Restriction on Borrowing Powers

A company cannot start borrowing unless INC-20A is filed.

• It is a pre-condition for financial activities
• Non-compliance restricts business expansion

⚖️ Strike Off Risk (Section 248)

If INC-20A is not filed within 180 days:

• ROC may initiate action for removal of company name
• May lead to strike off, impacting business continuity

🔹 4. Important Clarifications

• Legal deadline: 180 days
• Best practice: Early filing is strongly advisable to avoid risks

🔹 5. Applicability

INC-20A provisions are not applicable to:

• Companies incorporated before 2nd November 2018
• Companies limited by guarantee without share capital

🏁 Conclusion

Timely compliance is not just a legal requirement but a foundation for building a credible and sustainable business. Non-compliance can lead to penalties, operational restrictions, and even strike-off.

Newly incorporated companies should prioritize these initial filings to ensure a smooth start and avoid unnecessary legal complications.