W E H E L P S T A R T U P T O S T A R T

Friends, starting a business is like climbing the first step; the real game is in moving it
forward. It's just like building a house – starting it is one thing, but sustaining and
managing it is another. The registration of the business is all we know before we start
our business, but there are very few people who know the necessary steps to keep your
company successful and active after registration. Today, we will discuss essential aspects
that you must consider to keep your company not only thriving but also resilient and
adaptable for the future.
After company registration, there are certain tasks that need to be performed, and
neglecting them could be detrimental to your business. The first crucial step is to
establish the right policies and procedures for your business. These policies not only aid
in the growth of your business but also safeguard it from potential legal issues in the
future. Here, a significant saying should be kept in mind – 'Prevention is better than
cure.' In legal terms, “Ignorance of law is no excuse”. Therefore, it is essential for the
directors and members of the company to be aware of the legal compliance regarding
the company's policies because non-compliance can lead to penalties.
There is a saying, “Finish tomorrow’s tasks today and today’s tasks right now”. This
advice is applicable not only to personal matters but also to running a business and
securing its future. Hence, it is advisable to start taking these necessary steps from today
itself to ensure the security and success of your business. This way, you will not only be
able to build your business but also protect it from future challenges. So, let's start
taking steps in this direction from today and take our business to new heights.
 INDEX
Company registration is just a beginning; the real game is about to begin now.

Bank Account Opening

and deposit Paid-up
capital

Conduct First Board Meeting

& Appointment

Issuing share
certificates

Commencement of
Business

Office Setup and

Stationery

Statutory Register
Maintenance

Setup a accounting
System

Prepare Compliance
Calendar

Prepare for customer

acquisition

Establish a Procedure for

Employee-Related
Activities

How to Manage Provident Fund

(PF) & Employee State Insurance
(ESI) registration
 BANK ACCOUNT OPENING AND DEPOSIT
PAID-UP CAPITAL
Opening an account and depositing funds into it is easy, but managing and
spending those funds is the real challenge.
When you establish a new company, there are several processes and steps that need to
be followed. One of the essential steps is to open a bank account and deposit paid-up
capital into it. Firstly, opening a bank account is a significant step for creating medium
of financial transactions and correspondingly providing a formal platform for financial
dealings. To open an account, documents such as the company's registration proofs
and address proof of directors, and other relevant documents are necessary. Once the
account is opened, it is time to deposit paid-up capital. Paid-up capital is the amount
paid by shareholders in exchange for shares issued by the company. This amount
demonstrates the financial stability of the company and is essential for the initial
operations of the business. Depositing this capital requires shareholders to transfer the
agreed-upon amount into the company's bank account. Executing this procedure
accurately and promptly is vital, as it indicates the legal and financial credibility of the
company. Moreover, this undertaking demonstrates the company's dedication and
transparency to investors and other stakeholders.
Selecting a Trusted Banking Partner: Select a bank that aligns well with your business
requirements. Ensure it comprehends the specific needs of your enterprise and prioritizes the
quality and diversity of its banking services. A good bank should feature an effective customer
support infrastructure. In the contemporary digital era, it is crucial to verify whether the bank
provides online banking, mobile banking, and other related facilities.

Essential Documentation to Open a Company Account: In the mandatory paperwork, ensure

the inclusion of the company registration certificate, Memorandum of Association, Articles of
Association, particulars of directors along with their identification documents, and
confirmation of the company's address. Additionally, board resolutions and information about
authorized signatories is imperative, as it certifies which individuals the company's board has
authorized to open and operate bank accounts.

Steps to Deposit Paid-up Capital in Company Account: The paid-up capital refers to the
amount that shareholders invest in the company. It's important to emphasize that deposit
should be conducted in accordance with their subscribed shares, as stipulated in the MOA and
AOA.

Utilization of Paid-up Capital: The first step is to begin business operations by acquiring raw
materials, machinery, and office supplies. The second step involves marketing and branding,
ensuring that the company's products reach a wide audience. The third step involves
managing daily expenses, such as salaries and electricity bills, in a systematic manner to
maintain financial stability in the working capital.
 ISSUING SHARE CERTIFICATE
Issuing a share certificate is not merely a paperwork formality; it is an indication
of trust.
Issuing a share certificate is an important step for a new company. It confirms who
owns shares in the company, giving investors proof of their investment. This process is
more than just a formality—it also shows that the company's capital is legitimate.
When a new company is set up, the share certificate includes details like the names
and addresses of shareholders, the number of shares they have, and the value of those
shares. Following the necessary steps and rules is crucial during this process to make
sure the company follows all instructions. Keeping records, such as the date of issuance
and certificate number, adds transparency to the company's financial information. This
not only assures investors of their role in the company but also protects the company's
financial integrity.

Share Certificates: Share certificates are a type of document that serves as a pledge of
investment in a company. They not only represent the stake in an investment but also
demonstrate how much faith an individual has in the company's gains and losses.
These certificates serve as a bridge between a company and its investors. On this
certificate, there is some key information, such as the company's name, the number of
issued shares, and a unique serial number that distinguishes each certificate.

Procedure for Issuing Share Certificates: The company decides how many shares to
issue in the first board meeting. Once decided, they prepare and issue share certificates
with details like company name, shareholder's name, share quantity, and certificate
number. The company's records are then updated with this information, following
financial and legal rules.

Consequences and Penalties for Non-compliance: When a company is formed, those

who subscribe to its memorandum and intend to purchase shares must deposit the
share application money within two months of the company's incorporation. If this
does not occur, the company may, in accordance with Section 42 of the Companies Act,
2013, impose a penalty of fifty thousand rupees on the company and its promoters
collectively.

Role of Share Certificates in Share Transfers: This document is a valid proof issued in
the shareholder's name, detailing the number of shares, issuance date, and
shareholder's name. It eases the transfer of fictitious shares, with the current
shareholder mentioning the new owner's name behind the scenes.
 COMMENCEMENT OF BUSINESS
It is time to transform dreams into reality because the commencement of every
great journey begins with a dream.

According to the Indian Companies Act of 2013, when a new company starts, it has to
officially begin its business within a certain time frame. This important step is known as
the 'Commencement of Business.' The company needs to inform the government
about this by filing a specific form within 180 days of its establishment. This form
confirms that the company has enough money and is ready to carry out its business
plans. This process is not just a formality; it ensures transparency with the government
and shows that the company is following the rules. If a company doesn't complete this
step, it can't legally start its business, and there could be penalties or other legal issues.
So, the 'Commencement of Business' is crucial for a new company, not only as a
formality but as a significant step in establishing itself in the market.

Understanding the Commencement of Business: As per the Companies Act,

'Commencement of Business' means starting operations after the company is formed.
To get approval from the Ministry of Corporate Affairs, the company must meet certain
requirements, like informing shareholders and depositing funds in the company's bank
account.

Procedure for Submitting Form 20-A: The company gets the 'Certificate of
Commencement of Business' by filling out Form 20A with the government. This form
needs certification from a practicing professional. Every company has to file this form
within 180 days of formation, including details about the money invested and the
registered office address.

Penalties for Non-Filing of Form 20-A: Not filing Form 20A on time leads to serious
penalties, which are imposed with the purpose of reducing the number of fake
companies. The company can be fined up to INR 50,000, with additional daily fines for
each director, up to INR 1,00,000.

Late Fees for Non-Filing of Form 20-A: Filing Form 20A late means paying extra fees.
The fees double for up to 30 days, quadruple for up to 60 days, and so on. If the form
isn't filed within 365 days, the company's registration can be canceled, with a penalty of
up to INR 1 lakh and a small fee for companies with a low capital.
 OFFICE SETUP AND STATIONERY
This isn't just an office; it's where our dreams reside. Every file, every pen is a
part of our dreams.
Opening a new company is more than just a significant undertaking; it involves
choosing the right office space and setting up stationery. It's more than just a building;
it's like nurturing a child, providing the right environment for growth and fostering a
culture of creativity and productivity. Let's talk about choosing the right office location.
It's not just about productivity; it's about creating a comfortable and pleasant work
environment. The office should have well-designed furniture, a functional workspace,
and a pleasing color palette to create the right atmosphere.
When it comes to stationery, it's not just about supplies; it's about the backbone of the
company. High-quality paper, pens, files, folders, and other essentials contribute to
workplace efficiency. Even in today's digital age, having computers, printers, and
stationery is still necessary.

Choosing the Right Address: If your business involves a constant arrival of customers,
then a centrally located space is preferable. For online business, having a quiet space is
advisable. A posh area is suitable for high-class clients, while a market area is more
suitable for the general public. Transportation and parking facilities are also essential for
the convenience of both customers and employees.

Changing Business Address: When necessary, changing the registered office address
of any company within the limits of the same city, village, or town is a straightforward
process. For this, the company needs to conduct a board meeting, and a resolution
must be passed. Within 15 days of the resolution, it is required to submit Form INC-22
with the Registrar of Companies (ROC).

Virtual Office Option: A virtual office space can be an excellent solution for saving costs
and providing flexibility for new businesses. It offers professional business address
services, meeting rooms, and mail handling. This not only contributes to business
scalability and legal registration but also facilitates the ease of professional interactions.
However, if a business involves regular physical presence or the production of physical
goods, a virtual office may not be as suitable.

Office Stationery Printing: If you've opened a new company, put some thought into
office stationery. Design file folders in a way that captivates the viewer's eyes. Envelopes
should have a touch that evokes admiration as soon as they are opened. And as for
business cards, they should be nothing short of extraordinary, leaving a lasting
impression the moment they are held.
 STATUTORY REGISTER MAINTENANCE
Keeping accurate records is the first step towards successful business
management.
Ensuring the proper upkeep of legal registrations is not only necessary but also requires a considerable
level of understanding. Directors of a company need to grasp the significance of creating and managing
various registrations, including shares, director details, key managerial personnel, accounts, loans, and
more. These registrations aren't just paperwork; they act as a record-keeping system, demonstrating
the company's adherence to financial and regulatory standards. Regularly updating and reviewing
these registrations is crucial to ensure compliance with evolving laws and regulations, especially in
India, where financial and corporate rules often change. Managing these registrations with care and
dedication becomes essential to uphold financial integrity. Despite the changing nature of regulations,
consistent and committed financial management is necessary to keep registrations up-to-date. Failing
to maintain accurate and up-to-date records can expose a company to legal complexities and financial
penalties. Therefore, companies must responsibly manage legal registrations to comply with ever-
changing laws and financial standards.

Register of Shareholders, Directors, and Key Managerial Personnel: The number of shares held by
various individuals in a company, along with the type of shares and the respective ownership
percentage, is disclosed in the register of shareholders. Furthermore, details such as the names,
addresses, professions, and tenure of service of all directors are documented. This means that
comprehensive information about key executives, including the managing director, executive officers,
and company secretary, is recorded in the registrar. The registrar also reveals information about top
management, such as the company's legal representative, financial controller, and company secretary.

Registry of Loans, Charges, Deposits & Investments: In this register, the funds raised (loans), the
associated costs (such as interest if retained), are documented. It also outlines how the company
obtained funds, the amount borrowed, the repayment schedule, the interest rate applied, and any
outstanding amounts. Similarly, information about deposited funds is also included, detailing how
much money was deposited, the interest it will earn, and the duration until the funds will be withdrawn.
Investment-related details are also part of this information, specifying where the company has invested
its funds and the anticipated benefits from those investments.

Recording Related Party Transactions: When a company initiates its business operations, it often
engages with entities or individuals that can potentially influence its decisions. These entities are
referred to as 'related parties.' This category may include key executives, directors, their family members,
or business partners associated with the company, with whom the company conducts transactions.
Now, all the transactions that take place between these related parties need to be meticulously
documented. The complete details of these transactions are recorded in a register. This register
contains information about the nature of the transactions, the financial amounts involved, the terms
and conditions, and the specifics of when the transactions occurred.

Minutes of Meetings and Resolutions: Keeping a record of the discussions and decisions made during
company meetings is essential, known as 'Meeting Minutes.' It includes everything discussed in the
meeting - who attended, what resolutions were proposed, and what discussions took place. 'Board and
Shareholders' resolutions are decisions made by the company's directors or individuals who have
invested in the company. These resolutions, such as how the company will operate and where funds will
be allocated, are decided collectively. Whether to invest in another company or not is also part of these
resolutions. All decisions of the company, including resolutions, should be documented in writing.
 SETUP A ACCOUNTING SYSTEM
Financial discipline and accuracy in accounting can propel your business to new
heights.
After the establishment of a new company, implementing at least a fundamental accounting
system is a vital step. Without an adequate accounting system, accurately completing
regulatory compliances becomes extremely challenging. For this, either self-maintenance or
seeking assistance from a part-time accountant is necessary, creating a clear ledger where all
financial transactions can be recorded. This includes income, expenses, assets, liabilities, and
maintaining a cash book to track cash transactions. Additionally, it is essential to manage
invoices and receipts to accurately document financial transactions. Keeping vouchers and
receipts organized also proves extremely vital, as they serve as tangible evidence for your
financial transactions. If manual accounting is not preferred, various accounting software
available in the market can be an alternative solution. This software not only makes recording
transactions easier but also provides different reports and analyses, aiding in financial
management. A good accounting system helps in the timely filing of GST returns and other
financial statements with accuracy and efficiency.

Cash Book: Every day, there is a routine of cash transactions in your business. Each rupee is
accounted for in this process, such as when someone gives you money or when you give
money to someone. All these transactions are recorded in it. This helps in understanding the
cash flow in the business. It provides insight into how cash is received and disbursed, whether
someone has given you money or you have given money to someone. This is a fundamental
method of comprehending cash flow in business.

Ledgers: An account in the financial domain functions like a ledger where various types of
accounts are maintained. If there is a negative balance in any financial transaction, it is offset
by another account. It is through these ledgers that a company determines whom to pay and
from whom to receive. At the end of the financial year, a summary is prepared, which includes
the income statement, balance sheet, and profit and loss account.

Sales & Purchase Ledger: In simple terms, this is an account where complete record of
everything sold (sales) and bought (purchase) by your company is maintained. Here, detailed
information about each sale and purchase is recorded regularly, such as how much goods
were sold to a customer or how much inventory was purchased from a supplier. In order to
provide accurate information for GST filings and GST return forms, all transactions are
documented systematically.

Bank Statements & Vouchers Records: The company carefully checks all the money going in
and out of its bank accounts. It's important to review and explain these transactions every
month and organize them for the entire financial year. Receipts, like those for purchases, etc.
are proof for every expense, helping to manage finances effectively.
 PREPARE COMPLIANCE CALENDAR
The need for a Compliance calendar is not only a legal requirement but also a
matter of practical wisdom.
The formation of a new company involves various compliance requirements, and several types
of statutory filings and obligations (such as ROC filings, GST filings, income tax and TDS filings,
and professional tax filings) need to be initiated. Speaking of ROC (Registrar of Companies)
filings, it is a process through which a company registers with the ROC and maintains its
compliance through regular updates. It includes the company's annual returns, financial
information, directors' records, and shareholders' details, among other things.GST, or Goods
and Services Tax, is an indirect tax on goods and services. Under this, companies need to file
their transactions regularly and ensure the timely submission of the required files to avoid
penalties. Income tax and TDS compliance are also essential. This involves paying taxes on the
declared income, deducting TDS, and providing the necessary information to the government.
Professional tax, applicable in certain states, is a tax levied on businesses and professionals. Its
rules and rates vary from state to state. All these compliances may seem overwhelming for a
new company. Fulfilling these obligations in a timely and correct manner is not only beneficial
for meeting legal requirements but also enhances the organization's transparency and
financial credibility. It is imperative to maintain a well-organized calendar to fulfill all these
obligations on time and in the right manner. This not only aids the company in non-monetary
aspects of compliance but also ensures organizational transparency and financial prudence.

ROC Compliances: Every company is required to submit certain financial disclosures and
statements to the Registrar of Companies (ROC) annually. These include details such as the
company's earnings, expenditures, stakeholders, and shareholding information. This process
allows the government to assess whether the company is operating correctly. If these
disclosures are not provided in a timely manner, the company may face penalties.
GST Compliances: Goods and Services Tax (GST) is a tax levied on the supply of goods and
services that exceeds a specified amount, earned by an individual or entity. Every person or
entity whose income exceeds a certain predetermined threshold is required to file a GST
return. This involves providing information about the services or goods sold by you, which are
subject to the applicable GST rate. Additionally, you must also disclose the GST information on
the services or items purchased by you that have incurred GST. Along with this, you are
obligated to furnish details about the GST paid on the specified goods and services at the rates
provided.
Income Tax Compliances: Whenever a company operates, it needs to pay taxes to the
government. These taxes support the company's financial stability. So, following income tax
rules means keeping track of the company's earnings, filing tax returns, and depositing TDS
(tax deducted at source) during payments to employees or vendors. It's about maintaining
accurate records, filing returns on time, and providing necessary documents to the tax
authorities.
Professional Tax Compliances: Professional tax is a state-level tax on professionals who earn income,
such as doctors, lawyers, and architects. Now, if your company operates in a state and its professionals
earn a specified income (which varies in each state), you also need to pay this tax. The amount of
professional tax and the deadline for depositing it differ in each state. Applicable states include
Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam,
Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, Jharkhand, Sikkim, and Mizoram.
 ESTABLISH A PROCEDURE FOR EMPLOYEE-
RELATED ACTIVITIES
Ensuring employee well-being is the foundation of the long-term success of the
company.
Creating a new culture in the organization is crucial for implementing a fresh approach.
Firstly, a welcoming orientation should be developed to instill the idea that new work
practices are integral to the company. This involves essential training sessions, team
building exercises, and mentoring programs. Next, teaching them new skills is essential
for effective performance. Here, the fusion of technology and teamwork plays a vital
role. Digital learning platforms become essential in this context. Employee well-being is
also paramount; hence, safety measures, health programs, and regular feedback are
necessary. Evaluating their contributions and providing constructive feedback boosts
their self-esteem, enhancing their overall performance. Finally, maintaining an open
communication channel fosters understanding among team members, promoting the
company's culture and creating a transparent work environment. By adopting these
steps, a new company can not only build a robust team but also cultivate a resilient
culture, embodying values and inspiration.

Define the Recruitment Process: First, it is essential to think about the type of people
your company needs. Then, advertise for them, collect their applications, call them for
interviews, and finally, select the best among them. Setting up this process correctly
ensures that the right candidates come to your company, and your business will thrive.
Therefore, the recruitment process must be clear and organized so that the selection of
the right candidate can be made without any errors.
Creation of Training Materials: You need to prepare resources and guidance that
educate newly joined employees about their jobs. This includes everything such as how
the company operates, what their roles are, and what are the expectations from them.
These training materials may include videos, manuals, and guidebooks. These materials
are essential so that new individuals quickly assimilate into the company's environment
and start working efficiently.
Develop Job Profiles, Key Performance Indicators (KPIs), and Key Result Areas
(KRAs): Creating a clear job profile is important, outlining the job responsibilities and
qualifications needed. Key Performance Indicators (KPIs) show how the employee's
performance will be measured, indicating how their work will be evaluated. Key Result
Areas (KRAs) specify the crucial areas where the employee should excel to consistently
demonstrate outstanding performance.
Formulating Employee Policies: Every company has specific rules and guidelines for
office staff and workers. This includes the organization of the office team, instructions
on taking breaks, implementing code of conduct, and following protocols during tasks.
Creating these policies ensures that every employee knows the goals of remote work
and adheres to them while performing their duties.
 HOW TO MANAGE PROVIDENT FUND (PF) &
EMPLOYEE STATE INSURANCE (ESI)
REGISTRATION
A successful company is one that prioritizes the safety and future of its employees
Provident Fund (PF) and Employee State Insurance (ESI) are its key foundations.
To begin with, for Provident Fund (PF), employers need to ensure timely and accurate
payroll processes, depositing the correct amount into employees' PF accounts.
Employees should also regularly check their PF accounts. Similarly, for Employee State
Insurance (ESI), employers should facilitate stress registration for eligible employees
and deposit a portion of their salary into the ESI account. Employees should be aware of
ESI facilities and undergo periodic checks for compliance. Both employers and
employees should stay updated on new rules.Using online portals can streamline the
process, and regular audits can correct errors. Integrating PF and ESI effectively
benefits both employers and employees, providing timely information, accurate
records, and utilizing resources for benefits.

If PF not Required: If the PF registration has been attained during the company's
incorporation, the PF contribution does not need to be deposited until the employee's
salary reaches the limit of 20,000. If final settlement needs to be done before reaching
the 20,000 limits, it can be done with the consent of the employee and the EPFO.
However, once the employee's salary exceeds 20,000, the EPFO may take necessary
action for non-deposit of PF.

If ESI not Required: If ESI registration has been obtained during the company's
incorporation, and ESI returns have not been filed for the past 6 months, it is mandatory
to file the grace period filing within 15 days of the end of the grace period. If ESI returns
are still not filed at the end of the grace period, you can file another grace period for an
additional 6 months. However, failure to submit the grace period form may result in
blocking the ESI portal for return filing, and it is mandatory to submit the ESI return to
avoid such consequences.

PF Compliances: If your company has 20 or more employees, it is essential to take care

of their Provident Fund (PF). For employees whose basic salary exceeds ₹15,000, a
deduction is made for PF, in which both the employee and the company contribute 12%
of the basic salary. PF challans are deposited by the 15th of each month, and monthly
returns are filed by the 25th. However, for annual returns, the final date is April 30th.

ESI Compliances: If your company has 10 or more employees and their monthly
income is less than ₹21,000, then they are eligible for Employee State Insurance (ESI). In
ESI, 0.75% of the employee's income and 3.25% from the employer's side are deposited.
The ESI challan must be deposited in the bank by the 15th of each month, and the
monthly returns for ESI need to be filed by the 15th of each month as well.
SAMPLE COMPLIANCES CALENDER