5 Legal Compliances: Right After Your Business Registration

You’ve registered a Company in India successfully … Congrats! It’s a big step, for sure. But here’s the thing—now what next?

Most business owners, especially those coming from abroad, hit this exact moment and go. There’s a ton of uncertainty after they register their company, like which forms do I need to file? Which deadlines matter? And honestly, what happens if I don’t get it all right?

Let’s simplify all the complex things for you in this blog and get you right on the point, make life smoother, and do serious business.

As we all know, India is a land with huge potential. No doubt! But it also has a pretty detailed legal setup for all your company’s safety regulations. Registration might feel like a big milestone—it’s just the start of your compliance journey. And after that, there is a whole “post-registration” phase. It’s not just about ticking off a checklist. It’s how you build trust—with banks, with investors, and most importantly, with the government. This guide is here to help you dodge all that. If you’re a U.S. company setting up in India or any foreign entrepreneur starting fresh—this one’s for you.

We’ll walk through the five key legal compliances steps you’ll need to follow after registering your business

1. Ministry of Corporate Affairs (MCA) Filings—Not Done Yet!

Done with your company registered. That’s awesome, but now it’s time to shift gears into compliance mode with the Ministry of Corporate Affairs (MCA).

As per the Companies Act 2013, every company—Indian or foreign-backed—must meet a few key filing duties in the post-registration phase. These aren’t just formalities. They keep your business in “active” status and help avoid legal messes later on.

Here’s the basic checklist:

NC-20A – If your company has share capital, this one’s non-negotiable. You need to file Form INC-20A within 180 days from the date of incorporation. It tells the ROC (Registrar of Companies) that your shareholders have pitched in their part, and you’re good to go. If you Skip it, then you will be penalized INR 50,000, or your company can be delisted.
MGT-7 – Your Annual Snapshot -This is the MCA’s way of saying, “Show me your progress.” This return highlights shareholding, board details, and more. You’ve got 60 days from your Annual General Meeting (AGM) to get this in.
AOC-4 – Financial Report Card. Your numbers—balance sheet, profit/loss, audit report—all go here. File it within 30 days of your AGM to stay on track. Why it matters: These filings are your paper trail. Investors, banks, and even government bodies refer to these when they do their checks. Forgetting or ignoring them? It’s not a smart move.

Heads-up for Foreign-Owned Companies: If your Indian business is a subsidiary of your foreign business, make sure everything—from shareholding details to resolutions—is synced with your global docs. Mismatches, delays, or compliance requirements can create headaches.

Real Tip: MCA deadlines aren’t flexible. Miss them, and the fines can pile up—₹1,000 per day, perform. Worse still, your directors can get disqualified, or your company’s bank accounts can freeze. Play it safe! Set reminders. Keep your filings neat.

2. Income Tax Compliance – Time to Crunch the Numbers

Let’s move to the second setup of company incorporation. Once you’re official, the taxman is watching. Whether or not your business has started earning, your obligations to register at the Indian Income Tax Department kick in right away.

Here’s what you need to stay clear of trouble:

PAN and TAN – These are your tax credentials. You likely received your PAN (Permanent Account Number) and TAN (Tax Account Number) when your business was registered. Still, don’t forget to double-check that both are active and correctly mapped. PAN is used for your tax filings. TAN is needed if you’re deducting TDS from payments like salaries or vendor bills.
Advance Tax—Don’t wait until the end—if your company owes more than ₹10,000 in taxes in a financial year, you’re expected to pay in advance, spread across four installments: June, September, December, and March. In case of missing a payment? Expect interest charges under Sections 234B and 234C to follow.
Filing the Return—ITR-6 — Every company must file its income tax return using Form ITR-6 by October 31 of the following year. This includes profits, expenses, tax paid, and deductions. The return must be submitted online and signed digitally.
Tax Audit – Forms 3CA/3CB & 3CD — If your total turnover goes over ₹1 crore (or ₹50 lakh for professionals), you’ll need to get your accounts audited. A certified CA will check your books and submit Form 3CD, along with either 3CA or 3CB.
Transfer Pricing -Heads-up for Foreign-Owned Entities — if your Indian arm is transacting with its overseas parent or sister companies, you must comply with transfer pricing rules. That means pricing has to be fair, just like it would be between unrelated businesses. Keep all agreements and a formal Transfer Pricing Study handy. You might also need to file Form 3CEB.

Messing up tax compliance isn’t just a paperwork issue—it can snowball into audits, penalties, and scrutiny you don’t want. Indian tax law leaves no room for slack. Stay on top of your filings, plan quarterly, and don’t wait for reminders. It’s way easier (and cheaper) to do things right the first time.

3. GST and Indirect Tax Compliance – What You Can’t Ignore

If you’re selling products or services in India, then GST (Goods and Services Tax) applies to your operations. And yes—even if you’re mostly working with overseas clients—don’t be surprised if GST still shows up, thanks to reverse charge mechanisms.

Here’s the stuff that deserves your attention:

GST Registration – Sooner or Later, It’s a Must. If your annual turnover crosses ₹20 lakh for services or ₹40 lakh for goods, GST registration becomes mandatory. And if you’re doing business across state lines or using e-commerce platforms, you need to register regardless of your revenue. Many foreign-backed businesses just register from the get-go—it saves headaches down the road.
Regular GST Returns – Don’t Miss! This GST isn’t one of those “file once a year” taxes. You’ve got to stay on top of:

GSTR-1: This shows your outward supplies, aka your sales
GSTR-3B: A summary return of sales, purchases, and how much GST you owe. You’ll file either monthly or quarterly, depending on your revenue.

Claiming Input Tax Credit (ITC) — Good news: you can claim back the GST you’ve paid on business-related foreign exports, But—and this is important—it only works if your vendors are GST compliant, too. If they skip filing their returns, you may lose your credit. If you don’t want to file claims again and again on every transaction, the alternative is GST (LUT). You have to give an undertaking to the government for Export transactions Without Paying GST upfront at the start of the financial year.
GST Audit– If your company turns over more than ₹5 crore in a year, you may be required to undergo a GST audit. Make sure your filings are clean, and your books are audit-ready.

Pro Tip for Foreign Companies: Double-check your invoice format. A simple mismatch in GST invoicing can delay client payments or mess up your tax credits. Trust us, this happens more than you think.

And yes, the GST portal is as punctual as it gets. Miss a deadline, and you’ll face late fees, interest, and possibly even blocked ITC. So, mark those dates on your calendar.

4. FEMA & RBI Compliance – What Every Foreign-Owned Company Needs to Know

Foreign investment in your Indian entity, even if it is just a tiny slice, you’re now playing by the rules of FEMA (Foreign Exchange Management Act) and the Reserve Bank of India (RBI). And nope—it’s not just boring paperwork. These regulations keep a tight watch on how foreign capital moves in and out of the country.

Let’s walk through what you should stay on top of:

FC-GPR Filing—Don’t Miss This Deadline Whenever a foreign investor sends funds to your Indian company and you allot shares in return (be it equity or convertibles), Form FC-GPR must be filed on the RBI’s FIRMS portal within 30 days. You’ll need to share details like share price, investor info, and ownership breakup. Skip this? You might be blocking future funding or drawing scrutiny during your next due diligence round.
FLA Return – It’s Annual, and It’s Mandatory. Any Indian Company with foreign investments or overseas assets must file the FLA Return each year by July 15. Even if there’s been no change from last year, you still have to file.

Quick Tip: Don’t leave it till the last minute. Your CA, banker, or CFO might need time to gather all the info—and delays are a hassle no one wants.

Pricing & Valuation Guidelines — When you issue shares to a foreign company, the pricing must follow RBI’s fair valuation norms. Typically, you’ll need a valuation certificate based on global standards like DCF (Discounted Cash Flow), done by a CA or SEBI-registered merchant banker.
ODI & ECB Reporting – (Extra Eyes on You) Planning to invest outside India (ODI-Overseas Direct Investment) or raise money through foreign loans (ECB-External Commercial Borrowings)? These, too, fall under FEMA’s radar. There are caps, formats, and reports to follow—or approvals could get delayed down the road.

Pro Move: Keep all your FEMA-related documents in one place—board meeting minutes, FC-GPR acknowledgments, capital inflow proofs, and share certificates. RBI might not knock today, but if they do, you’ll want to be ready.

FEMA & RBI compliance isn’t just a formality. It’s a big part of your company’s legal hygiene. Get it right early, and you’ll thank yourself when raising the next round or opening another branch.

5. Labour Law & HR Compliances – The Stuff You Can’t Ignore Once You Start Hiring

Finally, hire your first few employees in India. Congrats! You’re officially stepping into the world of labor law. It’s not just about salaries and paydays. India has a web of employment regulations that kick in pretty early and are different from state to state.

Here’s what you need to keep on your radar:

Provident Fund (PF) – If you have 20 or more employees. Then, PF registration is mandatory. Both you and your team contribute a part of the salary to this fund, which helps employees build savings for retirement. It’s not optional—and skipping it can land you in trouble.
Employees’ State Insurance (ESI) – If you’ve got 10+ employees earning under ₹21,000 per month, then ESI applies. It’s health and disability insurance for your team, and both employer and employee make small monthly contributions.
Professional Tax (PT)– Some states, like Maharashtra, Karnataka, and West Bengal, levy this tax on employees’ salaries. As the employer, it’s on you to deduct it and pay the government every month.
Labour Welfare Fund – Not all states ask for this, but where it’s applicable, both employer and employee chip in a tiny amount towards welfare schemes for workers.
Other Laws—As you grow your business, other laws might apply. Expect laws like the Shops and Establishment Act, Maternity leave rules, Gratuity payouts, and Bonus regulations to come into play. Most of these are triggered by employee headcount and salary levels.

In Short:

You’ve officially registered your business in India—Nice Work! But this isn’t the finish line—it’s the starting point. And then comes the equally important part: staying compliant with India’s legal and regulatory framework. You’ll need to file your declaration of business commencement, submit annual returns to the MCA, stay on top of income tax filings, and manage GST registration and returns. If you have foreign investment, you’re also under the radar of FEMA and the RBI, which means filings like FC-GPR, FLA, and valuation reports. Skip any of these? It could mean penalties, blocked investments, or regulatory scrutiny.

Start hiring people? Now labor laws kick in—PF, ESI, professional tax, and state-level rules you can’t ignore. The rules may vary, but the need to follow them doesn’t. It might seem like a lot, especially if you are new to India’s business landscape. That’s where we come in.

Here’s how Mercurius supports you behind the scenes:

Help you choose the right business structure that fits your goals
Sort out your PAN, TAN, and GST—no more form-chasing
Make sure your business bank account is set up without any hiccups
Handle all those MCA filings and legal forms so you don’t miss deadlines
Keep you in the loop and on track with year-round compliance

We won’t use jargon or leave you guessing. We’ll provide straight-up, reliable support so you can focus on what you came here to do—grow your business.

How Mercurius Can Help You?

Figuring out India’s regulatory maze isn’t exactly a walk in the park, especially if it’s your first time doing business here. At Mercurius, we’ve helped entrepreneurs and companies from across the globe smoothly set up and run their operations in India. We assist in all pre-and post-registration business support. Not just this, but we offer a range of services, including Audit, Taxation, Bookkeeping, compliance, and other paperwork needs. If you require personalized assistance or have any further questions, please don’t hesitate to contact us. We’re here to help you navigate through the complexities of financial management seamlessly.

Start smart. Stay compliant. Grow with confidence. Let’s make your India story a success.