Congratulations—you’ve officially registered your business! 🎉 Whether you’ve launched a Private Limited Company, LLP, OPC, or even a Sole Proprietorship, the first year is a crucial time to set up your systems, meet legal deadlines, and avoid any penalties.
But where do you begin?
This blog breaks down the essential compliance tasks you need to handle in the first 12 months after registering your business in India. Consider it your go-to checklist for staying on the right side of the law—while staying focused on growth.
📆 Why the First Year Is So Important
The early days of any business are filled with excitement—but also paperwork. It’s easy to overlook filings, tax registrations, or statutory obligations when you’re busy with sales, hiring, or building your product.
But non-compliance—even by mistake—can lead to:
- Penalties or interest on late filings
- Difficulty opening business bank accounts
- Issues with investors or loan approvals
- Suspension of GST or business licenses
- Damage to your brand’s credibility
✅ First 12 Months Compliance Checklist for Indian Businesses
Here’s what you need to do, month-by-month or milestone-by-milestone, once your business is incorporated or registered:
1. Get PAN & TAN (Immediately after incorporation)
Once your company is incorporated (especially Pvt Ltd, LLP, OPC), the PAN and TAN are usually issued automatically with the Certificate of Incorporation.
📌 PAN: Required for tax filing and opening a bank account
📌 TAN: Required if your business will deduct TDS (Tax Deducted at Source) from payments
2. Open a Current Bank Account (Within 15–30 days)
Use your PAN, Certificate of Incorporation, business address proof, and identity documents to open a current account in the name of your business.
Make sure it’s KYC compliant to enable full functionality.
3. Apply for GST Registration (If required)
If your business meets any of these criteria, GST registration is mandatory:
- Turnover exceeds ₹40 lakh (₹20 lakh for services)
- You’re selling goods or services inter-state
- You’re selling online (via Amazon, Flipkart, your own site)
Apply via gst.gov.in
📌 Once registered, you must file monthly/quarterly GST returns, even if there’s no sale.
4. Register for MSME (Udyam) (Optional but recommended)
MSME registration under Udyam is free and offers:
- Access to subsidies and loan schemes
- Priority in government tenders
- Easier access to credit and funding
Apply at udyamregistration.gov.in
5. Appoint a Statutory Auditor (Within 30 days)
For Private Limited Companies and OPCs, appoint a CA (Chartered Accountant) as your auditor within 30 days of incorporation.
📌 They’ll audit your books annually and help with ITR & ROC filings.
6. Maintain Books of Accounts (Start from Day 1)
Whether manual or digital, maintain proper records of:
- Invoices issued and received
- Expenses, salaries, and purchases
- Bank transactions
- GST and TDS-related documents
📌 Use accounting software like Zoho Books, Tally, QuickBooks, or hire a bookkeeper.
7. File TDS Returns (Quarterly, if applicable)
If you deduct TDS on payments (salaries, rent, professional fees), you must:
- Deposit TDS monthly
- File TDS returns quarterly (Form 24Q/26Q)
Late filing leads to interest and penalties.
8. Conduct Board Meetings (For companies only)
Private Limited Companies and OPCs (if there’s more than one director) must:
- Conduct the first Board Meeting within 30 days
- Hold at least 2 board meetings annually
📌 Maintain minutes and resolutions for key decisions.
9. Annual Return Filing with MCA (After financial year end)
For Private Limited, OPC, and LLPs, you need to file:
- AOC-4: Financial statements
- MGT-7: Annual return with shareholder details
- Form 11 (for LLPs): Annual return
- Form 8 (for LLPs): Statement of accounts
📌 These filings are due within 180 days of financial year-end.
10. Income Tax Return (ITR Filing)
File your business tax returns based on structure:
- ITR-3 / ITR-4 for Sole Proprietors
- ITR-5 for Partnerships or LLPs
- ITR-6 for Private Limited Companies
📌 Due date: 31st July (individuals/sole props)
📌 30th September/October for audited businesses
11. Prepare for Audit (If turnover crosses thresholds)
Audit is mandatory if:
- Turnover exceeds ₹1 crore (business) or ₹50 lakh (professionals)
- You opted for presumptive tax and turnover is > ₹2 crore
- You’re a company/LLP (audit is mandatory by default)
Hire a CA to conduct and file your tax audit report.
12. Renew or Track Business Licenses
If you’ve taken:
- Shop & Establishment License
- FSSAI (for food businesses)
- Trade License or Professional Tax
📌 Keep track of renewal dates.
📌 Ensure display of registration certificate at business premises.
🧾 Bonus: Monthly Compliance Routine (At a Glance)
| Month | What to Do |
|---|---|
| 1 | PAN/TAN, Bank A/C, GST if required |
| 2–3 | Auditor appointment, bookkeeping setup, MSME registration |
| 3–6 | TDS and GST returns, board meetings (if company) |
| 6–9 | Financial planning, track licenses, check turnover thresholds |
| 10–12 | ITR filing, MCA returns, audit (if applicable), plan next FY compliance |
🧠 Final Thoughts: Compliance = Confidence
Your first year in business sets the tone for everything that follows. By staying compliant, you avoid penalties, build credibility, and create a strong foundation for funding, partnerships, or scaling operations.
Don’t think of compliance as just a task—think of it as a way to future-proof your business.
