Compliances for Newly Incorporated Companies
Following are the necessary compliances that every company has to adhere to after incorporation. Companies are required to hold a board meeting within 30 days of incorporation, to comply with the under mentioned mandatory compliances:
- The registered office of the company
A registered office is a place where the department sends all the notices or other documents for communication so this place must be identifiable. The company shall maintain the registered office within 15 days of its incorporation and affix board in front side with the details like the name, corporate identification number, telephone number, email id, website and address of the company in the clearly visible letters and in the language that generally used in the locality.
- Letter head printing
The letterhead and rubber stamp of the company should be prepared within 30 days of the incorporation. The letterhead of the company must have the name, CIN, address of the registered office, the email id, website, telephone number, GSTIN (if applied along with the incorporation) of the company.
- Current account opening
The company in order to receive money from subscriber and start its operation should open the company’s current account as early as possible. So at the first board meeting the name of the bank with which company wants to open the current account should be decided.
According to newly introduced form AGILE PRO (INC-35) one can select the name of the bank in which one wants to open the current account, but currently, only Punjab National Bank is enabled in this form. Kindly note that it is not necessary to open the account of the company with the selected bank under the form AGILE PRO, after discussion the directors can select other banks also.
- Filling of Form-INC-20A
According to the latest amendment the company has to file E-form INC-20A within 180 days from the date of its incorporation. This is the declaration filed to the registrar that every subscriber to the memorandum has paid subscription amount that they have agreed to pay during the incorporation of the company. Without filling this form the company shall not commence its business or cannot borrow any money. Most important thing to be noted that failing to file this form restricts the company to file any other form with the department. The mandatory attachment of this form is the proof of the deposit of subscription money by the subscribers of the memorandum i.e., the company’s current account statement showing the deposit of the subscribed capital (paid-up capital) of the company.
- Issuing of share certificates
Every company shall print and issue the share certificates to the first subscribers within 2 months from the day of incorporation of the company. These certificates must be duly signed by the directors of the company along with authorized representatives (that can be any director or company secretary if appointed).
- Appointment of the first auditor
The first auditor shall be appointed in the first board meeting of the company that is held within 30 days after incorporation. One resolution will pass for appointment of auditor who will be responsible for audit for that period till the next AGM. Subsequently, in the first AGM of the company, the statutory auditor shall appoint till the conclusion of the sixth AGM after passing the resolution. The company is required to inform about the appointment of auditor in form ADT-1 within fifteen days to the registrar of company.
- Minimum requirements of board meetings in a financial year
Every company shall hold minimum four meetings of its board of directors every year i.e. one meeting in each quarter and there should not be more than one hundred and twenty days gap between two board meetings of the Board. For small companies like (OPC) one person company and dormant company only 2 meetings are required to be conducted with a minimum 90 days gap between them in each year.
- Annual filing
First annual general meeting of the company is to be conducted within 9 months of the closure of the financial year. While annual filling 3 forms are required to be filed, ADT-1 form for appointment of statutory auditors of the company, AOC-4 form for filing the financial statement and audit report of the company within 30 days from the date of annual general meeting and MGT-7 form for filling details of shareholding which is required to filed within sixty days. For Public company along with the above mentioned forms, MGT-14 for approval of financial statement and report of the board of directors are also to be filed. Failing to file these forms will lead to pay extra fees.
- Minutes of meetings
Every company shall maintain the minutes book of every meeting of shareholders as well as board of directors within 30 days of the conclusion of the meetings. The minutes must be kept at the registered office of the company.
- Maintenance of statutory registers
The company has to maintain certain registers and is to be kept at the registered office of the company. Following are the prescribed registered which companies should maintain,
MGT-1: In these, entries related to the details of the members of the company would be maintained.
Register of directors and KMP (Key Managerial Personnel):- In this register, the details like name, address, shareholding pattern and KYC of the directors of the company would be mentioned.
SH-2: Records of duplicate and renewed share certificates issued by the company would be entered in this register.
- Authorize one director
The company can authorize one of the directors in its first board meeting for all the events to be happening in the near future and to take necessary steps just to implement the particular decision of the board of directors of the company for the whole financial year.
- Take registration certificate on the basis of main objects
If the company has main objects of import and export then IEC registration is mandatory for these types of companies. If the company is involved in the food business, then the registration of FSSAI is mandatory and if the company is involved in a medicine business than drug license is required for the company. Kindly note that allied compliances related to these registrations are required to be done timely.
If the base is strong than the concrete buildings can be constructed. So start complying with the necessary requirements from the initial stage of the company, to evade unnecessary penalties.
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