Compliances after Incorporation of Company:-

Case Law Update

1.Bank Account:-

After the incorporation of the company there must be a bank account in the name of the company so that authenticity of each and every transaction can be maintained for the sake of stakeholders of the company. Since the company is a separate legal entity, the transactions cannot be done in the name of any natural person. The said bank account shall be needed for other legal registrations.

2.Commencement of business certificate:-

Within 180 days, the company shall obtain a certificate of commencement of business by filing Form INC 20A. Every subscriber of Private Limited Company has to introduce share capital within 60 days of its incorporation by way of cheque or online transfer. Shareholder holding shares worth less than rupees twenty thousand can introduce his share capital by way of cash. However it is not advisable to introduce share capital by cash.There is a requirement to file a disclosure made by the directors of the company stating that every subscriber has paid the amount due on the shares.

3.Allotment of the Securities and Issue of Share Certificate:-

Company must allot the shares to its subscribers within 60 days from the date of incorporation of the company whose name is mentioned in the articles of association and memorandum of association of the company. Company must issue share certificates to all the subscribers of the Company within 60 days from the date of incorporation of the company duly signed by MD and CS if any otherwise by any two directors of the Company

As per the requirement of the provision of the Indian Stamp Act 1899 every instrument must bear a stamp duty with proper amount and it must be paid to the concerned department within 30 days from the date of issue of share certificates (Revenue Department). It can be paid via portal SHCIL online with necessary attachment.

4.First meeting:-

The company shall hold a meeting of the Board of Directors in less than 30 days of incorporation of Company. Directors are permitted to attend the meeting either in person or through video conferencing. Company should maintain minutes of meeting of all the board meetings and attendance register for its records. The first directors of the company has to disclose their interest in other entities to the company in the meeting of board of directors and board will discuss on the same and intimate to ROC. If required the company will also maintain the record of the same in the register of the company.

5.Appointment of First Auditor:-

Company has to appoint the first auditor of the company within thirty days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting. Failing which the company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees.

6.Statutory registers:-

The company shall be required to maintain statutory registers at the registered office of the company. i.e. register of members, register of directors, charges, Debenture holders and other matters pertaining to the shareholders and management of the company and it must be regularly updated and to be kept at the registered office of the company.

7.GST Registration and PF/ESIC Compliance:-

In the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. A labour consultant may need to be appointed for compliance of PF/ESIC/other labour laws applicable to the Company.

8.Books of Accounts:-

Every company shall maintain proper books of accounts at their registered office which shall represent an accurate and fair view of the state of affairs of the company. The double entry system shall be followed, and the accounting is to be done on an accrual basis. A proper accountant may be appointed on Full time/part time basis to carry out data entry on regular basis. An option for online Accounting Software like Zoho books or Quickbooks may be explored.

9.Compliance related to stationery

As per the provisions of the Companies Act, all the companies are required to print its name, registered office address, Corporate Identity Number (CIN), telephone number, fax number (if any), email address and website address on all its visiting cards, letterheads, billheads, notices and all other official publications.

10.Annual Compliances

As a part of Annual filing, Companies are required to file AOC-04 for filing financial Statements, MGT-07 for filing Annual Return by companies having share capital.

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