When your company is incorporated, a set of compliance-related formalities must be completed to maintain compliance as mentioned in the Companies Act, 2013. Non-compliance could lead to penalties on the Directors and the Company that is why it is essential for those incorporating a company to be aware of the post-incorporation compliance requirements of a company.
Obtaining the Certificate of Registration for your Company is an exciting and memorable moment in your business start-up journey. You might have gone through the procedure of arranging needful and required documents as per prescribed standards of MCA (Ministry of Corporate Affairs).
Your Company is born and act as an artificial legal person with few inherent features, rights, powers, and liabilities.
Receive the Certificate of Incorporation is a starting point for a series of compliances a company you need to follow under several legislations in India from time to time.
‘IGNORANTIA JURIS NON EXCUSAT’- This term means Ignorance of Law Is Not an Excuse.
So, the directors & shareholder must be aware about the legal and process compliance requirements a Registered Company should follow under various laws from time to time. A company can function efficiently and effectively only after fulfilling these formalities & compliances.
Following are some actions which need to be taken post company incorporation: –
First Meeting
According to Section 173(1), of The Companies Act 2013, the company shall hold a meeting of the Board of Directors in less than 30 days from the date of its incorporation. Directors are permitted to attend the meeting face to face or through video conferencing.
Bank Account
Companies require to have a bank account even before approaching the authorities for company incorporation. As mention above the company is an artificial entity so the transactions cannot be done in the name of any natural person.
Official Address
According to the Section 12(1), a company shall have a registered office within 15 days from the date of incorporation.
Auditor
As per the Section 139(1), the first auditor shall be appointed by the Board of Directors (BOD), except for a government company, within 30 days from the time the company is registered. Failing which, the members will appoint the auditor within 90 days at an EGM aka extraordinary general Meeting.
Interest Disclosure
At the first board meeting, every director shall disclose his interest in any company/firm/body corporate/association of individuals as mentioned in section 184(1) of the Companies Act 2013. Any changes in the disclosures shall be intimated to the board in its first meeting held during each financial year.
Statutory Registers
The company will be required to maintain statutory registers at the registered office of the company. The same will be maintained in the prescribed form failing, which the company will be subject to penalties.
Share Certificate
Within 60 days from the date of incorporation, the share certificate shall be issued to a shareholder. In case of additional shares being allotted, the time is taken as 60 days from the date of allotment.
Books of Accounts
According to the section 128, every company shall maintain proper books of accounts which shall represent an accurate and fair view of the state of affairs of the company. The accounting will take place on an accrual basis and the double entry system shall be followed.
Commencement of Business Certificate
The company shall obtain a certificate of commencement of business within 180 days. There is a necessity to file a disclosure made by the directors of the company stating that every subscriber has paid the amount due on the shares.