After incorporation, every company is liable to perform various legal procedures in a timely manner, which if not performed, attracts penalty. This article lists all the legal compliance a company must adhere to
Following are the compliance a company is required to comply immediately after it gets its Certificate of Incorporation.
Appointment of Statutory Auditor
Private & Public Limited Companies (except Govt. Companies) incorporated under the Companies Act, 2013 are required to appoint a Statutory auditor (Chartered Accountant), within 30 days of the incorporation of Company. If the Company fails to do so, it can inform its members and an Auditor can be appointed at an extraordinary general meeting. And that auditor shall hold office till the conclusion of its Annual General Meeting.
Holding of First Board Meeting
In order to satisfy the above requirement of appointing the First Auditor of the company within 30 days from the date of incorporation, the Company shall convene its 1st Board Meeting within 30 days from the date of incorporation
Following matters are to be considered in the first Board Meeting
- Taking on record the Certificate of Incorporation
- Noting of situation of Registered Office address
- Noting of 1st directors
- Approval of preliminary expenses
- Approval for opening of a Current Account
- Appointment of 1st Statutory Auditors
- Approval of Common Seal
- other matters
Allotment of Share Certificates
After Incorporation, the Company needs to Open a bank account in which the Shareholders will deposit the money they have agreed upon in the Memorandum of Association. Once the Shareholding amount is received, the company shall issue the Share Certificates to the Shareholders / Subscribers of Shares and this is to be done within two months from the date of Incorporation the Company. If the Company fails to do so, it shall be punishable with a fine of Rs. 5000 to maximum of Rs. 25000, and every officer in default shall be liable.
Printing of Stationery
Every company shall do the following
- Paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and if the characters employed therefor are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages
- Have its name engraved in legible characters on its seal
- Get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses,if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications
- Have its name printed on hundies, promissory notes, bills of exchange and such other documents as may be prescribed
Application for PAN & TAN of the Company
After successful incorporation of the Company, One must apply for PAN (Permanent Account Number of the Company) & TAN (Tax Deduction Account Number). PAN is required at the time of opening of bank accounts, obtaining of VAT, IEC, etc.
The names of the members & Directors of the Company shall be entered in the Register of Members & Directors respectively of the Company, with details about their shareholding ,date of allotment ,issue of share & appointment details.