Incorporating a company does not means you are done with your part of the job. Although a private limited company is the most popular form of starting up a business, there are numerous compliances which need to be initiated once your business is incorporated. The Companies Act, 2013 requires proper compliances of rules and laws which should be followed by every company like reporting of financial results, reporting of changes in management, maintenance of statuary registers and records, auditing of accounts, compliances with the Registrar of Companies etc.
First of all, intimation is to be sent to the Registrar of Companies about the registered office of the company. This is to be done within 15 days of incorporation so that the company starts receiving communication and notices, and duly acknowledge them. Then after you need to display details of the company outside the registered office on a board stating name, address, CIN no. and contact no. Also the same needs to be printed on the letterheads of the company and published on the website of the company. Non-compliance of the same might attract penalty to the company.
List of company compliances that you need to comply with-
A rubber seal having the company name along with the designation of the person having signing authority on behalf of the company is required to be made for the opening of bank account and attesting the company documents.
Share certificates have to be issued to the subscribers of the memorandum of association. It is to be issued within sixty days of the company incorporation process. Stamp duty should be paid on the issuance of share certificate.
Opening of Bank Account
A current account in the name of the company shall be opened with the bank. This helps in conducting day to day transactions of the company.
Shops & Establishment Registration
It is required to obtain registration under the Shops and Establishment Act by every company.
A company shall protect their design, logo etc. by obtaining trademark, patent etc.
After receiving the incorporation certificate, one of the directors must issue the notice for the first board meeting of the company within 30 days of incorporation (at least seven days prior to the meeting being scheduled for).
Maintaining Statutory Registers
Statutory Registers such as Register of members, Register of directors, Register of shares etc. has to be recorded and maintained duly.
Appointment of Statutory Auditor
The company has to appoint a Statutory Auditor in their first Board Meeting.
Convening Annual General Meeting
AGM is required to be held once in a year. The meeting should be conducted at the registered office of the company only during the business hours of a day. The notice of AGM shall be prepared as per Section 101 of Companies Act 2013 and Secretarial Standard – II.
Disclosure of Directors Interest
Directors are required to give disclosures about their interest in any other business entity in first Board Meeting in which they participate as a director and then after in first Board Meeting of every financial year in FORM MBP-1 to the Company.
Annual Filing and Annual Return
A company needs to close their books of accounts at the end of every financial year & should prepare the necessary financial statements such as Balance Sheet along with the statement of Profit & Loss Account.
Income Tax Compliances
The company shall register for professional tax and for its directors in the income tax department. Income tax is to be paid at the rate of 30% which is reduced to 25% in the case of startup companies. Education cess of 2% & Secondary and higher education cess of 1% is applicable. A surcharge is applicable at the rate of 10 percent if the total income exceeds Rs. 1 Crore.