All the Private Limited Companies are required to file certain compliances under the Companies Act. It is always advisable to file all the compliances within specified time limit as there are heavy penalties for delay or default in filing compliances.
After incorporation of a Private Limited Company, it has to follow certain rules and regulations in order to run the business smoothly. In this article we have discussed 7 most important compliances after Private Limited Company incorporation.
Open Bank Account
Opening a Bank Account in Company’s name is perhaps the most important thing a Company has to do after incorporation. Though opening a Bank Account is not a legal compliance, but it is very important from the point of view of starting business. Without a Bank Account it is not possible to complete some of the compliances under Companies Act.
Introduction of Share Capital
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.
Issue of Share Certificates
Company has to issue share certificates to all its share holders within two months of its incorporation. Share certificate is an evidence of holding shares by the shareholder. Non issuance of share certificates may attract penalty ranging from Rs. 25000/- to Rs. 500000/- to company. Directors of the company may have to pay penalty ranging from Rs. 10000/- to Rs. 100000/- for not issuing share certificates on time.
First Board Meeting of Company
First Board Meeting of the Company should be held within 30 days of company’s incorporation. Company should maintain minutes of meeting of all the board meetings and attendance register for its records.
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.
All the companies are required to file form INC 22 with the Registrar of Companies within 30 days of its incorporation if the same was not filed during the process of incorporation.
Appointment of Auditor
The Board of Directors must call a board meeting within 30 days of incorporation (refer point 4 above) and appoint First Auditor of the Company. If the Board of Directors of Company fail to appoint auditor within 30 days of incorporation, the shareholders of the company will have to appoint auditor within 90 days of incorporation by calling Extra-ordinary General Meeting. The tenure of the First Auditor of the Company shall be upto conclusion of First Annual General Meeting of the company.
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