Registered a private limited company. What next?
Once you received the certificate of incorporation, it means, all legal formalities required for company registration is completed. There are certain Compliance required to be done after registering the Company. This blog intends to give you some clarity on the famous question ‘Registered a private limited company. What next?’ Listing down the mandatory legal and accounting compliance for a Private Limited company which are to be done within 100 days of registration.
a) Filing of Form INC-22 for situation of registered office address
b) Display Company’s Identity and other details:
After incorporation, it’s the duty of the company to display following things outside the company’s registered office and also required to be printed in all business letters, bill-heads and in all other official publications:
· Name of the company
· Registered office address of the company
· Corporate identity number or CIN
· Telephone number, email ID
· Website address and fax number if any
c) Appointment Of Statutory Auditor:
As per section 139(6) of Companies Act 2013, Company has to appoint its first auditor within 30 days from the date of incorporation in a board meeting. If the board of directors are not able to appoint then it has to be appointed within 90 days in a general meeting of members. Form ADT-1 is required to be filed within 15 days of appointment with RoC.
d) Opening of Bank Account for the Company:
To transact business the company is required to open and maintain a current account with any bank in India through which all the receipts and payments of banking nature shall be transacted. The mode of operation of the said bank account has to be decided in the first board meeting and a copy of the resolution passed with respect to operation of bank account is required to be given to the banker at the time of opening of bank account. Any subsequent changes in the mode of operation is also required to be intimated to the bank.
e) Issue of Share Certificates to Subscribers:
Within a period of two months from the date of incorporation, every company must deliver the share certificates to the subscribers of the memorandum. This means that the subscriber has to remit the agreed subscription amount within 60 days from the date of incorporation in the bank account of the Company.
f) Payment of Stamp Duty on Issuance of Share Certificate:
Every state government has made a law imposing stamp duty on the issue of a share certificate, which is to be paid to the respective state government after such an issue. The rates of stamp duty and the method of its payment differ from state to state. However, in Maharashtra the stamp duty payable is 0.1% of the face value of the shares. The non-payment of stamp duty is a very serious offence for which apart from punishment imprisonment has also been prescribed.
g) Preparing books of accounts:
Section 128 of the Companies Act, requires every company to prepare and keep at its registered office, books of account and other relevant books of account and financial statement of every financial year to give a true and fair view of the state of affairs of the company. The books of account need to be maintain with the double entry system to be preserved for eight financial years. The accounts need to be maintained at the registered address of the company or at any other place where directors decide.
h) Filing of financial statements and annual return:
A private limited company is required to file its balance sheet, profit and loss account, auditor’s report and annual return every financial year before the due date with the registrar of companies. Non-compliance to this provision will attract additional fee in addition to the normal fee that are charged while filing the e-Form.
i) Maintain Statutory Registers, Minutes and other necessary documents:
Every company is under obligation to maintain certain register under Section 85, Section 88 etc. of the Companies Act, 2013 and required to keep and maintain at its registered office in the prescribed form, any failure in maintaining the statutory register is an offence for which company as well as directors may be fined and prosecuted. Company needs to conduct at least 4 Board meetings in a year with the gap between 2 board meeting not exceeding 120 days. Every matter discussed in the meeting needs to be recorded in Minutes.
j) Obtaining PAN & TAN:
Company needs to obtain Permanent Account Number (PAN) and Tax Account Number (TAN) in the name of the Company. GSTIN in case of businesses that are GST eligible.
k) Obtain Registration under Shops and Establishment Act:
Every state needs to pass its own law from the point of view of working hours and basic facilities to be provided to the employees of the companies. Within 30 days of incorporation of a company, it is liable to obtain a registration under the law of shops and establishment as may be applicable in the respective state. The failure of obtaining shops and Establishment registration is a criminal offence.
l) Need based registration and Licenses:
Based on the business activity and the goods in which the company is dealing, there are other licences and registration which are required examples are, Drug Licence, Food Licence etc.
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