Major Post Incorporation Compliances
As the government is promoting ease of doing business in India, it has eased the process of Incorporation. However, to ensure the authenticity and proper transparency in the legal system, it has made mandatory for the companies incorporated in India to comply with certain time to time norms in order to keep themselves intact from heavy penalties.Let us study the list of post incorporation Compliances to be pursued by the Company:
- To take note of:
- a) Certificate of Incorporation;
- b) Memorandum of Association and Article of Association;
- c) Registered office;
- d) To read and record the Notice of Disclosure of Interest given by the First Directors;
- Authorization for Filing of INC-20A:
Every company incorporated in India is required to file INC-20A via stating that requisite subscription amount as required has been deposited by the subscriber in the Company Bank Account. Under this Bank Statement of the Company is required to be attached mandatorily.Only after filing of Commencement of Business a Company can commence its business.
- Appointment of First Auditor
The First Auditor to be appointed in the First Board Meeting of the Company. In case Company fails to appoint the First Auditor, the shareholder has the right to conduct the Extra Ordinary General Meeting within 90 days from the date of Incorporation and appoint the First Auditor.Further authorization for filling of ADT-1 should also be entrusted on the concerned person.
- Issue of Share Certificate
The Company is required to issue share certificate to the subscribers within 60 days of Incorporation of the Company. Hence, it should be ensured that the funds are duly received by the Company, before issuance of the Share Certificate.
- Payment of Stamp Duty on issue of Share Certificate
Once the share certificate is issued, to make it acceptable and valid document, necessary stamp duty is to be paid on the share Certificate as per the relevant stamp act applicable on the state. If the stamp duty is not paid within 30 days of allotment of shares, the Sub Registrar can impose penalty which may be upto 10 times of the duty to be paid.
- Preparation of Statutory Registers
- Register of Members
- Register of Directors
- Register of Share Transfer
- Register of Charge
- Register for Disclosure of Interest of Directors
- Preparation of First Board Meeting Minutes
Minutes for the First Board Meeting to be drafted and circulated among the Directors of the Company. Only after the consent the same shall be finalized and entered in the Minutes Book.
- Bank Account procedure
The Company shall start the process for opening of the Bank Account on immediate basis. Further, the Subscribers are requested to transfer the Subscription money immediately after opening of account.Conclusion:
Hope the reader gets the fair idea about the items to be considered in the first Board Meeting of any company. Further the above list is only inclusive; other items may also be included subject to requirement of company. In case you need any further clarification or assistance with respect to above, a person may reach to us at our email firstname.lastname@example.org and email@example.com