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Company incorporation is just half the battle won; the other half is still left. It includes compliance of private limited company and ROC filing of company. Once company registration process is completed, the responsibility on the entity so registered increases towards the nation. They are expected to be line with all the rules & regulations which are specified in the law. We will discuss each & every post incorporation compliance for a company in detail. A company is an artificial legal entity which possesses certain legal rights, duties, responsibilities, powers & liabilities. Ultimately it’s the shareholders who are the real owners of a company but those shareholders appoint an independent Management which will look after the operation of the company. Since it includes a lot which needs to be regulated therefore Companies act, 2013 defined the guidelines for the companies and leaves no room for any mistakes or loopholes. 1.BOARD MEETINGS At least 4 board meetings to be held in a year and at least one meeting needs to be held every year with not more than 120 days gap between 2 meetings. Presence of the directors is needed for the meeting. Quorum is 1/3rd or 2 Directors whichever is greater. For small companies conducting 2 subsequent board meeting is sufficient. 2.BANK ACCOUNT This condition is mentioned in both pre-company incorporation & post company incorporation process. Bank account is something which will deal specifically in the name of the company and will contain all the transactions of the company. Since the formed business entity is artificial in nature, and you cannot transact on this cannot be done in name of natural name. 3.OFFICIAL ADDRESS OF THE COMPANY Section (12) of companies act, 2013 specifies that the so formed artificial entity must have a registered official address within 30 days from date of incorporation. As all the financial transactions are done in the name of the company, likewise all the transaction must bear the permanent/official address of the company. This address will act as a communication address which will help all the company’s stakeholders, suppliers, creditors to communicate on the said address. 4.APPOINTING THE AUDITOR Section 139, companies act mandated that every company except Government Company must appoint an auditor which can be an individual or a firm, as the auditor of the company. Auditor must be appointed on or before the commencement of first AGM by Board of Directors. The respective auditor shall hold the office from the conclusion of that meeting till the conclusion of its 6th AGM and thereafter till the conclusion of every sixth meeting. 5.INTEREST DISCLOSURE BY DIRECTORS Directors of the company are mandated to disclose all the interest they have in any company/firm/association must be mentioned:
Company must issue the certificate of the shareholding to the respective shareholders within 60 days. 7.BOOKS OF ACCOUNTS Companies act, 2013
Income tax act, 1961
8.GST REGISTRATION GST is an indirect taxation method to levy a certain amount of taxation on manufacturing, sale & consumption of goods & services. This law came into force on July 01, 2017 and is applicable across India. If your business comes under the ambit of Goods & services tax, 2017 then one must comply with rules & regulations of GST to avoid penalties. 9.STATUTORY REGISTERS & OFFICIAL LETTER-HEAD According to Companies Act 2013, mandatorily requires that the newly incorporated company must have letter heads and other letters in a prescribed format displaying:
10.FILING INC-20A: Section 10A specifies that a company incorporated on or after 02nd November, 2018 having a substantial share capital shall not commence its business operations or exercise any of the borrowing powers unless a declaration for the same is being filed by the directors of the companies within 180 days from date of company’s incorporation. One of the most important forms which need to be filed before due date because the non-filing penalties are way too high which will affect your business during its initial stage. Apart from above mandatory compliance there are other event based compliance which a company shall abide by. Non-compliance leads to harsh penalties by company law, therefore it is always a wise decision to have a regular compliance consultant you could reach out for any types of compliances. Below is a list of events when you need to do the compliance filing so next time this event occur in your company make sure you have followed the filing rules:
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9 Comments
7/13/2020 05:06:17 am
Informative <a href="https://enterslice.com/company-registration">Private Limited Company Registration</a></p>
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10/5/2021 02:32:23 am
On the off chance that your organization was enrolled before 28 February 2018, an Annual Tax Return for the year or part year finished February 2018 is expected toward the finish of February 2019 (accepting a February monetary year end). Inability to submit it, regardless of whether the organization did no exchange, makes it at risk for managerial punishments of R250 to R16 000 for every month that it is financially past due.
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11/23/2021 09:35:36 pm
Very delighted to come across this useful article. Form ADT-1 is not required to submit before ROC at the time of appointment of first auditor of Company under section 139(6) or 139(7) of CA, 2013. Section 139(1) of the CA, 2013 mentions about the appointment of auditor other than the first auditor. However, for good governance practice, Form ADT-1 can be filed in case of appointment of first auditor. Since I have gone through your blog and found it informative, I would be glad if you visit my blog and share your valuable comments : https://bit.ly/3nKbvO6
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10/27/2022 12:12:01 am
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12/22/2022 12:20:43 am
Thanks, I am really happy with these great tips! ANNA monitors what’s been paid into your account, and checks it against sent invoices. So everything’s clean, tidy and up to date for your accountant.
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4/13/2023 01:02:11 am
Thank you for mentioning that non-compliance results in hefty fines under corporate law; therefore, it is always a great option to have a regular compliance expert you may contact for all sorts of compliances. My acquaintance finds it difficult to carry out her activities in a transparent and accountable manner. I'll advise my acquaintance to hire a nonprofit compliance attorney.
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6/27/2023 12:21:16 am
Congratulations on setting up your business! Now you’re probably wondering how business expenses work. We’ll walk you through some of the typical business expenses you can claim to reduce the amount of tax you pay on your profits.
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Israeli Lawyer Moshe Strugano
9/2/2023 02:30:25 am
A minimum of four board meetings must be held annually, and there must never be a gap of more than 120 days between meetings. The directors must be present for the meeting. The greater of one-third or two directors constitutes a quorum. Conducting two more board meetings is sufficient for small businesses.
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