Post-Incorporation Compliance For Private Limited Companies
After a private limited company has been incorporated with the Ministry of Corporate Affairs (MCA), it has to follow the post-incorporation compliances. The company’s directors and members should be aware of and follow the post-incorporation compliances.
A private limited company is incorporated under the Companies Act of 2013. Non-compliance can lead to penalties and punishment for the company and its directors. You cannot escape liability just because you are unaware of the laws. After a pvt ltd company registration, these compliances should be followed.
Post-incorporation compliances
- According to Section 173(1) of the Companies Act, 2013, a private limited company should hold a meeting of the Board of Directors within 30 days from the incorporation of the company. Directors can attend the meeting through video conferencing or in person.
- According to Section 139(1) of the Companies Act, 2013, the Board of Directors should appoint a first auditor within 30 days of company incorporation. The government companies are exempted from this. If the company fails to appoint a first auditor within the specified time, then the Board of Directors should appoint an auditor within 90 days at an extraordinary general meeting. The term of the first auditor continues till the end of the first annual general meeting.
- According to Section 184(1) of the Companies Act of 2013, all the directors have to disclose their interest in any company/body corporate/firm/association of individuals. Any changes in the disclosure should be notified to the board at its first meeting held each year. The independent directors must give a declaration that they meet the criteria of independence in the first meeting of the board which they attend as a director. Every director should disclose his/her interest in the first board meeting in the form MBP-1 and declaration in form DIR-8.
- The company needs a bank account event before doing the registration process. Approach the nearest bank and give the required details, and submit the required form to open an account in the company’s name. The company is an artificial entity, and you cannot do transactions in any person’s name. The subscribers have to transfer the subscription money in the agreed-upon ratio to the company’s bank account.
- As per Section 12(1) of the Companies Act 2013, a company should have a registered office within 30 days of its incorporation date. The office address will be used to receive all the communication from the authorities. The company should inform the Registrar of Companies (ROC) about the office address within 30 days of the incorporation date.
- The company should add its name to all places where it carries out business operations. The name should be in a language used in the locality. The company should get a seal with its name engraved on it, letterheads, business letters and other official publications. The company should fix its name and the registered office address outside its office or place where it carries on business.
- The company should allocate the share certificates to shareholders within 60 days of the date of its incorporation. In case additional shares have to be allotted, then the time period given is 60 days from the date of allotment. The stamp duty should be paid on the issuance of share certificates.
- The company should maintain statutory registers at its registered office. They should be maintained in the prescribed form. If the company fails to maintain them, then it will be subject to penalties. The company should decide whether it wants to keep the information in physical form or electronic form.
- According to Section 128 of the Companies Act of 2013, the company should maintain paper books of accounts that represent an accurate and fair view of the state of affairs of the company. A double-entry system should be followed, and the accounting should be done on an annual basis. The company can carry out the statutory audit of accounts by a Chartered Accountant. The company should file for income tax by 30th September every year.
- The company should get a certificate of commencement of business within 180 days from the incorporation date. The company should file a disclosure made by the directors of the company stating that every subscriber has paid the share amount.