Updated: Aug 26, 2021
Steps After Company Registration
Once a company is registered, there are many steps that have to be taken in order to ensure that compliance is met. The Companies Act 2013 is very clear about post-incorporation compliance and it is up to the management to make sure that they are aware of this and that they are compliant.
First Board Meeting - Section 173(1) of the Companies Act states that a company must hold a Board meeting within the first 30 days of incorporation. In this meeting certain prescribed agenda items to be discussed and a suitable resolution must be passed by the Board of Directors. Directors are allowed to attend the meeting via video conference or through physical meeting.
Bank Account - Along with company registration certificate, company gets bank account number. Until company submits KYC documents, account will not be activated. The company can not make any payments/receive funds if it does not have an activate bank account. Promoter should approach the bank to get the account activated or they can open a new account as well. Ideally the account should be opened within 60 days and share capital should be transferred within 60 days from incorporation.
Official Address - At the time of company registration, if the promoter had not given registered office address, just they have given communication address, then as per Section 12(1) of the Companies Act requires for the company to have an official registered office within 15 days of incorporation. This is needed as it will be the address to which all official messages are communicated by the various authorities. The company has 30 days to inform the registrar of the address.
Name of the company - The registered companies must place a board of the company outside its premises and company letter head, Board and other documents should contain a below details:
a. Name of the company along with Corporate Identity Number, email id, contact number and website id.
Auditor - Section 139(1) of the Companies Act requires that the first auditor must be appointed by the Board within 30 days of incorporation, except for government company. If the company fails to do so, then the directors must appoint the auditor within 90 days at an extraordinary general meeting. The term of the first auditor must be until the conclusion of the first annual general meeting.
Interest Disclosure - Section 184(1) of the Companies Act requires that all directors must disclose their interest in any company/firm/body corporate/association of individuals during the first board meeting. Any changes must be informed at the first meeting held during every financial year. If an independent director exists, he/she must give a declaration that he/she meets the criteria for independence during the first board meeting as director.
Statutory Registers - The company is required to maintain statutory registers at the registered office of the company. It must be maintained in the prescribed form and if the company fails to do so, it will be subject to penalties.
Share Certificate - Share certificates must be issued to the shareholders within 60 days of incorporation. If any additional shares are to be allotted, then the time period within which the certificates must be issues is also 60 days.
Commencement of Business Certificate - The company must obtain a certificate of commencement within the first 180 days of incorporation. There is a requirement to file a disclosure made by the directors of the company stating that every subscriber has paid the amount due on the shares.
All the above steps are essential to comply, falling which company will get exposed various penalties prescribed under Companies Act, 2013.
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