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Article explains top 10 Compliances for newly incorporated Private Company which includes Conducting first Board meeting within 30 days from the date of Incorporation, Opening of Companies Bank Account, Appointment of Statutory Auditor of Company, Allotment of Securities and Issue of share certificate, Stamping of share certificate, Filing of e-form INC-20A, Minimum Board meetings, Holding of AGM, Annual Filing and Maintenance of Statutory Registers under Companies Act- 2013.
Company Law Compliances Chart for newly incorporated Private Company
| Compliance | Particulars | Description | Relevant Provision for non-compliance |
| First | Conduct Board meeting within 30 days from the date of Incorporation | Every officer of the company whose duty is to give notice under this section and | Who fails to do so shall be liable to a penalty of INR 25,000 |
| Second | Open a Bank Account | No penal provision but every newly incorporated company shall in its first board meeting pass a resolution to open an Account in name of the Company in order to receive money from subscriber and start its operation. Must pass resolution within 30 days from the date of incorporation | NA |
| Third | Appointment of statutory Auditor | Every newly incorporated company shall in its first board meeting pass a resolution to Appoint Statutory Auditor of the Company. Must pass resolution within 30 days from the date of incorporation | |
| Fourth | Allotment of Securities and Issue of share certificate | Every company shall, deliver the share certificates of all securities allotted to subscribers to the memorandum within a period of two months (2 months) from the date of incorporation. | If allotment is not done within 60 days then refund the whole application money within next 15 days. If not refunded, then refund application money along with interest @12% p.a. after the expiry of 60 day. |
| Fifth | Stamping of share certificate | Time limit for payment of stamp duty without delay is 30 days from the date of issue of share certificate. | In case of non-payment of stamp duty or evasion of payment of stamp duty on the issue of share certificate in case of allotment of share, the company shall be liable for heavy penalty under the Compliances for Newly Incorporated Private Company Act, which may extend to 10 times of the duty |
| Sixth | Filing of e-form INC-20A | Every Company shall file E-form INC-20A within 180 days from the date of Incorporation. Company shall not commence business or exercise any borrowing power without filing of E-form INC-20A | The Company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of INR 1,000 for each day during which such default continues but not exceeding an amount of 1 lakh rupees. Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, initiate action for the removal of the name of the company from the register of companies. |
| Seventh | Minimum Board meetings | Every Company shall hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board | Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of INR 25000. |
| Eight | Holding of AGM | A company shall hold its first AGM within a period of nine months from the date of closing of the first financial year of the company | Compounding of Offence |
| Nine | Annual Filing | Company has to file form:
|
Late filing fee of Rs. 100 per day per form |
| Tenth | Statutory Registers | Compliance Maintenance of Statutory Registers Company has to maintain certain registers as prescribed under the act like Register of Members in form MGT-1, Register of debenture holders/ other Securities holders in form MGT-2, Register of Charges in form CHG-7, minute book, etc. | The company shall be liable to a penalty of INR 25,000 and every officer of the company who is in default shall be liable to a penalty of INR 5,000.
If a person is found guilty of tampering with the minutes of the proceedings of meeting, he shall be punishable with imprisonment for a term which may extend to 2 years and with fine which shall not be less than INR 25,000 but which may extend to INR 1 Lakh rupees |
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