Nowadays incorporation of a company is a cakewalk- simple & user-friendly; a single window form, known as the Spice+, enables one to complete the incorporation process.
The Ministry of Corporate Affairs (MCA) has implemented several procedures and methods to simplify the incorporation of a Private Limited Company in India.
As the MCA has simplified the incorporation process it has also prescribed some compliances to maintain authenticity and avoid the incorporation of shell companies to safeguard the interest of the stakeholders.
The MCA, the regulatory authority to govern the company registration process, has prescribed several compliances to be followed.
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1. Notice of situation of registered office
Every company which did not provide details of the registered office at the time of its incorporation needs to file eForm INC-22 (Notice of situation of registered office) within 30 days of its incorporation.
The company shall:
- Affix its name, CIN, and the address of its registered office;
- Print its name, CIN, and the address of its registered office, along with telephone number, e-mail, and website addresses (if any), on all its notice, and business letters.
2. The first meeting of the Board of Directors
Every company shall hold its first board meeting within 30 days of its incorporation and shall transact the following agendas in the meeting but shall not be limited to the agendas mentioned below:
- Appointment of chairman
- Grant leave of absence to the director(s) who couldn’t attend the meeting
- Determination of Letter Head of the company
- Appointment of first Auditor(s)* and filing of eForm ADT-1
- Opening of Bank Account
- Authorization to file INC-20A
- Authorization to sign share certificate and other documents
- Disclosure of interest in form MBP-1
- Declaration of disqualification in form DIR-8
- Any other business
*Appointment of the first auditor(s) of the company. The tenure of the such auditor shall be up to the first Annual General Meeting of the shareholders of the company. In case the auditor has been re-appointed in the First Annual General Meeting of the shareholders his term shall be extended to the 6th Annual General Meeting of the shareholders of the company.
The company shall issue share certificates to its shareholders within 60 days of its incorporation. The share certificates shall be issued in accordance with the format mentioned in form SH-1.
4. Declaration Of Commencement Of Business
The company shall file INC-20A for the declaration of commencement of business within 180 days from the date of incorporation, and other declarations as may be required by the other regulatory authorities.
Where a company fails to file INC-20A within 180 days or so the ROC may initiate the process of striking off the name of the company from the register of companies being maintained by the ROC.
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