Once a company gets incorporated, the series of compliances for newly formed companies begins. These compliances shall be made within the provided timelines to avoid penal provisions under Companies Act, 2013.
The following are the list of such major compliances –
1. First Board meeting: A company is required to hold its first board meeting within a period of 30 days from the incorporation as per Section 173(1), of The Companies Act 2013. As per new circulars of the Ministry of Corporate Affairs the meeting can also be held by video conferencing.
2. Registered Office Address: A company is required to have a permanent registered office and shall convey the same to the Registrar of Companies (ROC) within 30 days of its incorporation as per section 12(1) of Companies Act, 2013. The address is used for correspondences from various authorities.
3. Name Game: As per section 12(3) of Companies Act 2013, every company is required to paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters in local language. Also, the company shall get its stamp(if any) with its name engraved on it, letterheads with appropriate information and printed negotiable instruments.
4. Appointment of First Auditor: Every company shall appoint its first auditor in its board meeting, within 30 days from the time the company is registered. If the board fails to do so, the members of the company shall appoint the auditor within 90 days at an extraordinary general meeting. The term of office of first auditor shall be until the conclusion of the first annual general meeting, as per the provisions of section 139 of Company Act, 2013.
5. Issuance of Share certificate: In its first board meeting, the company shall also approve the draft share certificate and also make sure that the share certificate are issued to all the shareholders within two months as per section 46 of Companies Act, 2013.
6. Disclosure of Interest: As per the provisions of section 184(1) of the Companies Act 2013, the directors of the company shall disclose their interest in any firm/body corporate/company/association in the first board meeting in FORM MBP-1.
Maintenance of Statutory registered: Every company shall start maintaining the statutory register like, register of members, register of directors etc, at the registered office of the company.
7. Commencement of business certificate: As per provisions of section 10 A of Companies Act, 2013, every company incorporated after 2nd November 2018 with share capital shall obtain, within 180 days, a certificate of commencement of business. Form 20 A shall be filed along with the proof of valid registered office and the declaration that all the subscribers of the company have paid the amount due of his shares.
The legal advisor or company secretary of the company shall make sure that the above requirements are met by the companies to avoid any kind of penalties under the provisions of companies act.
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