1. Conduct Board meeting within 30 days from the date of Incorporation.

Penalty for non-compliance: 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 twenty-five thousand rupees. 

2. Open a Bank Account.

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.

3. 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.

4. 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.

Penalty for non-compliance: 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. 

5. Stamping of share certificate.

Time limit for payment of stamp duty without delay is 30 days from the date of issue of share certificate.

Penalty for non-compliance: 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 Act, which may extend to 10 times of the duty. 

6. 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.

Penalty for non-compliance: 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 one thousand rupees for each day during which such default continues but not exceeding an amount of one 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. 

7. 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

Penalty for non-compliance: 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 twenty-five thousand rupees. 

8. 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.

9. Annual Filing.

Company has to file form AOC-4 for Balance Sheet and Statement of Profit and Loss within 30 days from the date of Annual general Meeting and form MGT-7 for Annual Return within 60 days from the date Annual General Meeting.

Penalty for non-compliance: Late filing fee of Rs. 100 per day per form. 

10. 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.

Penalty for non-compliance: the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees.

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 two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.

Author Bio

Qualification: CS
Company: ZZZ LEGAL CONSULTING LLP
Location: DELHI, New Delhi, IN
Member Since: 31 Jan 2020 | Total Posts: 2

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