Post Incorporation Work updated till 26.01.2019
Process of Incorporation has been amended more than 10 times since Effectiveness of Companies Act, 2013. Similarly much compliance has been decreased and increased by amendments in Companies Act by Circulars, Notifications and amendment in Rules in respect of Post Incorporation of Compliances.
Post Incorporation compliances are divided as per Time Line:-
I. Works require to be done Immediately after incorporation
II. Works require to be done within 30 days of Incorporation.
III. Works required to be within 30 to 180 days of Incorporation
Works required to be done immediately after Incorporation:
1. Whether Companies required applying for PAN after incorporation.
First practical requirement for a Company is Permanent Account Number. These days through SPICE form Companies get PAN along with Incorporation Certificate.
Therefore, No need to apply PAN after Incorporation of Company.
2.Maintenance of Documents of Incorporation of Company.
As per Section 7(4) The Company shall maintain and preserve at its registered office copies of all documents and information as originally filed at the time of incorporation till its dissolution under this Act
Works required to be done within 30 days of Incorporation:
3. Maintenance of register office of Company.
As per Section 12(1) “A company shall, within 30 days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.”
As per Section 10A (1) (b), Company have to file declaration of ‘verification of registered office in form 20A’.
Company has to mention following details on Board of Registered Office of Company: Section 12(3) (a):
4. Maintenance of Letter Heads of Company.
As per Section 12(3) (c), every company shall get printed in all its business letters, billheads, and letter papers and in all its notices and other official publications:
5. Appointment of First Auditor of Company u/s 139.
As per Section- 139(6) – The First auditor of company shall be appointed by the Board of Directors within 30 (thirty) days from the date of registration of the company. For Appointment of first auditor it is required to hold Meeting of Board of Directors of Company.
Note: Complete editorial on Process of appointment has been published on following link:
6. Holding of First Board Meeting of Company.
As per Section- 173(1) – Every company shall hold the first meeting of the Board of Directors within 30 (thirty) days of the date of its incorporation.
Note: Complete editorial on holding of First Board Meeting along with drafts shall be published in upcoming editorials.
Works required to be done within 30 days to 180 days of Incorporation:
7. Issue of Share Certificates.
As per Section- 56(4)(a) – As per Section- 173(1) – Every company shall With in a period of 2 (Two) Months from the date of Incorporation issue share certificates to the subscriber of Memorandum.
Note: Complete editorial on Share Certificates has been published on following link:
8. Open Bank Account of Company.
As per Point No. 7 Company has to issue share certificate within 2 months of incorporation of Company. In general Company will issue share certificate after receipt of subscription money and money shall be receive in Bank Account of Company.
Therefore, Company has to Open Bank Account of Company after incorporation for receipt of subscription money and to bear the day to day expenses of Company.
9. Payment of Stamp Duty on Share certificates to State Government.
According to Indian Stamp Act, 1899, the Company shall pay the stamp duty within 30 (thirty) days after the Issue of Share Certificate.
10. Declaration of Commencement of Business.
Every Company incorporated after 02.11.2018 required:
11. Regularization of First Director.
As per Section 152(1), First Director shall be appointed by Article of Association of Company and as per Section 152(2) every Director shall be appoint by shareholders in General Meeting.
Therefore, First Director of Company is required to regularize in the General Meeting of Company.
(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at firstname.lastname@example.org)