31 Mar 2018

Post Incorporation compliance for a Company

Finance feed by:

CA Rahul Agarwal
B.com (Hons),CA
CA in Practice    •    15 Year 6 Month  experience

The newly incorporated Company has to follow various set of compliance related formalities which is time bound and must be completed to maintain compliance as per the Companies Act, 2013. Non-compliance of such could lead to various fines, penalties, litigation on the Directors and the other officers in defaults and as a whole the regular function of the Company would be hampered. Hence, it is important to follow various post incorporation compliance which are listed below to safe guard a company’s regular functioning:

1. Name Board: The Companies are required to affix the name of the Company and the registered office of the Company at every offices or places where company is carrying on the business.

2. Letterhead: The name and registered office address of the company must be printed on all letterhead, invoices, notices and other official documents of the company. The letterhead of the company can be prepared as it would be required for the opening of bank account.

3. Share Certificates: Company must deliver share certificates to all the subscribers of the company within a period of two months from the date of incorporation. Hence, post incorporation of the company, the subscribers to the Memorandum of Association of the Company would deposit the money for the shares agreed to be purchased and take share certificates of the company in return.

4. Statutory Register: All companies are required to maintain a statutory register for the company containing information like register of members, list of directors, charges, debentures and other matters pertaining to the shareholders and management of the company. The Statutory Register must be regularly updated and kept at the registered office of the company.

5. Opening the Bank Account: Company have to open the Bank account in the name of the Company for running various transactions. One have to follow the Norms as per RBI for opening the Bank Account, deposit the cheque received from each subscriber in the newly opened Bank Account.

6. Appointment of the Auditor: After incorporation of a company, the Board of Directors of the Company are required to appoint the first Auditor of the Company, a Chartered Accountant within 30 days of incorporation. In case the Board of Directors fail to appoint an Auditor, then members of the Company must be intimated, who in turn can appoint an Auditor within 90 days of incorporation of the Company, The first Auditors of the Company will hold office until the completion of the first annual general meeting and would be eligible for re-appointment at the end of their term in office.

7. Receive Disclosures from Directors: The Company in its 1st Board Meeting have to disclose the interest of the Director in the Company where he is either directly or indirectly holds any interest in the Company.

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