Finally, You are your own Boss! Heartiest congratulations on the new business venture that you have started.
So now it is important to follow risk governance and compliances of standards set by law. The act of compliance plays a vital role in every business whether it is big or small. Every failure to comply with the law brings serious consequences and will fall heavily on your pockets too. So, to avoid any such things we are there for your rescue as we are constantly working towards the highest level of compliance possible. AS IT IS RIGHTLY SAID THAT ‘DILIGENCE IS THE MOTHER OF GOOD LUCK’.
Glance on compliances that need to be done immediately after Incorporating a company:
Holding First Board Meeting
Every Company shall hold its first board meeting within the time limit specified as per Companies Act, 2013 read with Secretarial Standards issued by ICSI. Call meeting in order where board shall discuss and approve for the following resolutions with or without addition:
- To take note of Certificate of Incorporation (COI)
- To take on record the printed copy of Memorandum & Articles of Association
- To fix the financial year of the Company
- To adopt the common seal of the Company
- To approve preliminary expenses and ratify the preliminary contracts
- To approve for making application for taking registration under GST, PAN, TAN and other departments company would be dealing with (if not applied at the time of incorporation under spice+)
- To open current Account of the Company for the financial dealings of the Company.|
Disclosure of interest by the Director(s)
Every director shall at the first board meeting disclose his concern or interest in any company or body corporate or firm or any other association as per Companies Act,2013 read with Companies (Meetings of Board and its Power) Rules,2014.
Appointment of First Auditor
The Board after considering the qualification, experience and on merit shall appoint first auditors of the Company to hold office till the conclusion of first Annual General Meeting(“AGM”)on such remuneration as fixed by the Board of Directors as per Companies Act,2013 read with Companies (Audit and Auditors) Rules,2014.
Issue of Share Certificates
Every Company shall issue share certificates to all its shareholders who are the subscribers of the Memorandum of the Company within time specified under Companies Act, 2013 read with Companies (Share Capital and Debenture) Rules, 2015.
Payment of Stamp duty
Pursuant to Stamp Act, 1899 stamp duty shall be paid on Share certificates issued to subscribers and to any person to whom share certificate will be issued after allotment within time specified under said provisions. And in case of delayed, non-payment 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. The rate of stamp duty at the time of issue of share certificate is 0.005%. And stamp duty shall be calculated on the price at which shares are issued. This is a most vital compliance needs to be done by the company after incorporation and it is the most missed compliance by most of the companies which later result in heavy penalties to the company by stamping department.
Declaration of Commencement of Business
Company having a share capital shall not commence any business or exercise any borrowing power unless a declaration with respect to receipt of payment from subscribers is filed by a director within time specified in Specified form as per the Companies Act,2013 read with Company (Incorporation) Rules, 2014 and the contents of the said form shall be verified by Company Secretary or a Chartered Accountant or Cost Accountant in practice. Provided that in case of a Company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India (RBI), SEBI etc., the registration or approval, as the case may be from such regulators shall also be obtained and attached with the declaration.
Affix Company Name Board
As per the Companies Act, 2013 every Company shall affix or paint its name, address of its registered office outside of every office or place in which its business is carried on.
Holding Subsequent Board Meetings
Holding of minimum four Board meetings in every year and not more than 120 days gap should be there between two meetings. And For OPC, Dormant Company Small Company, and Start-up Private Company to hold minimum two meetings in each half of calendar year with minimum gap of 90 days.
So, this is evident to say that it is a must to comply with the law otherwise, you could leave your Company at risk and can cause damage to all the hard work you did to set up your business. So for every Company once registered, legal compliance is of prime importance and we being Company Secretaries are there to help you to complete those compliances on time. There is a requirement of engaging a professional to make your company Compliance oriented, mere incorporating a company is not enough, there are post incorporation compliances that need to be carried out by every Company and We being COMPANY SECRETARIES help our clients to be compliance oriented and keep on guiding them related to annual compliances required.