Post-registration compliance for a newly registered company in India

 Post-registration compliance for a newly registered company in India 

1. First Board Meeting

  • Timeline: Within 30 days of incorporation.
  • Key Agenda:
    1. Appointment of the first statutory auditors of the company.
    2. Disclosure of interest by directors in Form MBP-1.
    3. Approve opening of a company bank account.
    4. Adoption of the Common Seal, if applicable.
    5. Authorizing the issue of share certificates.

2. Filing Form ADT-1: Appointment of Auditor

  • Timeline: Within 15 days of the first board meeting.
  • Purpose: To notify the Registrar of Companies (ROC) about the appointment of the first statutory auditor.
  • Who Appoints: The Board of Directors (for the first year).
  • Validity: The appointed auditor will hold office until the conclusion of the first Annual General Meeting (AGM).

3. Share Certificates Issuance

  • Timeline: Within 60 days of incorporation or allotment of shares.
  • Key Steps:
    1. Prepare share certificates.
    2. Ensure certificates are properly stamped as per the Stamp Act.
    3. Deliver the certificates to shareholders.
  • Authority: Share certificates must be issued under the authority of the Board of Directors.

4. ESIC Declaration (if <10 employees)

  • Applicability: Not mandatory if the company has less than 10 employees (threshold may vary by state).
  • Steps (if applicable):
    1. Obtain ESIC registration number.
    2. File employee declaration forms.
    3. Comply with monthly ESIC contributions.

5. Filing Form INC-20A: Commencement of Business

  • Timeline: Within 180 days of incorporation.
  • Applicability: Mandatory for all companies incorporated after the Companies (Amendment) Ordinance, 2018.
  • Purpose: Declaration confirming:
    1. Subscribers have paid their subscription amount.
    2. The company has a valid bank account.
  • Penalty for Non-compliance:
    • Company: ₹50,000.
    • Directors: ₹1,000 per day of default (up to ₹1,00,000).

Additional Considerations:

  • GST Registration: Mandatory if turnover exceeds the prescribed threshold or if the business is involved in interstate supply.
  • Professional Tax (PT): Required in states where PT is applicable.
  • Shops & Establishment Act Registration: Needed as per the state laws.
  • PF Registration: Mandatory if employee count reaches 20 or more.

By complying with these requirements, your company will operate smoothly and avoid legal penalties.

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