Post Incorporation Mandatory Compliances
After Incorporating a Private Limited Company / Limited / OPC etc. in India, there are several post-incorporation compliances that need to be adhered to. It's essential to comply with these to ensure that the company operates in accordance with the legal and regulatory framework. Here are some key post-incorporation compliances for a private limited company in India:
- Obtain Certificate of Commencement of Business
- Issuance of Share Certificates
- Appointment of First Statutory Auditor
- Open Bank Account of Company
- Secretarial Compliances / Board Meetings
Obtain Certificate of Commencement of Business:
The Commencement of Business Certificate is a crucial document and essential requirement in all the companies. This certificate serves as proof that the company has met all the legal prerequisites, signalling to stakeholders, clients, and investors that the business is officially operational and adhering to regulatory standards. In other words, company is ready to commence its business operations.
Within the meaning of Section 10A of CA (Amendment) 2019 w.e.f. 02/11/2018 Every Company must file a declaration with the Registrar of Companies with in 180 Days, of registering company, in form INC-20A and reflecting through bank statement that every subscriber to to the Memorandum of Association has paid the value of the shares agreed to be taken by him on the date of making such declaration. But we strongly recommended to get this Certificate issued within 30 Days of incorporation of company to avoid irregularities in other provisions.
As per rules INC -20A Must be verified by a professional person consisting Chartered Accountants / Company Secretary / Cost Accountants in practice. Delaying leads to heavy penalties and ultimately leads company to closure side.
Obtaining a Commencement of Business Certificate need to submit relevant documents Like Resolutions, Bank Statement reflecting Share Capital Money deposited by Promotors of Company, Certificate of Incorporation and other relevant Documents.
Issuance of Share Certificates:
Issuing share certificates only after receiving share application money, as stipulated in the Memorandum of Association (MOA), is a crucial practice in Private Limited Companies.
The process involves potential shareholders submitting their share applications money in bank account of Company. Once the company receives the payment, it issues share certificates, confirming the shareholder's ownership.
Share Certificate Contains following Details:
- Company Details
- Shareholder Information
- Share Distinctive Numbers
- Share Certificate Number
- Date of Issuance
- Authorized Signatures
- Seal of the Company
Appointment of First Statutory Auditor:
In accordance with Company Act 2013 provisions, the appointment of the First Auditor must be done within 30 days of company incorporation. The Board of Directors are liable to appoint the first auditor to scrutinize the financial affairs of the organization.
The Auditor Appointment is Mandatory in all the Private Limited Companies / Limited Companies / Section -8 Companies and One Person Companies (OPC) even you have not any Transactions or Sale Purchase.
Appointment of Auditor involves a certain process comply with the Companies Act 2013. Which includes, obtaining consent and a certificate of eligibility from the chosen auditor, ensuring they meet the statutory qualifications. It is crucial to note that the first auditor's term concludes at the first annual general meeting (AGM) where shareholders have the opportunity to ratify or replace the appointed auditor.
Open Bank Account of Company:
Opening a bank account in name of Private Limited Company / Limited Company / OPC etc. is must to deposit share application money.
Bank account opening process for a private limited company typically involves providing a set of documents and information. We will help you in gathering information and documents.
Here is a general list of documents that are commonly required:
- Certificate of Incorporation
- Memorandum and Articles of Association
- Board Resolution for Opening Bank Account
- KYC Documents for Directors and Signatories
- PAN Card
- Address Proof of the Company
It's important to contact the bank where you intend to open the account to get specific details about their requirements and procedures. Additionally, the documentation process may differ based on local regulations and the bank's internal policies.
Secretarial Compliances / Board Meetings:
Running a private limited company involves various secretarial compliances to ensure legal and regulatory adherence. We will provide common secretarial compliances for your company to open bank account, issue share certificates, getting commencement of Business Certificate etc.