What Companies Act says after incorporation of a Company

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What Companies Act says after incorporation of a Company

Once you incorporate your private limited company, then it does not mean that your work is over because there are still so many compliances that have to be done immediately after incorporation of the company.

Therefore, through this write-up, we shall educate the young entrepreneur with respect to the post-compliance work which is required to be done under the companies act.

The followings are a few of the compliances which are required to be done:

1. Appointments of statutory auditors:

As we are all aware that there is a mandatory audit requirement under the companies act. Therefore, you have to get your accounts audited regardless of turnover or profit, or loss. Since the audit is done by the auditor, therefore, the appointment of the auditor is the first requirement. Here, I categorically mentioned that only a person who earns a degree of a Chartered Accountant can become the auditor of the company.

Under the new companies act, there are some changes in the provisions to appoint auditors. So, be careful while appointing your auditor under the new companies act because most people are appointing the auditor as per the old companies act, of 1956. Under the new act, the board of directors of the newly constituted company has to appoint the auditor within thirty 30 days of incorporating the company. Since the board of directors takes every decision in the board meeting by board consensus therefore in this case you have to conduct the board meeting where the auditor is appointed till the conclusion of the first AGM. Then, thereafter the auditor is appointed for a period of 5 years or 10 years in the case of individuals or firms respectively.

2. Allotment of shares:

You must be aware that when you incorporated your private limited company or any other company then you must have signed the subscriber sheet wherein you confirm to purchase certain shares of the company. So, immediately after incorporating the company, you must deposit the requisite money to the company. In return for the money, the company allots you the shares of the company by issuing the certificate of shares which shall be the proof of your ownership in the company and make you a shareholder of the company. These shares certificates must be issued to the holder within 2 months from the date of incorporation of the company. But if the company makes a default in issuing the shares certificate then the company has to pay a minimum fine of Rs. 25,000/-.

3. Other Compliances:
4. Print your company letterheads but keep in mind to mention the following things on letterhead: Company Identification Number (CIN), registered office address, email id of the company, the website address of the company, if any, and telephone number.
5. Obtain company PAN and TAN.
6. Obtain sales tax and service tax registration numbers.
7. Start maintaining the statutory register. Statutory registers are like a record keeping of certain items e.g. Members register, Debenture holder register, Loan and investment made by the company, etc.

If you need any assistance in any of these areas, then you can contact Registrationwala.

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