As important are the steps to be followed before and during the incorporation of a Company, certain steps are to be complied with after incorporating the Company.
The following are the compliances that must be adhered to by a newly incorporated Company.
After incorporation, the first step is to appoint an auditor or an audit firm. As per the law, the Company must appoint an auditor within 30 days from the date of incorporation in a Board Meeting. If the Board is unable to appoint, then auditor has to be appointed within 90 days at an Extraordinary General Meeting of the members of the Company.
If the above step is not followed as per the timeline provided by the Government, the Company will be fined and members of the Company will be punished to imprisonment.
The newly formed Company must open a bank account in the name of the Company with the help of supporting documents such as Memorandum or Articles of Association and Certificate of Incorporation. It is where all the transactions of the Company will be undertaken and tracked.
As the Company now stands as a separate legal entity, it is mandatory to apply for PAN and TAN. This simply signifies that the Company is registered under Income Tax Act.
A private limited Company post the incorporation has to first open a bank account in the name of the company to comply with this. The subscribers to the Memorandum of Association are required to deposit subscription money of shares as agreed in company's bank account either through cheque or net banking. Every company is required to allot and deliver share certificate to all the subscribers to the Memorandum of Association within 2 months from the date of Incorporation.
Service tax is required if you are into business of providing services and once the turnover exceeds Rs. 9 lakhs annually. Service tax levied is deposited to the government account on monthly or quarterly basis. Every Company must falling under this category must register for Service Tax after it has been incorporated.
Every Company should maintain a defined Statutory Register of the Company from the time of incorporation. It is not only a significant part of compliance but it also assists to keep all the statutory records enacted.
The other compliances can be followed once the above important compliances for a smooth running of the business