After obtaining the company registration in India there are certain requirements that every company is required to fulfill. Failing to meet the requirement specified may result in levy of hefty penalty and fines.
Have you successfully incorporated your business? Do you think your job is done is now? Just acquiring the registration for your business is not enough. There are certain compliances requirements as prescribed under Companies act 2013 which every form of company is required to fulfill. With company registration, the entrepreneur gets the power to undertake his business activities. However, just like with every great power comes great responsibility the power of company registration also comes with certain responsibilities. In order to ensure that companies incorporated are working in a rightful manner without the involvement of any forgery certain compliances is prescribed under Companies act 2013.
Complying with these compliances also assist the company to ascertain its current position and discover any loopholes in its functioning. Also if a Company fails to comply with the compliance requirement then it will be penalized by the government.
Today through this article we will provide you the comprehensive list of things you should do after obtaining the certificate for incorporation-
1. Display of Corporate identity number (CIN)
• The very first thing that every company is required to do is to fix a board outside the registered office of the company. This board shall contain details like the name of the company and the registered address of the company. The information printed on the board shall be in the English language and the regional language.
• Moreover, it should be ensured that every letterhead and invoice of the company contain the full name of the company along with the registered address of the company, telephone number, corporate identity number, and E-mail ID. The name shall be printed in Header and CIN No, Add to the registered office and Email id of the company in Footer.
• Further, in case the company has an official website then it shall contain the following information about the company on its landing or home page.
• Name of the company
• Address of its registered office
• Corporate Identity Number
• E-mail Address and
• Name of the person who may be contacted in case of any queries or grievances.
Penalty – Every company failing to comply with the requirement will be fiend with the penalty of Rs 1,000 per day and every officer at default, for every day during which such default continues, up to a maximum limit of Rs. one lakh.
2. Appointment of Auditor
This is one of the most important compliance that should be fulfilled by every company. Within 30 days of receiving the certificate of incorporation, every company is required to file ADT 1 for the 5 years appointment of Auditors. In case the board of directors is not able to make the appointment within the specified time the members of the company must intimate in this regard. Further, the members will appoint the auditor within 90 days. Auditor once appointed will hold the office until the conclusion of the first annual general meeting of the company.
3. Acquiring PAN and TAN of company
Permanent Account Number (PAN) is a unique alphanumeric 10 digit that is issued by the income tax department in India. This number is used to track all the details of the applicant. The PAN number is mandatory to open the bank account of the company. Thus, it very important for every registered company to obtain its PAN number from the department. PAN number can be simply obtained by making an online application.
Opening Company bank account
The opening bank account is also an important compliance requirement post incorporation of the company. According to the Know, Your Customer (KYC) norms prescribed by the reserve bank of India every company desiring to open a bank account is required to submit following documents –
• Copy of Certificate of incorporation and Memorandum & Articles of Association self -attested
• The resolution passed at the board meeting to open the bank account for Company
• Copy of PAN allotment letter
• Copy of the telephone bill
The company seal shall be affixed on all the documents submitted.
Issuing share certificate
Companies Act 2013 makes it mandatory for every to allot and deliver the share certificates to all the subscribers of the memorandum within 2 months of the date of incorporation. Moreover, every subscriber is required to submit the subscription money in the bank account of the company.
Maintaining statuary registers
It is mandatory for every company to maintain various statutory registers and records as required by the Company law. Below-mentioned are some of the registers and records which are required to be maintained-
• Register of shares
• Register of Members
• Register of Directors etc.
• Incorporation documents of the company
• Resolutions of the meetings of the Board of Directors
• Minutes of the Board Meetings and Annual General Meeting etc