Post-incorporation formalities / requirements which are to be followed mandatory by companies
1. Appointment of Statutory Auditor
Pursuant to section 139, the first auditor of the company, (who is Chartered Accountant), shall be appointed by the Board of Directors within thirty days (30 days) from the date of registration of the company. Such auditor shall hold office till the conclusion of the First Annual General Meeting.
2. Disclosure of Interest of Directors
Pursuant to section 184, every Director shall, at the First Board Meeting of the Company and at each such First Board Meeting held in a financial year, discloses to the Board his interest in other entities. The Board shall take note of the same.
3. Opening a Bank Account
To open a bank account, as per the bank’s policy, you may need to submit the PAN and Certificate of Incorporation along with the documents required.
4. Allotment of the securities
Pursuant to section 56, every company shall, deliver the certificates of all securities allotted (after paying requisite Stamp Duty), transferred or transmitted within a period of two months (2 months) from the date of incorporation, in the case of subscribers to the memorandum.
Therefore it is mandatory to open a Bank account and after opening of company’s Bank Account, each subscriber to the memorandum of association should deposit the amount of subscription money of the shares agreed to be taken by him from their respective account in the company’s Bank account by individual cheque or online.
5. Commencement of Business – (Newly inserted on 2nd November 2018)
This compliance is newly added by MCA. Every company before starting its business or exercising its borrowing powers must file form INC-20 A for the declaration of commencement of business. This form is to be filed within 180 days from the date of incorporation of the company. It is applicable to all companies having a share capital and which is incorporated on or after 2nd November 2018. There are strict consequences of non-filing of this form which are as under:
· Late filing fees levied by MCA, if a form is not filed in 180 days of incorporation
· A Penalty of Rs.50,000/- to the company
· A Penalty of Rs.1000/- per day to the director
· MCA may remove the name of the company from the registeompanies.
6. Intimation of Registered Office Address
If the company has not provided an address for the registered office during the registration process, the company must inform the Registrar about it. The intimation of the address must be filed within 30 days from registration and in e-form INC – 22.
7. Other Registrations
a. Application for Shop Act license (as per Shop and Establishment Act) (If applicable)
b. Any other activity specific registrations
8. Corporate Stationary
a. paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and of the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;
b. get its name, address of its registered office and the Corporate Identity Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, bill heads, letter papers and in all its notices and other official publications
9. List of Stationery Items:
a. Common Seal (Optional)
b. Statutory Register (Mandatory)
c. 2 rubber stamps – One round stamp in the name of company and another for the Director)