30 Days Compliance After Incorporation Of Company (Need To Follow)
There are few Compliance that needs to be done in 30 Days after Incorporating a Company and few other that needs to be done mandatory whether or not in 30 Days. These compliance are very important to adhere to as they are regulated by Registrar of Companies and any violation will attract penalty and cause various problems.
In this Article, we have discussed all the points that are either mandatory or important to adhere to in 30 days. So let’s have a look at them.
Open Bank Account
Opening a Bank Account in Company’s name is perhaps the most important thing a Company has to do after incorporation. Though opening a Bank Account is not a legal compliance, but it is very important from the point of view of starting business. Without a Bank Account it is not possible to complete some of the compliances under Companies Act.
Introduction of Share Capital
Every subscriber of Private Limited Company has to introduce share capital within 60 days of its incorporation by way of cheque or online transfer. Shareholder holding shares worth less than rupees twenty thousand can introduce his share capital by way of cash. However it is not advisable to introduce share capital by cash.
Issue of Share Certificates
Company has to issue share certificates to all its share holders within two months of its incorporation. Share certificate is an evidence of holding shares by the shareholder. Non issuance of share certificates may attract penalty ranging from Rs. 25000/- to Rs. 500000/- to company. Directors of the company may have to pay penalty ranging from Rs. 10000/- to Rs. 100000/- for not issuing share certificates on time.
First Board Meeting of Company
First Board Meeting of the Company should be held within 30 days of company’s incorporation. Company should maintain minutes of meeting of all the board meetings and attendance register for its records.
Compliance related to stationery
As per the provisions of the Companies Act, all the companies are required to print its name, registered office address, Corporate Identity Number (CIN), telephone number, fax number (if any), email address and website address on all its visiting cards, letterheads, billheads, notices and all other official publications.
All the companies are required to file form INC 22 with the Registrar of Companies within 30 days of its incorporation if the same was not filed during the process of incorporation.
Appointment of Auditor
The Board of Directors must call a board meeting within 30 days of incorporation (refer point 4 above) and appoint First Auditor of the Company. If the Board of Directors of Company fail to appoint auditor within 30 days of incorporation, the shareholders of the company will have to appoint auditor within 90 days of incorporation by calling Extra-ordinary General Meeting. The tenure of the First Auditor of the Company shall be up to conclusion of First Annual General Meeting of the company.
Professional Tax Registration
It is Mandatory to register for Professional Tax if you are operating out of certain states where Professional Tax is mandatory.
If you are operating from your Registered address which you have mentioned at the time of incorporating your company then it is fine. But most of the time we tend to give our House address for this purpose and later on we rent a commercial premise where we start our business.
Hence registering this premise under Shop and Establishment Act is mandatory if you have more than 10 employees or more in Mumbai.
In the GST Regime, businesses whose turnover exceeds Rs. 20 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.
GST registration usually takes between 2-6 working days. We’ll help you to register for GST in 3 easy steps.