Pre & Post Compliances
After incorporating company there are various compliances which needs to be done. Without proper compliances company may be at default which can also make it inactive. The management should be fully aware of pre and post compliances to avoid any sort of penalties or punishments. Management must follow Companies Act 2013 for every compliance, which is also a stringent act and leaves no room for any mistakes. Thus, the directors and shareholders must be aware of legal compliance involved in pre and post incorporation of company.
Now understanding the significant actions that needs to be taken in pre incorporation of company.
Generally, pre incorporation involves collection of data required for incorporating company. This involves:
- Understanding the capability of individual for becoming director or shareholders.
- Checking availability of name of company and finalising the same.
- Availability of all KYC Documents.
- Finalisation of registered address etc.
Pre incorporation have very few requirements as compared to post incorporation. Some of the significant post incorporation compliances are:
- First Meeting: As per Section 173(1), of The Companies Act 2013, the company shall hold a meeting of the Board of Directors in less than 30 days from the date of its incorporation. Directors are permitted to attend the meeting either in person or through video conferencing.
- Bank Account: After incorporating a company and all legal documents are available it is mandatory to open a bank account. Form INC 20A must be filed within 180 days of incorporation of company. Bank Statement must be attached with this form wherein share capital must be reflected therein.
- Registered Address: As per Section 12(1), a company shall have a registered office within 30 days from the date of incorporation. This address shall be used to receive all official communication from the various authorities. The company shall inform the same to the registrar within 30 days from the date of incorporation.
- Auditor: According to Section 139(1), the first auditor shall be appointed by the Board of Directors (BOD), except for a government company, within 30 days from the time the company is registered. Failing which, the members shall appoint the auditor within 90 days at an extraordinary general meeting. The term of the first auditor shall be until the conclusion of the first annual general meeting.
- Interest Disclosure: At the first board meeting, every director shall disclose his interest in any company/firm/body corporate/association of individuals as outlined in section 184(1) of the Companies Act 2013. Any changes in the disclosures shall be intimated to the board in its first meeting held during each financial year. An independent director, if any, must give a declaration that he meets the criteria of independence during the first board meeting as a director.
- Statutory Registers: The company shall be required to maintain statutory registers at the registered office of the company. The same shall be maintained in the prescribed form failing, which the company will be subject to penalties.
- Share Certificate: The share certificate shall be issued to a shareholder within 60 days from the date of incorporation. In case of additional shares being allotted, the time is taken as 60 days from the date of allotment.
