Compliance requirements for a private limited company begin right away (within the first 30 to 90 days following incorporation). Team Vakil Search has attempted to record the following compliance requirements:
Registered Office Address
It’s not required (and even preferable) to not list an address for the Registered Office in filling out the SPICE for incorporation. The company must submit form INC-22 to the Registrar of Companies (RoC). The filing must be completed within 30 days of the date of incorporation. (As per Section 12)
Initial Board Meetings:
Board members should organize at least the first board meeting during the first thirty days, as per Section 173 of the Companies Act 2013, 2013. Agenda and notice must include the following elements:
- Format of the letterhead
- Appointment of the first Statutory Auditors -Term will run to the date of the annual first general shareholder’s meeting.
- Form for disclosure of interest MBP-1
- Bank of choice for opening an account for the company’s current balance
- Issue of shares in addition to the certificate of shares
Within sixty days of integration, your Board of Directors will issue shares to the first subscribers to the Memorandum of Association. The format of the share certificate follows the format of the form SH-1. (Company must pay the appropriate stamp duty on shares certificates)
Certificate to start a business:
Ministry of Corporate Affairs reinstated a requirement for starting a business in 2019. Even a private limited business has the requirement of obtaining a certificate before they can begin a business. To do this, the business must satisfy two conditions – Subscribers must deposit the initial amount, and the registered office address must be confirmed. This procedure should be completed within 180 days of the date of incorporation.
The name board isn’t to be disclosed. It’s a requirement to comply with the Act. Private limited companies have to display their nameplate in the vicinity of their registered office.
PAN, TAN, and registration on the site for income tax
According to the current procedure of SPICE incorporation, The MCA provides PAN and TAN along with the certificate of incorporation. The company must make an account available for the income tax filing portal. The company must also register with the most important persons and the person who is authorized to sign. The person authorized to file tax returns must register their digital signature on the portal for e-filing.
You should also read: How to register a company
Digital Signature on the portal for e-filing.
Other local and state-level registrations Local-level and other mandatory and desirable registrations are required, such as Professional Taxes and Trade Licenses or Shop Establishment. Check the registrations here.
The Corporate, The Compliance Department of Team Vakil Search has a well-established process to deal with the much but essential compliance for a newly formed private limited company. To reduce the costs associated with compliance, it is advised to comply with the below-mentioned requirements as soon as you can follow incorporation. We can help all newly formed companies.
1) Certificate of incorporation
2) First Board Meeting
Every company must have a meeting of the Board of Directors within 30 days of incorporation.
3) Bank Account
The company must have a bank account before contacting the authorities to incorporate the company. In addition, subscription funds need to be transferred to the account. Because the company is a fake entity, its transactions cannot be conducted under the name of a natural person.
4) Registration Office Address
Every business must have an official registered office and report that registered office address to the registry within thirty calendar days from the day of incorporation. The address is used to receive all official communications from various authorities.
5) The Board of Directors of the Company
The company’s board must signify its name on every location where it conducts its business. The company’s board should include details such as the company’s name and the Corporate Identification number, email address, and the registered office address and contact number. The board must be displayed in the language commonly spoken in the area. In addition, the business has to obtain a seal that has its name inscribed upon it—letterheads bearing pertinent information and printed negotiable documents.
The initial auditor is appointed by the Board of Directors within 30 days of the business’s incorporation date. If not, the shareholders must nominate their auditors within 90 days following the extraordinary meeting. The duration of the first auditor is until the conclusion at the beginning of the annual general assembly. (ADT-1).
7) A First Board Meeting with the Board of Directors
It should occur within 30 days of company incorporation. Then the total number of Board meetings must be scheduled in one year.
8) Resident Director’s appointment:
Every business must nominate at the very least one director who has been in India for at least 182 days which equals approximately six months in India within the preceding calendar month. To appoint every director, KMP DIR-12 needs to be submitted.
Signed by a director, and it serves as a piece of written evidence for the disqualification disclosure. The director must present the director before his appointment or renewal.
10) Disclosure of Interest
At the first board meeting, every director shall disclose their interest in any company/firm/body corporate/association of individuals as outlined in section 184(1) of the Companies Act 2013. Any changes to the disclosures must be communicated to the board at the first meeting of the financial year.
11) Statutory Registers
The company must maintain legal registers at its registered business offices. These registers must remain in the format prescribed, and if not, the company will be penalized. If necessary, the company shall share the format of the records.
12) Share certificate issue
within two (2) months after the day of incorporation to members to the Memorandum.
13) Books of Accounts
Each company must keep proper books of accounts that provide a fair and accurate perspective of the business’s financial position. Double-entry systems must be observed, and accounting is performed accrual-based.
14) Beginning of business
The company must be granted a certificate of the commencement of business by submitting an INC-20A e-form within 180 days of incorporation. In addition, there is a requirement that the company submits a bank statement proving that each subscriber has paid an amount needed to purchase shares.
15) Conduct board-level meetings
Four board meetings must be conducted throughout the year. Additionally, the duration between meetings must not exceed 120 days. However, there is an exception in the case of small-scale start-ups that are part of private limited companies. The exception is that instead of four board meetings, directors are permitted to hold a minimum of two board meetings. The notice for the board meeting should be given to every director of your Private Limited Company at least seven days before the meeting date. The meeting-Make sure to keep the notice, the agenda notes, the confirmation of attendance, minutes, proof of dispatch notice, etc.
A copy of each resolution (with an explanation in the event of one) or agreement for the specific issues to be submitted together with ROC on Form MGT-14 within 30 days.
Articles of Company should contain a copy of the resolution affecting changes to AOA and agreements referred to by Section 117(3) of the Act
16) Conduct AGM
Document MGT-7 (Annual Return) and AOC-4 (financial statement)-Director’s report.
17) The company directors need to be registered for DIN eKYC (or DIR-3 KYC)
DIR-3 eKYC directors must have a personal mobile number and individual email address. There is a fine of Rs. 5000 in the event of failing to submit DIN eKYC.
18) MSME-1 Form:
Every company that has outstanding payment dues to small and micro enterprises and if the payment is delayed for more than 45 days, the company has to provide specifics following the following timeframe:
- For April to September by 31st October
- For October to March by 30th April
All the Company has an outstanding loan or amount as of 31st March of each financial year is required to provide information and a bifurcation for the outstanding amount, irrespective of the fact that the amount falls within what is termed a deposit before the 30th day of June.