Compliance for newly opened Private ltd companies under companies Act 2013

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Compliance for newly opened Private ltd companies under companies Act 2013

 In India, every company requires to Comply with various act, especially with the Companies Act. It is very crucial part for companies to avoid Penalties and legal consequences.

 If you received Certificate of incorporation for a private limited company, it means you cleared your last   step in the process of incorporation. Once you received the certificate of incorporation, it means, all legal formalities required for company registration are completed in India.

What are next steps for companies after incorporation?

  • Appointment of Auditor
  • First Board meeting
  • Disclosure of interest by the directors
  • Issue of share certificate
  • Payment of Stamp Duty on Issuance of Share Certificate
  • Professional Tax Registration of Company and its Directors
  • Obtain Registration under Shops and Establishment Act
  • Maintenance of Statutory Registers
  • Developing of Accounting System for the Company

1.Appointment of the of the Auditor:

  • As per Section 139 of the Companies Act, 2013 every company is required to appoint its 1st Auditor within 30 days from the incorporation of the company
  • Director will appoint the Auditor in its Board meeting
  • If fails to do so then requires to call extraordinary meeting of the Shareholders & they will appoint the Auditor.

2.First board meeting:

  • The first board meeting is very crucial, in the meeting various decision are required to be taken by the directors like Appointment of Directors, Disclosure of interest etc.

3.Disclosure of interest by the directors:

  • According to sec 164 of the companies act, every director of the company will be required to disclose their concern or interest in other companies or bodies corporate, firms or other associations of individuals and declare that directors are not disqualified
  • Such disclosure also includes directorship & shareholding also.

4.Issue of share certificate:

  • Every company is required to issue share certificate to the subscribers of the memorandum within 60days from the incorporation.
  • If company is fails to do so then heavy fine is attracted on both  the company & directors

5.Payment of Stamp Duty on Issuance of Share Certificate:

  • Every company is required to pay stamp duty according to rate of law prevail in each state.
  • The rate of stamp duty & its payment will differ from state to state.
  • However, in most of the state, the stamp duty payable is 0.1% of the market value of the shares.

6.Professional Tax Registration of Company and its Directors:

  • In some states, there is provision on the company that company should pay professional tax of its employees according to law & rate of each state.
  • To comply with the law, company is required to registration under both the acts PTRC & PTEC and obtain the necessary number .

7.Obtain Registration under Shops and Establishment Act:

  • For controlling to shop & establishments, every state either passed its own law or adopted other states laws, for working hours, basic facilities to be provided to the employees etc
  • Every company is liable to obtain registration under the above law within 30days from the date of incorporation.
  • Failing to above may be treat as criminal act.

8.Maintenance of Statutory Registers:

  • Every company is under obligation to maintain various register under Section 85, Section 88 etc. of the Companies Act, 2013
  • Such various register are require to keep and maintain at its registered office in the prescribed form
  • Any failure in maintaining the statutory register is an offence for which company as well as directors may be fine and prosecuted.

9.Developing of Accounting System for the Company:

  • In section 128 of the companies Act, it is specified that every company needs to maintained the books of account with the double entry system  & to be preserved for eight financial years.
  • The accounts need to be maintain at the registered address of the company or at any other place where directors decide under intimation to ROC.
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