Compliances for Newly Incorporated Private Company
PrintListen to this Article
Compliances for newly incorporated Private Company
Second Compliance
Open a Bank Account.
Every newly incorporated company shall in its first board meeting pass a resolution to open an Account in name of the Company in order to receive money from subscriber and start its operation.
Must pass resolution within 30 days from the date of incorporation.
Third Compliance
Appointment of statutory Auditor.
Every newly incorporated company shall in its first board meeting pass a resolution to Appoint Statutory Auditor of the Company.
Must pass resolution within 30 days from the date of incorporation.
Fourth Compliance
Allotment of Securities and Issue of share certificate.
Every company shall, deliver the share certificates of all securities allotted to subscribers to the memorandum within a period of two months (2 months) from the date of incorporation.
Penalty for non-compliance: If allotment is not done within 60 days then refund the whole application money within next 15 days.
If not refunded, then refund application money along with interest @12% p.a. after the expiry of 60 day.
Fifth Compliance
Stamping of share certificate.
Time limit for payment of stamp duty without delay is 30 days from the date of issue of share certificate.
Penalty for non-compliance: In case of non-payment of stamp duty or evasion of payment of stamp duty on the issue of share certificate in case of allotment of share, the company shall be liable for heavy penalty under the Act, which may extend to 10 times of the duty.
Sixth Compliance
Filing of e-form INC-20A.
Every Company shall file E-form INC-20A within 180 days from the date of Incorporation.
Company shall not commence business or exercise any borrowing power without filing of E-form INC-20A.
Penalty for non-compliance: The Company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, initiate action for the removal of the name of the company from the register of companies.
Seventh Compliance
Minimum Board meetings.
Every Company shall hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board.
Penalty for non-compliance: Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees.
Eight Compliance
A company shall hold its first AGM within a period of nine months from the date of closing of the first financial year of the company.
Penalty for non-compliance: Compounding of Offence.
Ninth Compliance
Annual Filing.
Company has to file form AOC-4 for Balance Sheet and Statement of Profit and Loss within 30 days from the date of Annual general Meeting and form MGT-7 for Anuual Return within 60 days from the date Annual General Meeting.
Penalty for non-compliance: Late filing fee of Rs. 100 per day per form.
Tenth Compliance
Maintenance of Statutory Registers
Company has to maintain certain registers as prescribed under the act like Register of Members in form MGT-1, Register of debenture holders/ other Securities holders in form MGT-2, Register of Charges in form CHG-7, minute book, etc.
Penalty for non-compliance: the company shall be liable to a penalty of twenty-five thousand rupees and every officer of the company who is in default shall be liable to a penalty of five thousand rupees.
If a person is found guilty of tampering with the minutes of the proceedings of meeting, he shall be punishable with imprisonment for a term which may extend to two years and with fine which shall not be less than twenty-five thousand rupees but which may extend to one lakh rupees.
Category : Corporate Law | Comments : 1 | Hits : 3165
Introduction The practice of a company keep track of its financial transactions is as old as trade itself. The upkeep of precise books of accounts has been vital for the long-term prosperity and viability of businesses, going back to the days of barter systems and continuing into today’s complex financial systems. This essay will examine the importance of books of accounts and all of the benefits they provide to companies of all kinds. What are Books of Accounts? The s...
Introduction In India, registering a company is a complex procedure. A company’s incorporation process involves a number of officials, including chartered accountants and company secretaries. These individuals make a significant contribution to the company registration procedures available in India. However, one such entity is frequently overlooked during the incorporation process. It can be easy to overlook the Company Registrar who issued the registration certificate in these si...
Introduction Due diligence is an inquiry or audit conducted before a transaction, such as an acquisition, investment, business partnership, or bank loan, to guarantee compliance with financial, legal, and environmental reports in order to register a company in India. The outcomes of all these inquiries and audits will be collected into a Due Diligence report. For startups in India, conducting due diligence about the company is important during the investment stage. To guarantee complian...
Introduction India is a country that attracts a lot of private equity and foreign direct investment (FDI) due to its rapid expansion. India has the second-largest population in the world and a wealth of skilled IT workers, which makes it an appealing destination for investment from foreign businesses and individuals. This article will explain why establishing an Indian subsidiary is not as tough as you may believe. In this article, we will also include information on What is an Indian S...
The mandatory dematerialisation requirement is applicable on all securities of every private company, excluding small companies and government companies. The provisions are applicable with immediate effect, and a timeline of 18 months is provided from the closure of the financial year in which a private company is not a small company for the compliance with the mandatory dematerialisation requirements. For example, a private company (other than a company that is a small company as on 31st Marc...
Comments
FRANCIS JOSEPH
28-Mar-2020 , 10:20:39 amExcellent information. Thank you