Initial Compliances for Companies - A Look
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- Track Your PAN: The first thing you must do is to track your PAN card and check the same has been applied or not the company from which you are taking the incorporation services. PAN is a mandatory document for anything. E.g. if you are a having a online business then you must be willing to apply for a payment gateway, but any gateway provider will not give you the service until and unless you have your PAN card.
- Apply for the bank Account: Many people are not aware of the fact that they can still open the bank account without having the Pan card. The mandatory documents for opening the bank account for the company are as follow:
- Certificate of Incorporation (COI)
- Memorandum of Association (MOA) and Articles of Association (AOA).
- PAN Card Acknowledgement (Proof that you have applied for it)
- Personal Documents of the directors
- INC 3 – Consent of Nominee (applicable in case of one person company)
- Others will be provided by the bank itself.
- Call the first board meeting: This is the first legal step which should be taken in respect by every director of the company within 30 days. Make sure you follow all proper procedure as laid down in the law otherwise meeting would not be considered valid. In layman terms, you may understand the procedure like as follow:
- Send 7 days prior notice to every director of the board for meeting specifying the date, time, place, agenda of the meeting etc.
- Make sure it reached every director and proper acceptance from them.
- For meeting to happen, make sure atleast 1/3rd of the total directors or 2 whichever is higher, should attend the meeting to make it a valid one.
- Proper minutes should be prepared in a prescribed format about the full meetings.
- The chairman elected during the meeting will sign all the papers like minutes etc.
Also, the following points must be decided in the meeting itself:
- Auditor appointment: Director must appoint someone as a auditor of the company in their very first meeting.
- Issue of Share certificates: Also share certificates should be duly issued to the shareholders as their valid proof for their holding in the company. Make sure the share certificates should be properly stamped from the revenue authorities of the state.
- Misc: When you start the company, there may be many things which need approval from the board of directors. Hence, you may consider all those requirements in the board meeting itself.There is no term with the name initial compliances actually; we have created the term just for you to understand this better. It is actually 1st part of the total compliances and which have to be done within 30 days of the incorporation. Some other stuff we will also mention just to be organized with the compliances. Here are the details:
- Track Your PAN: The first thing you must do is to track your PAN card and check the same has been applied or not the company from which you are taking the incorporation services. PAN is a mandatory document for anything. E.g. if you are a having a online business then you must be willing to apply for a payment gateway, but any gateway provider will not give you the service until and unless you have your PAN card. You can also know the PAN number of your company, in case you not able to find, through know your AO link.
- Apply for the bank Account: Many people are not aware of the fact that they can still open the bank account without having the Pan card. The mandatory documents for opening the bank account for the company are as follow:
- Certificate of Incorporation (COI)
- Memorandum of Association (MOA) and Articles of Association (AOA).
- PAN Card Acknowledgement (Proof that you have applied for it)
- Personal Documents of the directors
- INC 3 – Consent of Nominee (applicable in case of one person company)
- Others will be provided by the bank itself.
- With the help of above documents you can open your bank account and proceed with the business.
- Call the first board meeting: This is the first legal step which should be taken in respect by every director of the company within 30 days. Make sure you follow all proper procedure as laid down in the law otherwise meeting would not be considered valid. In layman terms, you may understand the procedure like as follow:
- Send 7 days prior notice to every director of the board for meeting specifying the date, time, place, agenda of the meeting etc.
- Make sure it reached every director and proper acceptance from them.
- For meeting to happen, make sure atleast 1/3rd of the total directors or 2 whichever is higher, should attend the meeting to make it a valid one.
- Proper minutes should be prepared in a prescribed format about the full meetings.
- The chairman elected during the meeting will sign all the papers like minutes etc.
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Also, the following points must be decided in the meeting itself: - Auditor appointment: Director must appoint someone as a auditor of the company in their very first meeting.
- Issue of Share certificates: Also share certificates should be duly issued to the shareholders as their valid proof for their holding in the company. Make sure the share certificates should be properly stamped from the revenue authorities of the state.
- Misc: When you start the company, there may be many things which need approval from the board of directors. Hence, you may consider all those requirements in the board meeting itself.
About the Author
Author is CA Paras Mehra, co founder of hubco, a leading website for registering service tax and import export online.
Category : Corporate Law | Comments : 0 | Hits : 1135
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