Compliance for company

The companies in India could be formed by various company structures, and could be registered as per Companies Act 2013, they are; Private Limited Company, Public Limited Company, Unlimited Company, Partnership, Limited Liability Partnership, One Person Company, Sole proprietorship, Section 8 Company, Subsidiary Company, Liaison Office / Representative Office, Project Office, Branch Office, Joint Venture Company.

Also, a startup in India could get registered through Partnership Firm, or Limited Liability Partnership Firm or Private Limited Company.

A company which was incorporated in India should ensure compliance with the Companies Act, 2013. The Companies Act, 2013 controls the appointment, qualification, remuneration, and retirement of directors of the Company, as well as the way to conduct board meetings and Shareholders Meetings in the company. Also, it contains the preparation and presentation of annual accounts as well as the regular maintenance of books of accounts.

Compliance for company

Compliances for the companies in India consist of:

After the incorporation certificate is obtained, a separate legal entity for the company should be established. Once the company received its incorporation certificate, within 30 days, and then one of the directors must issue the notice for the first board meeting of the company, at least 7 days prior to the latter being scheduled for.

In the first board meeting, the Company should appoint its first auditor within 30 days of incorporation of the Company through its board of directors and each director of the Company must disclose their concern or interest of the other companies in the Form MBP-1.

If there have been any changes in the interest of Director, then the director is required to disclose the change in the next upcoming Board meeting and also the director is required to disclose in the annual disclosure which was being made in the first board meeting of the financial year.

The Company should, on and from the 15th day of its incorporation and thereafter, is required to have a registered office which would be able to receive as well as acknowledge the official communications and notices which may perhaps be addressed towards it. However, the verification of the registered office should be filed in Form INC-22 within 30 days of incorporation of the business.

It is critical for the company to place its company name board outside its registered office, which would contain its name, Company’s Identification Number, address of the registered office, as well as phone number and e-mail id, fax number along with website address if any.

It is also essential for the newly formed company to have a Permanent Account Number (PAN) as well as Tax Deduction and Collection Account Number (TAN) after its incorporation is done. However, in order to open a Bank Account, these are the most vital and important credentials.

Issuance of share certificates to the stakeholders is also a vital prerequisite, and every detail of such issuance of share certificate are required to be maintained and specified in the register of allotment.

Also maintaining and filing of profit and loss account, balance sheet, as well as annual return for each financial year along with an auditor’s report prior to the due date with the Registrars of Companies (ROC) is an important condition which a corporation has to comply with.

Every company should maintain certain Statutory Registers under the Companies Act, 2013 and is required to keep and maintain at its registered office in the stated form. In case there is any failure in maintaining the statutory register, the company, and the directors shall be fined and put on trial.

The company is required to conduct at least 4 board meetings during the calendar year at definite intervals and also ensure that all the minutes of the board meeting are retained until the business exists. The minutes of the meeting must be made within 15 days of the meeting and can be finalized within 30 days of the meeting.

All the above-stated compliances are the non-negotiable compliance that a corporation is required to abide by and follow. But there are few cases where a company is required to intimate the registrar of companies. It consists of appointments of directors, removal of Director as well as few other changes in the set manner.

The Companies Act has also introduced the CSR (Corporate Social Responsibility) provisions in the Companies Act, 2013. According to these provisions under the CSR, the companies in India are required to provide some contribution in a few philanthropic events. Companies are recommended to comply with the criteria of the CSR and begin CSR the activities in the financial year.

All the above-mentioned company compliance requirements are applicable as per the Companies Act, 2013. Also, registration is required and mandatory depending on the form of company and business turnover, such as Professional Tax, GSTN, etc.

Non-Compliance

In case a Company fails to abide with the rules as well as regulations of the Companies Act, then the Company and each officer who is in default would be levied with a fine for the period for which default continues.

eStartIndia is the professional tech-based online and legal services which help the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any additional legal compliances and services related to the business in India.

Get a free consultation service for any registration with Our Top-skilled Experts.

Author:

eStartIndia Team