After incorporation, a private limited company is required to comply with certain statutory requirements under the Companies act 2013.
Non-compliance to these mandatory requirements may lead to fines and penalties.
Therefore, we suggest you to be aware about these post incorporation compliance requirements applicable to a private limited company.
Now a days, PAN and TAN are issued at the time of company’s incorporation. You need not apply for it separately with income tax department.
In this article we will be discussing post incorporation compliance for private limited companies in detail.
Before getting into these post incorporation compliance, we suggest you to check your company master data online.
Company master data will let you know details such as your private limited company’s authorized share capital, registered office address, category, CIN, paid-up share capital, status, email ID and date of incorporation etc.
If you find any incorrect details, then take up this matter to the concerned person who has registered your private limited company.
Situation of registered office – Form INC22
As per section 12 of Companies act 2013, a private limited company shall on and from the 15th day of its incorporation and all times thereafter shall have a registered office.
This means, the registered privated limited company should enter into a rent or lease agreement within 15 days from the date of incorporation and within 30 days from the date of registration should file e-form INC-22 with ROC.
If you have not filed documents related to your registered office at the time of incorporation, you need to do it by uploading the e-Form INC22 within 30 days from the date of incorporation with the ROC.
Date of incorporation will be mentioned on the certificate issued by MCA.
Appointment of First Auditor
Post incorporation, the board of directors is required to appoint a chartered accountant in practice as its first auditor.
First auditor has to be appointed within 30 days of incorporation.
In case board of directors fail to appoint the first auditor, then it has to be appointed within 90 days in a general meeting of members.
First auditor is required to hold office till the conclusion of the first annual general meeting.
If the private limited company wants to reappoint them for next year, then they can do so in the first annual general meeting.
Companies Act 2013 does not require any form to be filed with ROC but this is a requirement of law and it has to be complied within time.
Display Company’s Identity and Other Details
After registration, it’s the duty of the board of directors of the private limited company to display following things outside company’s registered office;
- Name of the private limited company
- Registered office address of the private limited company
- Corporate identity number or CIN
- Telephone number, email ID
- Website address and fax number if any
Company is also required to print it in all business letters, bill-heads and in all type of official publications.
If you failed to quote CIN number, then a penalty of Rs. 1,000 per day shall be imposed on your company and on every officer of the private limited company who is in default for every day during which such default continues up to a maximum limit of Rs. 1 lakh.
Open a Bank Account and Issue Shares to Subscribers
Companies Act 2013 requires the company to allot and deliver share certificates within 2 months from the date of incorporation to all subscribers.
It’s also mentioned that each subscriber will deposit subscription money as specified in the memorandum of association to company’s bank account by cheque or through net banking.
For this reason, the registered private limited company is required to open a bank account with any nationalised or private bank and then take cheque from each subscriber to deposit it in company’s bank account.
After opening bank account, you are required to file for commencement of business within 6 months from the date of incorporation.
File Audit Report, Financial Statements and Annual Report before Due Date
At the end of the year, a private limited company is required to prepare its balance sheet, profit and loss account, Cash flow statements if applicable, auditor’s report and annual return for the whole year.
These documents are required to be audited from the appointed auditor and thereafter should be filed with ROC on or before the due date with the registrar of companies.
Non compliance to this provision will attract additional fee in addition to the normal fee that are charged while filing the e-Form.
Filing of annual report, financial statements and audit report is required to be complied after the end of the year. However, all others listed above are required to be complied immediately after incorporation.
Therefore, immediately after company registration, we suggest you to hold first board meeting within 30 days of the incorporation and consider following things;
- Situation of registered office – Form INC22
- Appointment of First Auditor
- Display Company’s Identity and Other Details
- Open a Bank Account and Issue Shares to Subscribers
- Disclosure of director’s interest and declaration regarding disqualification
In addition to these compliance, you may be required to comply with certain other things as per law. Therefore, we suggest you to consult your financial adviser on this.
