Compliances form a very important part in any company incorporation. The Companies Act 2013 is an inclusive act of the Central Government which basically lays down all the rules about the establishment and functioning of any company operating in India.
Without further ado, let’s have a look at some of the top compliance provisions which will give you a better insight and keep you well informed about your start-up ideas!
1) Separate Entity: A company is termed as a “legal person” in law. It is treated as a person, not a real one like humans, but as an entity that came into existence because of the operation of law. As soon as “Certificate of Incorporation” is obtained, a separate identity is created for the incorporated company.
2) Board Meeting: Once the company is established, the director must issue a notice for the first board meeting within 30 days.
3) Auditor: In the first meeting, an auditor must be appointed, again within 30 days of incorporation by its board of directors and all the directors must disclose their interest of concerns in the MBP-1 form.
4) Registered office: From the 15th day of incorporation and all times thereafter, it is necessary for the company to have a registered office from where it can carry on its communications and receive any notices.
5) Board: Having a name board is one more mandatory requirement. The name board has to be placed outside the office with the identification number, address, phone number, mail id, fax number, and website address if any. These details are also to be printed on the company’s letterhead billing books and all other official documents.
6) PAN and TAN: Permanent Account Number and Tax Deduction and Collection Account Number are necessary to open a bank account. This must be generated immediately after incorporation.
7) Share Certificates: Share certificates must be issued to shareholders. All the details of these certificates must be maintained in the book of allotment.
8) Accounts: Filing of a profit-loss statement, annual returns, and balance sheet is very vital for any company. These docs must be filed with the Registrar of Companies.
9) Meetings and minutes: A minimum of 4 board meetings must be conducted in the calendar year with regular intervals and maintain the minutes of the meeting till the company is in existence.
These compliances are non-negotiable and have to be obeyed by all the companies that get incorporated under the Companies’ Act 2013.