After incorporation of Private Limited Company, a set of procedures linked to compliances must be accomplished to maintain conformity with the Companies Act, 2013. The Directors and the Company risk fines and penalties for non-compliances. As a result, those who incorporate a firm must be aware of its Post-Incorporation Compliances responsibilities. The Companies Act of 2013 is a strict law that does not allow any error. Ignorance of the law is not an excuse, or “Ignorantia Juris nonexcusat.” A legal maxim further states that one cannot avoid responsibility by claiming ignorance of the law. As a result, the directors and shareholders must be informed of the Post-Incorporation Compliances, after the company is incorporated. In this article, we will look at the Post-Incorporation Compliances required for a Private Limited Company

Post-Incorporation Compliances for Private Limited Company 

Following are the Post Incorporation Compliances for Private Limited Company- 

BODs Meeting

The BOD meeting must be held by the company within 30 days of the incorporation date, according to Section 173(1) of The Companies Act 2013. Such meetings may be attended by directors in person or by video conference.

Establishing a Registered Office

A company must establish a registered office within 15 days of its registration date in accordance with Section 12(1). The company would be expected to receive all official correspondence from the various authorities here. Within thirty days of the date of incorporation, the company must inform the registrar of the change.

Incorporating the Company’s Name 

Every business should be required to install a sign with its name in prominent locations that should be associated with its operations. It ought to be expressed in the regional tongue. Additionally, the letterhead and other printed materials must to include the company name and seal.

Appointment of an Auditor

Within 30 days of a company’s incorporation, the Board of Directors of the Company must name a Chartered Accountant as the first auditor of the Company. If the Board of Directors fails to name an auditor, it must notify the company’s members, who may then name an auditor within 90 days after the company’s incorporation. The Company’s first auditors will serve in their roles until the conclusion of the first annual general meeting, and they will be eligible for reappointment at the conclusion of their terms.

Disclosure of an Interest

Each director must disclose his stake in any firm, establishment, or corporation as referred to in section 184(1) of the Companies Act 2013 at the very first board meeting. Any changes to the revelations must be communicated to the board at its first meeting of each fiscal year. If there is an autonomous director, the director shall declare at the first board meeting that they meet the independence requirements.

Keep Statutory Records Up-to-Date

One of the most significant post company registration compliances is this one. It is required by the Company Act that the company keep statutory registers at the registered premises. Such activity shall be recorded in a specified manner and shall be deemed to constitute a legal requirement. Failure to do so could result in severe penalties for the company.

Certificate of  Shares Issuing

Within 60 days of the date of incorporation, the Company must issue the shareholder^[1] with a share certificate. The corporation has a 60-day window from the date of the allocation to issue the certificate in the event that additional shares are allotted.

Opening Bank Account for the Company

The opening of a bank account in the company’s name is one of the important steps of Post Incorporation Compliance. A firm can create a bank account quite easily because it is a legally recognized and registered legal entity. The following documents must be presented in order to create a current account in the company’s name in accordance with the Reserve Bank of India’s KYC regulations:

• Copy of the articles of association and the certificate of incorporation that has been self-attested
• Board resolution to open a bank account for the Company 
• If applicable, a power of attorney is given to its managers, officials, or staff to conduct business on its behalf
• A copy of the letter of PAN allocation
• A duplicate of the phone bill

To open a bank account, submit the paperwork bearing your self-attestation and the business’s seal. After the firm is incorporated, it is crucial to get a company seal and letterhead.

Maintain Accurate Books of Accounts

In accordance with Section 128, every firm is required to maintain accurate books of accounts that accurately portray the business’s current state. The business should promote a double-entry system and carry out accrual-basis accounting

Commencement of a Business Certificate

According to the current bylaws, the firm must get a certificate of beginning within 180 days of the date of incorporation. Additionally, the directors are required to make a declaration stating that every subscriber has paid any outstanding balance on the shares.

Conclusion 

As you can see, there are a lot of tasks following Post Incorporation Compliances that one must do honestly. It goes without saying that any violation of this rule or non-fulfilment of Post Incorporation Compliances, can subject any business to harsh fines. Ensure that the necessary management is in place to handle these compliances so that the core group members can concentrate on their core strengths. Seek professional advice for Post Incorporation Compliances in case you are not aware about the same. You can also directly contact Bizadvisors.io. they have a very big as well as experienced team of CA, CS and Lawyers who will help you out in fulfilment of the Post Incorporation Compliances of the Private Limited Company.

Read our article:A Complete Rules and Procedure for an Annual Compliance of Public Limited Company