When a company is incorporated, it must complete certain compliance-related formalities regarding the Companies Act. Non-compliance with the provisions of the Companies Act will result in fines and penalties for the Directors and the Company as well. This article has discussed these compliance requirements for a company post-incorporation.
Corporate Stationery
The following stationery should be purchased and set by the company post-incorporation as a part of compliance with the Companies Act:
Name Board
The company is required to affix a board with its name painted on the same along with the address of its registered office outside every place of business or office at which it is carrying the business.
Company Seal
A company seal is a round seal bearing name of the company and a seal bearing the name of the company, which also includes the name authorized signatory. This has become optional as per Companies Amendment Act, 2015 and all such documents required affixing the common seal may now instead be signed by two or one directors and also the company secretary of the company.
Letterhead
The letterhead should be set with the following details:
– Name,
– Address of Registered Office.
This should be imprinted on all letterheads, invoices, notices, and other official documents of the company. The company requires the same for the opening of a bank account and also other reasons.
Share Certificates
The company should provide all its subscribers the Share Certificate within a maximum of 2 months from the date of incorporation. So, the subscribers of the Memorandum of Association (MOA) would deposit the money for shares with the company and take the share certificates of the company for the subscription and amount deposited.
Statutory Register
The company should also maintain a statutory register containing the following details namely:
– register of members,
– list of directors,
– charges,
– debentures and,
– such as other matters pertaining to the shareholders and management of the company.
This must be updated on a regular basis and kept at the company’s registered office.
Application for Obtaining PAN for the Company
For a company like any other person, a PAN Card is required as it is one that is used as the base by the Income Tax Department for tracking all compliance and filings of the assessee. It is required for the following:
– opening a bank account,
– obtaining tax registration,
– filing compliances, etc.
The following are the steps which should be complied with by the company for getting a PAN:
Step 1: Enter the NSDL Website and fill in the application. Select form 49A from the drop-down menu.
Step 2: Now select ‘Firm’ from the ‘Application Type’ and fill in details like the name of the company, date of incorporation, and other details.
Step 3: The company registration number and income details should be entered along with the communication address.
Step 4: Now fill in the AO or Assessing Officer Code.
Step 5: Upload copies of the required documentation and should pay the required fees for the same.
Step 6: Now an Acknowledgement Number will be received which can be used for tracking the status of the PAN Application.
Step 7: The company should attach the certificate of incorporation and NOC (No Objection Certificate) from the Ministry of Corporate Affairs (MCA).
Opening of a Bank Account by the Company in its Name
The company should also open a bank account in the name of the company as it is a registered legal entity and also has a separate legal standing before the eyes of the law. The company should open a current account in the name of the company and should be using the following documents as per the KYC Norms of RBI:
– The self-attested copies of the Certificate of Incorporation or Registration and Memorandum & Articles of Association of the company,
– Board Resolution allowing and passing the opening of a bank account for the Company,
– Power of Attorney granting the managers, officers, or employees to transact business on its behalf, if the same is applicable,
– Copy of PAN allotment letter,
– Copy of the telephone bill.
Appointment of Auditor
After incorporation of a company, the BOD (Board of Directors) is required to appoint the first auditor of the company within 30 days of the date of incorporation, who is a chartered accountant. In case the BOD does not appoint the same, they should inform the members of the Company why they should appoint the auditor within the next 90 days. The first auditors shall hold the office until the completion of the first AGM and would be eligible for re-appointment at the end of the term.
We can conclude that companies consider compliance requirements as per the Companies Act and adhere to the same so as to ensure there are no further costs added to the company in the form of fines or penalties. Complying with the above-stipulated elements also would help the company set a standardized form for functioning with ease and efficiency.
