For companies looking to grow sustainably, a global market and ecosystem are essential. It is advisable to implement Ease of Doing Business (EODB) when it comes to digitalizing India. Establishing a new PLC (Private Limited Company) under this initiative facilitates growth, makes it easier to function smoothly and simplifies all operations.
In order for the decent system to advance and startups to build their existence in the market, some compliances must be met after PLC registration. Since we are your legal advisor, we can assist you with setting up the post-incorporation formalities. Below are the requirements that must be met according to the Companies Act, 2013.
Here are 10 compliances to keep in mind after incorporating your PLC
Register the company’s official address
During the incorporation of a company, you can register the official address. An entity must register within 15 days of being incorporated if it has not already done so. A Form INC-22 must be filed with the registrar within 30 days of incorporation to notify the registrar of the same. The form is used by various authorities for official communication.
Meeting of Board of Directors (BOD)
In accordance with the 2013 Company Act, the Board of Directors must meet within 30 days after the company’s incorporation.
Appoint the company’s first auditor
In accordance with Section 139(1) of the Companies Act, the BODs must appoint the auditor within 30 days of the registered date. The board must appoint the auditor if they fail to do so. To appoint an auditor, a special general meeting must be called within 90 days.
Disclosure of Directors’ Interests
A director must disclose to the company in the BOD meeting his or her interest under section 184(1) of the Companies Act 2013. The disclosure will be discussed in more detail when it changes. Therefore, each director meets the company’s goal individually and collectively.
Registers of statutes should be maintained
Companies Act requires certain mandatory information to appear on letterheads, billheads, notice letters, and other official publications:
- Name of the business
- Registered office address
- Company’s CIN (Corporate Identity Number)
- Contact phone number
- Fax number
- Email address
- The website address, if any
The registered office of a company is required to maintain statutory records as a condition of registration.
Establish a company bank account
Upon incorporation, the company must register a bank account in its own name within 60 days of the incorporation date in order for transactions to be easily tracked. The following documents must be submitted:
- Certificate of incorporation and Memorandum of Association
- Registered office as address proof of the company.
- PAN card of the director as proof of identity.
- BOD resolution to open an account.
- PAN allocation letter.
Issuance of Shareholder Certificates
After the incorporation date, the Company must issue a share certificate to shareholders within 60 days. If additional shares are allotted, they are issued from the date of allotment. It must contain the following information:
- Name of shareholder
- Share certificate number
- Share face value
- Amount of shares purchased
- Preference or equity share
- Amount received
Obtain and file Form INC-20A
Within 180 days of the beginning of the business, directors must submit an INC-20A Form to MCA once they receive an incorporation certificate. In other words, this is a declaration of business commencement. Following that, every promoter is required to open a bank account to deposit the share capital subscribed in the Memorandum of Association.
- Maintain your accounting records
In accordance with Section 128 of the Companies Act, it is mandatory for companies to keep accurate books of account that provide a full and fair picture of their financial situation. Companies must follow the accrual basis of accounting along with the double-entry rule.
- Annual Compliance for PLC
Every year, PLCs must submit annual compliances within 6-8 months of the end of the financial year. Your company’s first financial year will be 15 months if it is incorporated after January month. Within nine months from the end of the first fiscal year, the organization’s first Annual General Meeting (AGM) is held. After the end of the financial year, the AGM is held within 6 months. According to company compliances, the Ministry of Corporate Affairs (MCA) requires companies to file forms AOC-4 and MGT-7 within 30 and 60 days respectively. AOC-4 requires that financial audit reports and board reports be signed and submitted. In MGT-7, shareholders are listed along with details of every meeting of the Board.
An expanding company can definitely take advantage of the global market’s dynamic and fluidity. As a result, staying aware of the laws, rules, and norms that affect the business is important.