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 it, along with the address of its registered office, outside every place of business or office where it is carrying on business.
Company Seal
A company seal is a round seal bearing the company’s name and a seal bearing the authorized signatory’s name. As per the Companies Amendment Act, 2015, this has become optional, and all such documents required to be affixed with the common seal may now instead be signed by two or one director and also the company secretary.
Letterhead
The letterhead should be set with the following details:
– Name,
– Address of Registered Office.
This should be imprinted on all company letterheads, invoices, notices, and other official documents. The company requires it for the opening of a bank account and for other reasons.
Share Certificates
The company should provide all its subscribers with 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 for the subscription and the 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 used as the base by the Income Tax Department for tracking all compliance and filings of the assessee. It is necessary for the following:
– opening a bank account,
– obtaining tax registration,
– filing compliances, etc.
The following are the steps that the company should follow to get a PAN:
Step 1: Visit the NSDL Website and complete 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 pay the necessary fees for the same.
Step 6: Now, an Acknowledgment Number will be received, which can be used to track 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 use the following documents as per the KYC Norms of the 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 the authority 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 nominate 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 will 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 them to ensure that no further costs are added to the company in the form of fines or penalties. Complying with the above-stipulated elements would also help the company set a standardized form for functioning with ease and efficiency.
