AFTER INCORPORATION OF A COMPANY WHAT ARE THE STEPS TAKEN

After the incorporation of the company, there are a few compliance’s that need to be done before 30 days from the date of incorporation. However, other requirements need to be done on whether or not in 30 days.

These compliances are regulated by the Registrar of Companies. Any violations of such compliances will cause further problems and attract penalties.

A few steps that need to be initiated after the incorporation of a company are mentioned below

1. Company name board

After the incorporation of a company, it is important to have a name board for the company and needs to contain the following details Name, registered office address, CIN number, GSTIN Number, etc.

2. Letterhead of a company

Letterheads help in better communication between two parties. For businesses of all sizes, be it individual business, a small company, or a large corporation, a letterhead must be used by all.

Print the below-specified details on all business letters, invoices, Letterheads, mails, etc. The details to be displayed are:

• Name of the company
• Registered office address of the company
• Corporate Identity Number or CIN
• Telephone number, email ID
• Website address and fax number, if any

3. Company Seal

The company seal is important to emboss your company’s important document which states that the documents are certified and agreed upon by the Board of Directors.

4. Opening a bank account

Opening a bank account for the company is one of the most important things to do after the incorporation of the company. Although the opening of a bank account is not legal compliance, it is still an important step that needs to be initiated before starting a business. Some of the compliances of the Companies Act will remain incomplete without the opening of a bank account.

5. Issue of Share Certificate (Needs to be obtained within 60 days from the date of Incorporation)

 Companies Act, 2013 requires the company to allot and deliver share certificates within two months from the date of incorporation to all subscribers of the Memorandum of Association (MOA). It’s also mentioned that each subscriber will deposit subscription money as specified in the MOA to the company’s bank account by cheque or through net banking.

After you open the current account of the company, the first thing to do is take cheques from the subscriber or members of the company as decided in the memorandum of the company.

NOTE: The company has to introduce a share certificate to its shareholders within two months after the incorporation of the company. A penalty of Rs. 25000/- to Rs. 500000/- can be incurred on the company if the share certificate is not issued. The directors of the company will have to pay a penalty ranging from Rs. 10000/- to Rs. 100000/- for not issuing the share certificate on time.

6. Commencement of business (Needs to be filed within 180 days from the date of Incorporation)

Every company has to acquire a commencement of business certificate before initiating the business operation. This certificate is mandatory for any company that has a share capital.

7. GST registration

It is an Indirect tax levied on the supply of goods and services. It is levied at every point of sale. The process of getting it done is called GST registration.

8. Appointment of auditor

One of the first orders of business after having obtained your company’s Certificate of Incorporation is the appointment of the first auditor of the company. Within 30 days from the date of registration of the company, the Board of Directors must call a board meeting and appoint an auditor for the company.

Though the department is not very strict with these provisions, they cannot be ignored. In case you haven’t filed ADT-1 within the prescribed time, the same can be filed later but with due penalties in the first AGM.

9. Professional Tax

If your business is operating from certain states where professional tax is mandatory, it is important to get a professional tax registration

10. Shops and Establishment registration

Shops and establishment registration needs to be done if your business operates from commercial premises.

11. First board meeting

The first board meeting has to be held within 30 days of incorporation. The minutes of all board meetings have to be maintained and the attendance record needs to be kept.

Conclusion

The above-mentioned points are a few steps that need to be kept in mind right after the incorporation of a business. These compliances need to be done within 30 days of incorporation.