Conformity with the Companies Act 2013
A corporation incorporated in India is required to comply with the Companies Act, 2013.
The Companies Act, 2013 governs the appointment, qualification, salary, and retirement of company directors.
Aspects such as how Board Meetings and Shareholder Meetings should be conducted.
The creation and presentation of annual financial statements, as well as the ongoing maintenance of accounting records.
Upon are some critical compliance requirements following incorporation:-
After obtaining the incorporation certificate, the company establishes a distinct legal entity.
Within 30 (THIRTY DAYS) days of receiving the company’s incorporation certificate, one of the directors must notify the company’s first board meeting, at least seven days before the meeting’s scheduled date.
The Company’s board of directors is obliged to appoint its first auditor within 30 days of incorporation. Each director is required to state their concern or interest in other companies on the Form MBP-1. Additionally, if a director’s interests change, he should declare the change at the next scheduled Board meeting and in the annual disclosure filed at the first board meeting of the fiscal year.
The Company shall maintain a Registered office on and from the 15th (fifteenth) day of its incorporation and at all times after that, capable of receiving and recognizing any official correspondence and notices sent to it. Within 30 days of incorporation, Form INC-22 must be filed to verify the registered office.
Outside its registered office, the company must display its name, Company Identification Number, registered office address, phone number and email address, fax number, and website URL, if any.
All of the information specified in point 3 must also be printed on the company’s billheads, business letters, and official documents and publications that pass through the company.
It is critical for the organization to immediately obtain a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number). These are the essential credentials required to open a bank account in India.
Issuance of share certificates to shareholders is another critical need, and all facts regarding such issues must be recorded and included in the register of allocation.
Maintaining and filing profit and loss accounts, balance sheets, and annual returns with the Registrar of Companies on a timely basis each financial year, together with an auditor’s report, is a binding obligation of the company act that a corporation must adhere to.
Each company is required to maintain specific Statutory Registers according to Section 85, Section 88, and other provisions of the Companies Act, 2013 and is required to retain and sustain them in the appropriate manner at its registered office. If the statutory register is not kept up to date, the company and its directors may be penalized and prosecuted.
Additionally, the firm is expected to hold a minimum of four board meetings each calendar year at specified intervals and to guarantee that all board meeting minutes are carefully maintained until the company ceases to exist. Minutes of the meeting must be drafted within fifteen days following the meeting and maybe finalized within thirty days.
Apart from the non-negotiable conditions outlined previously, a few other occasions in which a company is needed to notify the registrar of companies. It encompasses the appointment of directors, their removal, and specific other changes made in the prescribed manner.
The Companies Act, 2013 has also included CSR (Corporate Social Responsibility) measures. Under the Corporate Social Responsibility Act rules, businesses are required to participate in certain philanthropic activities. Companies must conform to the CSR criteria and engage in CSR activities throughout the fiscal year.
Compliance with the standards above is limited to the Companies Act, 2013. Additionally, other registrations may be necessary, depending on the business and its annual revenue, such as Professional Tax, GSTN, etc. It is critical to remember that a company’s need to comply with all laws and regulations outlined in the Companies Act is not a one-time event but an ongoing one.