A company which has been set or incorporated in India must comply with the Companies Act,2013. The Companies Act, 2013 regulates, appointment, qualification, remuneration and retirement of directors of the company. And other aspects such as how to conduct board meetings and shareholders meetings. It also lays down details about the preparation and presentation of annual accounts and the regular maintenance of books of accounts.
After a certificate of incorporation is issued, the company is considered to be distinct from its member. It has a separate legal entity.
Here are some important compliances –
- Once the incorporation certificate is obtained, a separate legal entity for the company is established.
- As soon as the company gets its incorporation certificate, within 30 (THIRTY DAYS) days one of the directors must issue the notice for the first board meeting of the company, at least seven days prior to the latter being scheduled for.
- It is necessary for the company to have its name board outside its registered office, along with its name, Company’s Identification Number, registered office address, phone number and e-mail id, fax number and website address, if any, stated in it.
- All the above-mentioned details are also required to be printed on the company’s billheads, business letters and on all documents (official) and publications going through the company.
- It is very important for the company to have a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) right after its incorporation. Even to open a Bank Account in India these are the basic credentials are required.
- The company is also liable to conduct board meetings during the calendar years at stipulated intervals and also ensure that all the minutes of the board meeting are safely retained till the company exists.
- The minutes of the meeting required to be prepared within 30 (THIRTY) days of the meeting.
- Issuance of share certificates to the shareholders is also an important requirement, and all details of such issuance of share certificate are required to be maintained and mentioned in the register of allotment.
- Maintaining and filing of profit and loss account, balance sheet, and annual return every financial year together with an auditor’s report before the due date with the Registrar of Companies is a very vital requirement of the company act which a company has to endeavour.
- Other than the above-mentioned non-negotiable conditions, there are few more instances where a company is required to intimate the registrar of companies. It includes appointments of directors, removal of Director and certain other changes in the prescribed manner.
- The latest Companies Act has also inserted the CSR (Corporate Social Responsibility) provisions into the Companies Act, 2013. Now, under provisions contained under the Corporate Social Responsibility, companies are obligated to make the contribution in certain philanthropic activities. Companies must adhere the CSR criteria and undertake CSR activities in the financial year.
The aforesaid compliance requirements only apply to the Companies Act, 2013. In addition to this, further registration is required, depending on business type and turnover, such as Excise, GSTN etc.. It is important to note that the responsibility of a company to comply with all rules and regulations provided in the Companies Act is not a one-time thing, but is a continuous affair.