When you start a company, it’s just the beginning of a lot of things you need to do to run it well and legally. After you start, there are certain rules you have to follow to make sure your business stays legal and operates smoothly. Hence, the management should be fully aware of the post-incorporation compliance to avoid any penalties or punishments. These rules are called post-incorporation compliances. In this article, we’ll talk about the important things you need to do after starting your company to make sure you’re following the law.
Understanding Post-Incorporation Compliances
Once your company is started, there are some legal things you have to do to keep it running properly. These rules are there to make sure your company is honest, responsible, and follows the law. If you don’t follow these rules, you could get in trouble and even have to close your company.
Key Post-Incorporation Compliances
There are certain post incorporation compliances that every newly incorporated company must comply with, i.e.
ONE TIME COMPLIANCES
Compliance | Deadline from the date of Incorporation | Penalty in case of non-compliances as per Companies Act, 2013 |
Conduct the first board meeting of the company. | within 30 days | Every officer in default shall be liable to a penalty, which may extend up to Rs. 25,000/-. |
Appointment of the first Auditor for the Current Financial Year | within 30 days | The company and every officer in default shall be liable to a penalty, which may extend up to Rs. 5,00,000/-. |
The bank account of the company shall be opened | within 2 months | The company and every officer in default shall be liable to a penalty of Rs. 50,000/-. |
The committed amount by the subscriber/shareholder shall be deposited to the company’s bank account | within 2 months | The company and every officer in default shall be liable to a penalty of Rs. 50,000/-. |
The company shall deliver the share certificate to the subscriber/shareholders | within 2 months | The company and every officer in default shall be liable to a penalty of Rs. 50,000/-. |
Filing of E-form 20A – Commencement of Business | Within 180 days | The company is liable to pay penalty, which may extend to 12 times of the normal fee |
Further, there are certain Event-Based, Monthly, Quarterly and Yearly compliances which every company has to comply, i.e.
PERPETUAL COMPLIANCES
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LEGAL TERMINUS, being a one-stop solution, can help you complete the above compliances in a hassle-free manner. The highly knowledgeable and experienced consultants of LEGAL TERMINUS help your business grow in a smooth way.
The best part of associating with LEGAL TERMINUS is that it takes care of all your filing and lets you concentrate upon your business without being worried about the legal compliances.
Our excellent and timely reminder policy will never let you spend any extra single penny towards penalty or late fee under any law.
We shall be happy to assist you, and in case you require our services, please feel free to contact us at the below mentioned contact details: –
Email: sales21@legalterminus.com
Phone: 8280093456
