Private Limited Company Post-Incorporation Compliance
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1. First meeting
A private limited company must hold a board meeting within 30 days of incorporation, discussing agenda items like appointing first auditors and issuing share certificates.
2. Bank account
Company incorporation requires a bank account for companies to operate as an artificial entity, ensuring transactions cannot be conducted in the name of a natural person.
3. Official address
Section 12(1) mandates a company to establish a registered office within 30 days of incorporation, which is responsible for receiving official communication from authorities.
4. Auditor
Section 139(1) mandates the Board of Directors (BOD) to appoint the first auditor within 30 days of company registration, unless a government company is registered, and for 90 days.
5. Interest Disclosure
Directors must disclose their interest in a company at the first board meeting, with changes informed by the board each financial year. Independent directors must declare independence.
6. Statutory registers
The company must maintain statutory registers at its registered office, and failing to do so may result in penalties.
7. Share certificate
Share certificates must be issued within 60 days of incorporation, and additional shares must be allotted within the same time frame.
8. Books of Accounts
Section 128, mandates companies to maintain accurate and fair books of accounts using a double entry system and accrual accounting.
9. Commencement of business certificate
The company must obtain a certificate of business commencement within 180 days and file a disclosure from its directors confirming all subscribers have paid the due amount on shares.
