Post Incorporation Compliances for a Private Limited Company

Post Incorporation Compliance for a Private Limited Company in India

If you have incorporated a Pvt Ltd Company, there are certain mandatory compliances that must be fulfilled by the entity. Non-compliance can lead to heavy penalties. This article explains the post incorporation compliances for a Pvt Ltd Company in India.

One of the most important post incorporation compliances is to obtain a Permanent Account Number (PAN) and Tax Account Number (TAN).  The process of registering a Private Limited Company is relatively simple, but once done there are a number of compliances that need to be catered to. You can apply for PAN and TAN by filing form INC-32 or SPICe or online.

It is essential for the company to have a bank account opened in its name within 30 days of incorporation. You can open the account by submitting the following documents to the bank:

Section 173(1) mandates that every company must conduct its first board meeting within 30 days of its incorporation. You can hold this meeting either in person or via video conference. You must also inform the registrar of this meeting.

The next important compliance is to pay the stamp duty on share certificates. This must be paid within 30 days of issuance of share certificates. The stamp duty is payable on the value of shares issued to shareholders, as per the Indian Stamp Act, 1899.

Every company must affix its name in conspicuous places, including the place of business, on which it carries on its activities.  Also, the Company needs to issue share certificates to its subscribers within two months of its incorporation. The share certificates should contain the paid-up capital amount as deposited by them. Additionally, the company will have to file an e form INC-20A with ROC to declare its commencement of business. You must also get a corporate seal and get letterheads and printed negotiable instruments bearing the company name affixed thereon. Finally, you must obtain a shop act license within 30 days of incorporation.

 

 

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