Post Incorporation Compliance in Private Limited Company

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Post Incorporation Compliance in Private Limited Company

Whether you have already registered a Private Limited Company or are planning to register one, it’s really important to understand the compliance requirements that come with private limited company registration in India. This blog will help you understand all you need to know about the mandatory compliances before online company registration in India.

A Pvt Ltd company is the ideal option for entrepreneurs looking forward to easily raising funds in the competitive market. New Pvt ltd company registration can be done in 15-20 working days. But registering the company is just half the work done. 

Below are the compliance requirements post-incorporation of PLC 


  1.     Registered office for Company

Within 15 days of incorporation, the company is required to have a registered office. The company is required to file the application form INC-22 to inform the Registrar of Companies within 30 days of the company incorporation. The registered office address is subject to further communication or receiving and acknowledging communication and notices.


  1.     Meeting of Board of Directors (BODs)

As per section 173(1) of the Companies Act, 2013, it is compulsory to hold the first meeting with the board of directors within 30 days of company incorporation. Annually, the company holds 4 meetings, with the gap between 2 meetings not being more than 120 days. The board of directors can be present in person or through video conferencing. The notice for the meeting has to be sent to every director in writing 7 days prior to the meeting. 


  1.     First Auditor of Company

After obtaining the certificate of incorporation, the company must appoint the first auditor within 30 days as per section 139(1) of the Companies Act, 2013. If the board fails to appoint an auditor, it must be communicated to the members of the company. The members organize the general meeting immediately to appoint the auditor within 90 days. 


  1.     Statutory Registers

The company is required to have letters and letterheads. The company must mention the below-mentioned information on letterheads, billheads, notice letter paper and other official publications.

  • Company Name
  • Registered Office Address
  • Corporate Identity Number
  • Phone number
  • Fax Number
  • Email Id
  • Website, if any

Statutory registers are subject to penalties if the company does not maintain them under the registered office. 


  1.     Disclosure of Director’s interest

All the directors of the company are required to disclose their interest in the board meeting as per Section 184 of the Companies Act, 2013. The disclosure further discusses directorship and shareholding. Also, directors are required to disclose their other interests from time to time and at the same time, directors must meet the company’s goal individually.


  1.     Open Current Bank Account

The company opens a bank account with its own name within 60 days of the date of incorporation to record the company transactions separately. Below are the required documents to open a bank account:

  • Certificate of incorporation 
  • Memorandum of Association 
  • The official registered address of the company
  • Identity proof of the director’s along with PAN card
  • Board of Directors’ resolution to open a bank account
  • PAN allotment letter 

  1.     Issuance of Share Certificate

The company sends the subscriber certificate to all the shareholders within 60 days of the date of incorporation as per the provision mentioned in Section 56 of the Companies Act, 2013. Further, if there is an allotment of additional shares, the shares are issued from the date of allotment.

Moreover, if there’s an allotment of debentures within a period of 6 months, then, the issue of the debentures from the date of allotment. The share certificate must be issued in a prescribed format. A share certificate is issued under the common seal of the company and must be signed by directors and the company secretary. The certificate must have the following information:

  • Names of Shareholders
  • Number of share certificate
  • Face value of shares
  • Total number of shares purchased
  • Preference or equity share
  • Receivable amount

  1.     File INC-20A for private limited company registration in India

After receiving the incorporation certificate, directors must file the form INC-20A within 180 days of the date of business incorporation to MCA. It is the declaration of commencement of business certificate. For more detailed information, read Form INC-20A: Declaration of commencement


  1.     Maintaining Books of Accounts

Maintaining books of accounts is mandatory for the company to represent the business fair picture. The company must follow the double-entry rule along with the accrual basis of accounting. 


  1. Annual General Meeting

The Annual General Meeting must be conducted every year. The meeting aims to discuss the financial statement, auditor’s appointment, declaration of dividend, and remuneration. The meeting must be held at the registered office or in the same city where the registered office is located. 

The first meeting will be conducted within 9 months of the end of the first financial year. However, if your company is incorporated on or after January month, your first financial year will be considered around 15 months. After that, the AGM must be held within 6 months of the end of the financial year.

  • Financial Statement (Form AOC-4) – Private limited company is required to file a balance sheet and statement of profit and loss account within 30 days after the AGM.
  • Annual Returns (MGT-7) – MGT-7 needs to be filed within 60 days from the date of AGM, which is the annual compliance that is filed every year. The list of shareholders along with details of all board meetings during the year is submitted. 

  1. DIR-3 KYC

 DIR-3 KYC is required to be renewed once a year. In case it is not renewed before the due date, the penalty of 5000 is levied.

Conclusion

The above points clearly state the mandatory compliance for the smooth functioning and maintaining of a corporate structure. We hope this article helps you maintain your business operations systematically after your private limited company registration in India. One should always hire a practising professional to handle legal matters. It lets you focus on core activities and experts can make sure you are compliant. We at LegalWiz.in have become a part of thousands of successful journeys. Do get in touch with us.

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