Starting up is easy but to remain so and grow in the field becomes tough. Many searches for the reason but fails. Its just because you are not at default, its your Chartered Accountant (CA) . 

You must be thinking how- answer a simple question- Did CA told you about the intricate compliance after incorporation?? The compliance may be one time, day-to-day or annual, all these need to be complied strictly to avoid any hurdle in the growth of your startup. 10 things that your CA does not tell you:

 

1. First Board Meeting

    

   Not later than 30 days post incorporation, a director should call for the first board meeting by issue of notice (together with the agenda) of the meeting. Notice shall be issued at least seven days before the meeting.

    

   2. Appointment of Auditor

    

   This is the general missed out compliance by startup. An auditor has to be appointed within 30 days of incorporation of company. The ADT-1 form needs to be filed on the Ministry of Corporate Affairs website for the appointment of auditor.

    

   3. Share Certificate

   Companies Act, 2013 requires the company to allot and deliver share certificates within two months from the date of incorporation to all subscribers of Memorandum of Association (MOA). The company shall maintain members register and share allotment register.

    

   4. Statutory Register and Meetings

    

   There are various statutory registers that a company is required to maintain from the time of incorporation. It also helps to keep all the statutory records maintained.

    

   The company shall convene regular board meetings in the calendar year and prepare the minutes of the meeting of the Board of Directors and the shareholders meeting. The Minutes of all the meetings has to be maintained as a permanent document till the life time of the company. Within 30 days from the meeting, the minutes shall be prepared, duly signed, and maintained in a minute’s binder.

    

   5. Financial Statements and Annual Returns

    

   Private Limited Companies are required to file its Balance Sheet, Profit and Loss Account, Auditor’s Report, and Annual Return every financial year before the due date disclosing details of its shareholders, directors, etc., to the RoC.

    

   6. Intimation to RoC

    

   Various changes in the company like appointment, resignation of directors, change in registered office, issue of shares etc. has to be intimated to the concerned Registrar of Companies, on the timely basis.

    

   7. Corporate Social Responsibility (CSR)

    

   The CSR provision obligates the corporate entities to undertake certain philanthropic activities. All companies which satisfy the CSR criteria will have to undertake CSR activities during the given financial year.

    

   8. Labour and Employment Legislation

    

   Businesses with production lines, factories, would also have to consider and comply with a host of statutes such as the Employees’ State Insurance Act, 1948; The Contract Labour (Regulation and Abolition) Act, 1970; the Trade Union Act, 1926; the Payment of Gratuity Act, 1972; the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, etc.

   The company should ensure that proper compliances of these various statues vis-à-vis its employees are in place and the employee policies are formulated accordingly.

    

   9. Payroll Compliance

    

   Employees, consultants etc are the major part of the organisation. There are various labour laws like PF, ESI which govern the professional relationships. So, payroll compliance becomes mandatory for all organisations having employees.

    

   10. Taxation

    

   Taxation is an important aspect which needs to be understood by all the entity. Tax compliance measures vary with the kind of business and the nature of services. Tax had to be paid to the Central/State government or local bodies.

 

There are possible precautionary measures that the entry-level players should keep in mind while doing business in India, with more focus on the requirements under the Companies Act, 2013.

 

So, when you startup, it is not just formation of a company. It includes various compliances which need to be duly complied by all. If you fail to do so then you may end up with either penalty or a silent exit. 

 

For duly compliance of your company regulations, contact us @ Business Maintenance.