Important steps that needs to be done after Incorporation

Here are few important steps that needs to be done after incorporation. Generally people use to incorporate their company but they are not aware what is the next step or what is to be done after incorporation. So the first step that is to be done after incorporation of the company is the holding of the Board meeting of the Company. Every Company is required to hold its first Board Meeting within 30 days of its incorporation, means once the company is incorporated then within 30 days you need to hold a Board Meeting wherein every director is required to disclose his/her direct/indirect interest with the Company, means if a director is already a director in any other Company or any other entity then he needs to disclose that interest and the govt. has specified a format for that i.e, the disclosure shall be made in Form MBP-1.

Another important thing that needs to be done in the First Board Meeting is the appointment of Auditor. Every company is required to appoint its First auditor within 30 days of its incorporation by board of the Directors and in case the board fails to appoint the same within 30 days then the Board can call for an Extra ordinary  General Meeting we can call it EGM and appoint the auditor and the same needs to be done within 90 days means either the board can appoint the auditor within 30 days or within 90 days in the EGM. 

Another important thing that needs to be done is the opening of the Bank account of the Company. Every Company is required to open its bank account to receive the subscription money from the subscribers and once this account is opened then you need to file a declaration for the commencement of the business with the ROC and the same shall be filed in Form INC-20 A and there is a timeline also for filing of this declaration means this declaration needs to be filed within 180 days from the date of incorporation. In case there is any delay or you are not able to file that within 180 days then there is a penalty also that use to be imposed in case of delayed filing. 

So one more important thing is there i.e, the issuance of the share certificate. Once the company is incorporated then the Company is required to issue the share certificates to its shareholders within 60 days from the date of incorporation and those share certificates shall contain the number of share held by the shareholder, the folio number, the distinctive number and the same shall be signed by one director and the company secretary or in case there is no company secretary then the same shall be signed by atleast two directors of the Company. Along with these compliances there are few certain more compliances that a company needs to do after incorporation means there are you can periodical compliances or event based compliances that needs to be done, some of them I can discuss with you is like the holding of Board Meeting, every company is required to hold atleast four board meetings in a financial year and the gap between the 2 board meetings can not exceed 120 days. Another is, now the ministry is coming up with so many amendments, so with those amendments there are a few more compliances that are introduced by the ministry are like filing of Active Form. Active form as the name itself suggest is like regarding the activeness of the company means the active identity of the Company whether the company is running on records only or it is properly conducting its business, having a place of business or not.

Another is the return of deposits, means every company if it is accepting a loan or borrowing from any bank or financial institution is required to file a return of deposits in Form DPT-3 and one more compliance is also introduced by the ministry i.e, the filing of Form MSME, means if a company is making any payment to MSME suppliers and their dues are outstanding for more than 45 days then the Company is required to file a return called the MSME Form 1 to comply with the provisions and the most important amendment that is introduced by the ministry is the director’s kyc, means every director is required to conduct his/her director kyc every year and this amendment basically introduced by the govt. to avoid duplicacy of DINs.

Apart from these compliances there are certain annual compliances that every company is required to do so the first and foremost is the statutory audit of the accounts, every company is required to get its accounts audited by the auditor of the Company and once the accounts are audited then the company is required to file the income tax return for the company like an individual the company is also required to file the income tax return and another important compliance is the holding of the AGM means the annual general meeting, every company is required to hold atleast one annual general meeting in a financial year and once you are done with your annual general meeting then you need to file the annual return and the Financial statements with the concerned ROC the same shall be filed in form like Form AOC-4 i.e, for the Financial statements and Form MGT-7 i.e, for the annual return of the company.

Apart from these compliances from time to time you must keep an eye on certain licences and registrations also means there are certain need based registrations that you can opt for to make your company grow more. Like the GST registration means if your turnover limit is exceeding and that is requiring you to get the registration under the GST so you must keep that in mind and the another is like the IEC registration, if you are in to import export business then you can go for the IEC registration and also there is one more is the Food Licence, if you are into the food industry you can opt for the Food licence and certain recommended licences are also there which you can get the registration of Trademark also to protect your brand image one more is the MSME registration, means if you want to get the benefits of micro and small enterprises then you can opt for the MSME registration. 

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