Post-Incorporation Compliances

  • First Board Meeting
  • Auditors Appointment
  • Issue of Share Certificates
  • Stamping of Shares
  • Maintenance of Statutory Registers.
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First Board Meeting
Compliance:

Every company after its incorporation is required to conduct its First Meeting of Board of Director and thereafter minimum 4 such meeting during every financial year .

Time Period:
  • First Meeting: To be held within 30 days of its incorporation
  • Subsequent meetings: Maximum gap between two consecutive meeting should not be more than 120 days.
Penalty for Non-Compliance:
Fine of :
  • Minimum: INR 50,000/-
  • Maximum: INR 5 Lacs
First Auditor Appointment
Compliance:

Every company after its incorporation is required to appoint an Auditor of the Company in its First Board Meeting .who shall hold the office till the conclusion of first annual general meeting. Subsequently at the first annual general meeting company shall appoint/re-appoint the Statutory Auditors of the Company for a maximum tenure of 5 years.

Form Filling:

Form ADT-1 to be filled with Registrar of Companies within a period of 15 days from the date of the appointment of the auditor.

Time Period:
  • First Auditors: By the directors within 30 days of the incorporation to hold the office till 1st AGM.
  • Subsequent Auditor: At the 1st AGM for a term of max 5 years.
Penalty for Non-Compliance:
Fine on Company of :
  • Minimum: INR 25,000/-
  • Maximum: INR 5 Lacs
  • Additional fees of Rs. 100/- per day till the default continues
Penalty on Officer in Default:
  • Imprisonment of Max 1 Year
  • Fine of Min INR 10,000/- and Max. INR 1 Lacs.
  • Or with both
Share Certificates
Compliance:

Every company after its incorporation is required to issue and deliver the certificate of shares to the subscribers to the memorandum signed by any two directors or one director and a Company Secretary where the Company Secretary of the Company has also been appointed.

Time Period:

Within a period of TWO months from the date of its incorporation

Penalty for Non-Compliance:
Fine on Company of:
  • Minimum: INR 25,000/-
  • Maximum: INR 5 Lacs
Fine on Officer in Default:
  • Minimum: INR 10,000/-
  • Maximum: INR 1 Lac
Shares Stamping
Compliance:

Every company after issuing of share certificates is required to pay appropriate stamp duty applicable in the State where the registered office of the company is situated.

Time Period:

Within a period of ONE months from the date of issue of share certificates.

Penalty for Non-Compliance:

10 times the amount of stamp duty actually payable.

Statutory Registeres & Minutes Books
Compliance:

Every company is required to maintain the statutory registers of the company viz, register of members, register of directors shareholding, fixed assets register, register of share allotments, register of share transfer, register of charges, etc. at the Registered office of the Company. Further the company is also required to make the minutes of the proceeding of the meeting and is required to maintain a minutes books containing the minutes of the meeting of Board of Directors and Meeting of members at the Registered Office of the Company.

Time Period:

Statutory Registers and Minutes Book are required to be maintained throughout the year for the lifetime of the company.

Penalty for Non-Compliance:
Penalty for Statutory Registers:
Fine on Company and every officer in default of:
  • Minimum: INR 50,000/-
  • Maximum: INR 3 Lacs
  • Plus INR 1,000/- for every day during which default continues if the failure is a continuing one.
Penalty for Minutes Book
Fine of:
  • Company: INR 25,000/-
  • Officer in Default: INR 5,000/-