Author - Advocate Harshvardhan Abburi and Associate Zarmeen Jahan
Registering your company is just the first step of running a successful business. The Companies Act, 2013 replaced the previous companies act and it is one of the most significant legal reforms in India to bring Indian company law on par with global standards. Under the Companies Act, 2013, there are certain mandatory compliances that needs to be followed by every company regardless of the nature of business, type the company etc
Once a company is registered with the Registrar Of Companies (ROC) the following are the mandatory compliances that are required to be followed by every company:
Verification Of Registered Office
Within 15 days of the incorporation of the company and all times thereafter, a company is required to have a registered office for receiving and acknowledging all official communication and notices to be addressed to it. Verification of the registered office is to be filed in FORM INC -22 within 30 days of the incorporation of the company.
Display Of Company Name And Details
All companies are required to have their name board outside their registered office, along with its name, Company Identification Number (CIN), registered office address, phone number, E-mail address, Fax number and website.
Meeting Of Board Of Directors
In any company the first meeting of the Board of Directors should be held within 30 days of incorporation of the company.Also four board meetings are needed to be held every financial year such that the gap between two consecutive board meetings is not more than 120 days.
Disclosure Of Interest By Directors
All the directors in the first board meeting are required to disclose their interest in other entities in FORM MBP -1.
Issuance Of Share Certificate
The company is required to issue share certificates to the members of the company within 60 days of its incorporation.
Appointment Of Statutory Auditors
If it is a newly incorporated company, then Auditor may be appointed by either the Board Of Directors within 30 days of incorporation of the company , or may be appointed by the members in Extraordinary General Meetings in 90 days of incorporation of the company then ratification or re-appointment is required in every consequent Annual General Meeting Of the company.
Filling Of Financial Statements
Within 30 days of Annual General Meeting every company is required to file its financial statements in FORM AOC- 4 which should be digitally signed at least by one director and is required to be certified by a company secretary or a chartered accountant in practice.
Filing Of Annual Returns
All companies registered under Companies Act, 2013 or Companies Act, 1956 are required to file their annual returns with registrar of companies within 60 days of annual general meeting in e-FORM MGT- 7 and should be digitally signed by at least one director. A Practicing Company Secretary must also certify the Annual Return in the form MGT-8. Any listed company and unlisted company that has paid up share capital of or more than Rs 10 cr or Turnover of or more than Rs 50 cr shall be required to attach a certificate in MGT-8 together with the annual return to be filed with ROC.
Maintenance Of Statutory Register
The following companies are required to be maintained by each and every company :
MGT- 1: Register Of Members
MGT- 2 : Register Of Debenture Holders
MGT- 3 : Foreign Register Of Members, Debenture Holders Other Security Holders or Beneficiary Residing Outside India
FORM SH- 2 : Register Of Renewed And Duplicate Share Certificate
FORM SH- 3 : Register Of Sweat Equity Shares
FORM SH-6 : Register Of Employee Stock Options
FORM SH- 10 : Register Of Shares or Securities Bought Back
FORM CH- 7 : Register Of Charges
Corporate Social Responsibility (CSR)
CSR indicates a concept by which companies willingly choose to contribute to a better society and a cleaner environment – a concept by which companies voluntarily integrate social and other useful issues into their business activities in order to improve their stakeholders and society in general. The CSR provisions apply to every company, its holding, subsidiary and foreign company having Net Worth of more than 500 Crore or Turnover of more than 1000 Crore or Net Profit of more than 5 Crore in the preceding financial year.
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