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ROC / Post Incorporation Compliance of Companies

@ just Rs. 5,000/- (all inclusive)

After incorporation of a Company there are a number of Compliances prescribed by Companies Act, 2013. These prescribed compliances are to be done within the time prescribed otherwise the Company will have to bear heavy amounts of fines and penalties.

We are discussing below the compulsory compliance which a Company is required to compile:

  1. Filing with ROC, commencement of business

It is mandatory to file commencement of business in form 20A at a time of 180 days from the date of formation of the company.  Companies not having any share capital, i.e. companies that are limited by guarantee are exempted from this compliance.

      Penalty for not filing commencement for business (form 20A) timely:

  • There is a penalty on the company amounting to Rs. 50,000/-
  • During the period of default, every director of the company is liable to penalty of Rs. 1,000/- per day during which this default continuous but subject to Rs. 1,00,000/- 
  1. Appointment of Auditor

Every company is required to appoint an auditor within a period of 30 days from the date of its formation. When appointing the first auditor, it is not compulsory to file ADT-1 form. However, the appointment of the next auditor is compulsory to file ADT-1 form within a period of 15 days from his appointment.

Issue with share certificate

The company is required to issue a share certificate within a period of 2 months from the date of its formation. The prescribed form for issuing share certificates is SH-1.

Penalty for not issuing share certificates (form SH-1) on time;

  • Company will have to bear a minimum  penalty of Rs. 25000 which cannot be more than Rs. 5,00,000/-
  • Every director of the company will have to bear a minimum fine of Rs. 10,000/- but more than Rs. 1,00,000/-
  1. Conducting a Board Meeting

Within a period of 30 days of the formation of the company, a board meeting of the board of directors is compulsory. In one financial year, there should be 4 board meetings but duration between 2 board meetings should not cross 120 days. As per the Companies Act 2013, quorum for board meetings is One Third (1/3rd) of total number of directors or at least 2 directors whichever is greater. 

Penalty in case of non-compliance

  • Company will have to bear a penalty of Rs. 25000 in the case of non-compliance.
  • In term of section 173 of the Companies Act , 2013 each director, who is responsible for issuing notice to conduct board meeting, has to bear penalty of Rs. 25,000/- 

Notes:

  • In case of small companies, there should be minimum 2 board meetings in a financial year.
  • The provision of board meetings does not apply in the case of One Person Company (OPC). 
  1. Holding of Annual General Meeting (AGM)

It is compulsion for every company to conduct an Annual General Meeting every year. It is important to mention here that duration between the 2 (two) Annual General Meetings should not exceed 15 (fifteen) months.  The main agenda of AGM is to adopt the financial statements of the Company, considering the appointment of auditor, other matters like dividends, remunerations etc.

Quorum in the case of private limited companies is at least 2 members must be present at the time of meeting.

Notes:

  • The first Annual General Meeting of the company should be conducted within a time frame of 9 (nine) months from the close of the     Financial Year.
  • In any other case, it should be conducted within a time frame of 6 (six) months from the close of the Financial Year.

 Disclosing the interests of directors

Every director is required to disclose his interest in some other company in the prescribed form MBP-1. The form has to be filed each year in the first board meeting of the company. 

  1. Filing of Financial Statements in form AOC-4

Each Private Limited Company is supposed to submit its financial statements in 30 days’ time from the date of holding the Annual General Meeting. Financial Statements include balance sheet, profit and loss, director’s report and notice of AGM.  

Penalty in case of non-compliance

  • Company will have to bear a penalty of Rs. 1,000/- per day during the period of default but is subject to Rs. 10, 00,000/- in the case of non-compliance.
  • Each director, who is responsible for this, has to bear a minimum  penalty of Rs. 1,00,000/- which cannot exceed Rs. 5,00,000/-
  1. Filing of Annual Return in form MGT-7 

Over a period of 60 days from the date of holding AGM, each company is required to file its annual return in the prescribed form MGT-7. 

Penalty in case of non-compliance

  • Company and its directors are required to pay a file of Rs. 50,000/- and in case of continuing default, the penalty will be Rs. 100/- per day but maximum to Rs. 5,00,000/-
  1. Annual filing of form DPT-3

Every company with outstanding loan amount as on 31st March has to submit details of outstanding loans in a form called DPT-3 no later than 30th June of the following financial year.

Penalty for non-filing of form DPT 3 is Rs. 5,000/- and Rs. 500/- in case of continuing default. The company and its directors are liable for this penalty amount. 

  1. Half early filing of MSME form-1

If a company has payable amounts to small businesses which are small and micro and the amount payable is for more than 45 days, then a half yearly form MSME-1 is to be filed. Timeline for its submission is from April to September and October to March of every year. Non-compliance entails penalty of Rs. 25,000/-

Scope of work

eTaxClub.com can serve to help you get our post incorporation compliances of a company in a hassle-free manner. We will serve you by providing the following services:

  • Assistance with Appointment of First Auditor (To be done within 30 days of incorporation),
  • ADT1 Filing (ROC Filing – Followed by above),
  • Disclosure by director Intimation to MCA on Board Resolution
  • Issuance of the Share Certificate,
  • First Board of Directors Meeting,
  • Secretarial services of preparing a board resolution
  • Yearly filing of MGT-7 AOC-4 and DPT-3
  • Other Company Matters (if applicable),
  • Advisory on Company Matters

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