Company Incorporation & Compliance Services
You must know and understand the legal implications of starting and operating a company as the owner of a corporation or LLC. Both federal, state, and local laws must be followed in order for your company or LLC to remain in better standing with the state(s) in which it does business.
Giving birth and creating a new life has been considered to be the most empowering experience of life in ages. It brings new aspects, challenges, and fruits that you bear for the rest of your life; it adds a little more significance and essence to your life. So, quite naturally it becomes a very full-fledged experience. Of course, compared to the conventional and the actual birth-giving process.
It is not as complicated and a noteworthy phenomenon but incorporation of a company is one such extraordinarily beautiful experience in an entrepreneur’s life. Bringing the company into existence for it to breathe in the real world is any entrepreneur’s life’s highlight and dream come true. So, it is only right that proper justice is given to the process of company incorporation and compliance services; which can be achieved by seeking the help of professionals for the task.
But let’s first understand what is company incorporation service? Incorporation of a company is defined as a legal process of creating a separate corporate entity of the company; in simpler terms, a separate entity means that the company has its own rights and duties separate from the members affiliated with the company. All the decisions, acts, or any breach will be on part of the company and no member will be held accountable for it.
Since the process is quite grueling and has complex aspects to it, hiring professionals and getting the company incorporation and compliance services from them seems to be the only rational idea out there.
Steps Involved In Incorporation Of Company
Incorporation of company witnesses following steps in its long legal process: –
- CONFIRM THE AVAILABILITY OF NAME AND HENCE RESERVE THE SAME: – The first and the most important step is the selection of an appropriate name of the company by which it will be known for foreseeable future. As per section 4(4) of Companies (incorporation) Rules 2014 a person may make an application to the Registrar for the reservation of a name proposed in the application. In order to reserve the proposed name, an application should be made online using the Ministry of Corporate Affairs (MCA) website’s Reserve Unique Name (RUN) facility which will allow you to reserve the suggested name of the company with the fees of application of Rs.1000.
- CREATING DOCUMENTS LIKE MOA AND AOA: – The Memorandum of Association is the charter of a company. It is a document that defines the framework of a constitution within which the company can and should operate. It mentions five clauses (name, objects, registered office, liability, and capital). Articles of Association is a document which mentions the rules by which the internal management of the company should abide by. It binds the company and its members by mentioning rights, duties, etc.
- ENSURING PRINTING, SIGNING AND STAMPING, VETTING OF MEMORANDUM AND ARTICLES: – The Registrar of Companies draws up and drafts MOA and AOA which then are printed after being vetted by the registrar of companies. These are then divided into a paragraph and signed by each member to ensure the validity of the documents.
- APPOINTMENT OF POWER OF ATTORNEY: – A power of attorney is appointed to handle and fulfill the long complexities and documentation for incorporation of the company. He/she is responsible for the acts of the company and for the changes made or required to be made in documents such as moa, aoa, etc.
- COMPLETION OF E-FORM FOR INCORPORATION: – One step in the incorporation of the company includes filling e-forms of the consent of directors, a notice of registered office, particulars of directors, reservation of name, application for allotment of DIN, etc.
- STATUTORY DECLARATION: – It states that ‘All the wants of the company Act and therefore the rules thereunder are compiled with respect of and matters precedent and incidental thereto.’
- REGISTRATION FEES: – A prescribed fee is paid to the Registrar of Companies for the process of incorporation on the basis of nominal capital of the businesses which even have share capital.
- CERTIFICATE OF INCORPORATION: – As soon as the company gets a go-ahead on all the documents provided to the registrar of companies, the company is issued a certificate of incorporation, and hence the company is registered officially.
Company Compliance Services
It is said that good compliance is a vital aspect of any business. Compliance can either make or break a company’s credibility; hence the business must adhere to statutory compliance rules and have the perfect compliance management. Statutory compliance can be defined as the legal framework of rules and regulations that the company is obliged to follow in terms of functioning.
These compliances or rules and regulations are set up mainly to ensure fair and just treatment for the employees and consequently ensure employee loyalty and enhancing the value of the company and help in establishing the company’s credibility. Any hindrance in following these rules and regulations can seriously tarnish the company’s reputation and growth which can further lead to the closure of the company as well. So, let’s discuss what some of these rules and regulations are: –
- Verification of the registered office has to be filed within 30 days of incorporation: – A registered company after incorporation has a registered office to which all official communications are addressed to; which is to be filed for verification in form INC-22.
- Opening Bank Account in Company Name: – one of the most important activities is opening up a bank account for the company right after its incorporation to ensure that all the transactions in the name of the company are transacted through the Company Bank Account only. According to the Reserve Bank of India’s KYC norms, the following documentations are required for bank account
- Company’s incorporation certificate along with memorandum and article of association
- Permanent Account Number (PAN) of the Company
- Company’s board resolution to open a bank account
- KYC details of Directors and Shareholders of the Company
- Appointment of first auditor for the company: – After incorporation of the company, the board of directors has to appoint a chartered accountant as the first auditor of the company within a matter of 30 days. The first Auditors of the Company will be responsible for company and office until the completion of the first annual general meeting and will be eligible for re-appointment only at the end of their term in office.
- Holding first board meeting within 30 days of commencement: – within 30 days of incorporation of the company, directors should hold the first board meeting of the company with prior notice to the members.
- Obtaining professional tax – employer registration: – All Companies are required to acquire Professional Tax – Employer Registration (Enrolment Certificate) within a matter of 30 days after the incorporation. This is a state-specific labor registration mandatory for all registered businesses whether you have any employees or not; failing which a result in a penalty.
- Issuance of share certificates: – Within 60 days of incorporation of the company, the company has to issue share certificates to each subscriber of the MOA and AOA by at least 2 directors and authorized signatory of the company.
- Preparing books and accounts of the company: – Every company has to maintain the books of account in double entry system of accounting. The Company has to prepare the profit and loss account, balance sheet, and an annual return to comply with legal requirements under the Companies Act.
- Commencement of business in 180 days: – The company has to obtain a commencement of business within 180 days of incorporation.
- Applying PAN and TAN of the company: – Right after incorporation the company needs to file for important documents like PAN and TAN for other documentations of the company as well.
- Maintain statutory registers: – companies are bound to prepare and maintain certain Statutory Registers under Section 85, Section 88, etc. of the Companies Act, 2013.
Hence it requires a lot of paperwork and detailed steps to incorporate a company and then adhere to compliance rules and regulations of the company.