Statutory Compliance / Formalities after Incorporation of Private Limited Company

A list of other activities / formalities to be carried out immediately after Incorporation of the Private Limited Company as per Companies Act 2013.

*** Updated as on 7th Setpember, 2014 ***

According to the New Companies act, 2013, after incorporation of the company, every company shall be required to follow the provisions of the Companies Act.

Following are the Post-incorporation formalities / requirements to be followed mandatorily,

A. As per Company Law

1. Appointment of Statutory Auditor

Pursuant to section 139(6) (1) the first auditor of the company, (who is Chartered Accountant), other than a Government company, shall be appointed by the Board of Directors within thirty days (30 days) from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who shall within ninety days (90 days) at an extraordinary general meeting appoint such auditor and such auditor shall hold office till the conclusion of the first annual general meeting.

2. Allotment of the securities

Pursuant to section 56(4)(a), every company shall, deliver the certificates of all securities allotted, transferred or transmitted within a period of two months (2 months) from the date of incorporation , in the case of subscribers to the memorandum.
Therefore it is mandatory to open a Bank account and after opening of company’s Bank Account, each subscriber to the memorandum of association should deposit the amount of subscription money of the shares agreed to be taken by him from their respective account in the company’s Bank account by individual cheque or online.

In case of Default :-
This procedure should be followed as per the provision of the Act because in case of any default, the company shall be punishable with a fine which shall not be less than twenty five thousand rupees (Rs. 25000/-) but which may extend to five lacs rupees (Rs. 500000 /-) and every officer of the company who is in default shall be punishable with fine which shall not be less than ten thousand rupees (Rs. 10000/) but which may extend to one lakh rupees. (Rs. 100000/-)

3. Filing of e-Form INC-21 with Registrar of Companies (RoC)

Pursuant to Section 11 (1) (a) of the Companies Act, 2013, company having share capital shall not commence any business or exercise any borrowing powers unless a declaration is filed by a director with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid up capital of the company is not less than Rs. 1 lakh (Rs.100000/- ) in case of a Private Limited Company.

Pursuant to Section 11 (1) (b) of the Companies Act, 2013, the company has to file with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

Hence, the company shall file e-form INC-21 with the Registrar of Companies within 180 days of date of incorporation of the company along with following documents :-

a. a declaration to be printed on Rs. 100 Stamp paper (duly notarized).
b. Proof of registered address of the company – Latest address proof (Utilities bill – Telephone/Electricity) having the same address as mentioned in the address proof (utilities bill) provided by the Company at the time of incorporation.

B. Other compliances

a. To open a Current account in the name of a company with any scheduled/ nationalized or Private Bank.
b. To appoint a Practicing Company Secretary as a compliance officer in the 1st Board Meeting for complying legal services as required by Companies Act.
c. Keep ready 2 rubber stamps- Rubber Stamps (One round stamp in the name of company and another for the Director)

C. Other Registrations

Application for Shop Act licence (as per Bombay Shop and Establishment Act)
Application for PAN / TAN in the name of company
Registration of VAT/ CST/ SERVICE TAX( If applicable)
Registration of Profession Tax

D. Corporate Stationary

As per Section 12 (3) Every company shall —
(a) paint or affix its name, and the address of its registered office, and keep the same painted or affixed, on the outside of every office or place in which its business is carried on, in a conspicuous position, in legible letters, and of the characters employed therefore are not those of the language or of one of the languages in general use in that locality, also in the characters of that language or of one of those languages;
(b) have its name engraved in legible characters on its seal;
(c) get its name, address of its registered office and the Corporate Identity
Number along with telephone number, fax number, if any, e-mail and website addresses, if any, printed in all its business letters, billheads, letter papers and in all its notices and other official publications;

List of Stationery Items to get

Get a Common Seal (Mandatory)
Statutory Register (Mandatory)
A printed set of Memorandum of Association and Articles of Association (optional)
Minutes Loose Leaf (100 pages) & Minutes Binder (optional)
Share Certificate Book (Minimum 50 Share Certificate) (optional)



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Legal Disclaimer:
The information / articles & any replies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do not constitute legal advice or legal opinions. The information / articles & any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information/article contained without first seeking the advice of a Practicing Professional.

155 thoughts on “Statutory Compliance / Formalities after Incorporation of Private Limited Company

  1. Should be have to file PAS 3 for allotment of shares in case subscribers of MOA have not received shares

  2. Hello Ma’am

    we have incorporated a private ltd co in Bangalore. Now have prepared the share certificates for issuing the same to our investors. For this we need to paste Revenue stamps but the same is banned in Bangalore. Request you to please let us know how to issue share certificate without revenue stamps. Company was incorporated in October last year.

    Thanks
    Malkeet Singh

    • If affixing revenue stamps is banned in Bangalore for issue of share certificates, then company can frank the share certificates. But I think this is also not work because it cannot be made back dated. Then now the share certificates will be issued on current dates after doing franking and then company needs to give explanation to auditor about late issue of share certificates and pay the penalty as per Company law for not issuing certificates within 2 months from date of incorporation.

  3. Dear Mam,
    Our Company was incorporated on 3/10/2016. filling of ADT-1 and MGT-14 are mandatory for appointment of first auditor.

    • Appointment of Auditor in first board meeting within 30 days as per company law is necessary. There is no provision to file ADT-1 after appointment in Board meeting. But once he will be appointed in first Annual general meeting for five financial years, his appointment by filing ADT-1 is compulsory.

    • Mam, a ltd. co. incorporated on 24.07.2013. co. has not done any thing after incorporation. what things or formalities are to be done in regard to ROC for bring it to track, as the promoter wants to start the function of it.

  4. hello mam,
    company incorporate on 28/11/2014
    paid up capital RS 100000
    no other activities is done by business
    so i want to file annual returns so what requirements and what are the forms are required to fill before this
    i think ADT-1
    Audit report
    audited financial statements

  5. Hello madam, my friend has started up a company and hasn’t subscribed for shares as mentioned in MOA and company hasn’t issued share certificate. It’s been almost a year after incorporation. Is there any process or option available to regularize it.

    • The company shall deliver share certificates within 2 months from the date of incorporation of company. This is as per Section 56(4) of Companies Act 2013. Section 56(6) talks about penalty in case of default in complying this provision.

  6. Respected Madam,
    Please help me by advising that what indemnity bonds and affidavits I am to file for closing of Pvt.ltd Co which was incorporated on 15/04/2015, what is the date by which AGM has to be organised though there is no business or finacial tranxactions or very little transactions since incorporation Please help.

    • You will need to buy stamp paper for Indemnity Bond for each director amounting to Rs. 500 each and Affidavit for each director amounting to Rs. 100/-.If the company has not business or financial transactions, AGM is to be held within 6 months from closure of financial year if it is subsequent meeting. If AGM is first, then AGM to be held within 9 months from closure of accounts.

  7. Hello Maam,

    I have incorporated a private limited company.I need to know the share allotment procedure.

  8. Dear Mam,
    Is it necessary to file ADT 1 to appoint first auditor.. ???

  9. Dear mam,
    Our company was incorporated on 2/2/2016, is it necessary to fill ADT-1 ,
    I heard that ADT was not required to fill for first auditor..

    • As per my opinion ADT-1 for appointment of first auditor in Board meeting is not necessary. As per Company law, every company shall file ADT-1 form with ROC for appointment of first auditor in first AGM. There is no specific provision which says that company shall file ADT-1 form after appointment in Board meeting. But the opinion may differ from one professional to another.

  10. After registration of company, MCA provides certificate of incorporation by email.

  11. Respected madam.

    I want to close my pvt .ltd company.
    what is the procedure????pls help me

    • Yes you can close company under FTE Scheme. ( Fast Track Exit). This application can be filed with ROC, with some affidavits, indemnity bond and ROC fees Rs. 5000/-. This is easiest process of closing.

  12. Respected Madam,
    My company newly incorporate on 4th feb 2016.In regards to my new company I am in doubt the following quarries:
    1. As my company opend on 4/2/2016,is it necessary for company audit and roc filling for the period 4/2/2016 to 31/03/2016 separately or along with the next year ending i.e 31st march 2017 including the period 4/2/2016 to 31/03/2016
    2. When ADT1 from is to be submitted in case of my newly company

    • You can close first FY on 31.03.2017. ADT-1 to be filed after being appointed in First AGM i.e. in the next year. But it is advisable to file it after holding 1st Board meeting in which he shall be appointed.

  13. PLEASE tell me the procedure after incorporation of OPC

  14. within how many days of the incorporation should the company receive subscription money from subscribers?

  15. Hi,

    As mentioned in point no.2, Can you let me know which section mandates deposit of initial subscribed capital by subscribers of MOA in company’s bank account or which section prohibits acceptance in the form cash.

  16. Dear Madam,

    What type of rubber stamps are required to maintain after formation of Pvt. Limited firm or OPC? Can you give me a list? And any standard format for it has to follow?

  17. Mam,
    Is MGT14 required to be filed for First Board Meeting of a Private Limited Company. If so for which resolutions is it to be filed
    Thanks in advance

  18. How much time it takes for incorporation of section 25 company after submitting INC7, 22 and DIR 12 forms.

    Thanks

  19. Hi Meenal,

    your post is really commendable…as i m going to start up a pvt ltd co in the month of Dec..
    This post has really helped me in getting into the insight of the formation of a company.

    thanks & regards
    S K Roy

  20. Hi, Thanks for your detailed blog, appreciate if its updated post amendements maid in companies act 2015. I understand INC-21 is not required anymore, not sure if any more changes. I have registered a company in Sep 2015. Please advice what all things i need to follow.

  21. Hi Meenal, I have completed the company formation formalities (Pvt.Ltd) 8 months back but I have not started ant commercial activities so far.
    I expect first activity in coming 3 months.
    although my CA has filed nil returns to Sales TAx dept, now he is asking some formalities and payment to comply something on ROC part, can you tell me what is required and at what cost and what other precaution needs to be taken in future.

  22. Hello Ma’am,

    in the process of share transfer the stamp duty which is paid online i.e on GRAS website is minimum of Rs. 300.
    The stamp duty payment is less than Rs. 300, can franking from bank of the specified amount of stamp duty suffice or do I need to follow another procedure.

    Kindly guide..

    Regards
    Priya

  23. Dear Madam,

    Thanks for Such a valuable information provided by you in such a easy way. Hats Off…!!!

    We have completed the incorporation procedure and got the certification from ROC just 2 days back

    Now i want to know what type of forms we need to file for completion of the formalities .And is there any certifcate or format on which the share certificate is printed and under which form no the auditor is appointed and any other form no which we required to file. So that we are able to fullfil all the compliance formalities.

  24. i want to know the website from where i can learn the details of rules and formalities i have to follow after formation of co.

  25. Hi
    I understand that INC 21 is no longer required to be filed.
    What I’m not clear about is whether this amendment holds good for the companies incorporated before the amendment (in my case, my company got incorporated on 22nd May 2015).
    Please let me know .
    Thanks
    Vivek

  26. Madam,
    First of let me thank you for this nice blog.
    Really helpful.
    Madam, I understand that after receiving letter of incorporation for OPC we are supposed to open a current account and deposit the money through personal cheque.
    I want to know about share certficates.
    Do we need to get them printed or we can allot it on the letter head itself.
    thanks

  27. Now when the certificate of commencement is no longer required. From which date it would be applicable? A company was incorporated in the month of March 2015 do I need to file form INC-21 for the same?

    • Certificate of commencement is required for Private Limited as well as Public limited company, pursuant to Section 11(1)(a) of the Companies Act, 2013 and Rule 24 of the Companies (Incorporation) Rules, 2014] which is declaration prior to the commencement of business or exercising borrowing powers. The company which is incorporated in March 2015, you need to file e-form INC-21 with ROC.

      • Dear mam,

        As companies amendment act 2015 has done away with section 11 in May’2015, do we still need to file commencement of business certificate, if company was incorporated in Dec 2014.

        • If the company was incorporated in December 2014, then commencement of business certificate needs to be filed with Registrar of Companies. The Government has not provided through which form it is to be filed because INC-21 is omitted. Hence I would advise you to contact Registrar of Companies and find the solution how to apply for commencement of business certificate. If you don’t file this then there will be default.

          • Dear Madam,
            I tried to contact Registrar/MCA about the clarification regarding this.But no response.
            A company was incorporated in March 2015, but INC 21 is pending.(business is yet to start). What to do now?
            Is it ok to leave it at that since the section is omitted?
            Thanks
            K

          • No need to file INC-21 if the company is incorporated in March 2015.

      • Hello Madam,

        We have incorpoated OPC in Sept-2014 and yet to file file INC-21 with ROC till date. Do we still need to file it after amendment passed in act.

        Further min share capital Rs.1 lakh as shown in MOA of OPC is not yet subscribed. Can we show it receivable from subscriber. Kindly guide how we can do compliance.

        • If OPC was formed in Sept 2014, INC-21 is to be filed with ROC though Form INC-21 omitted in the month of May 2015. You can show amount receivable from subscriber but the company shall be required to deliver share certificate to the subscriber with zero value to comply the provision of delivery of share certificate within 2 months from the date of incorporation.

  28. Dear Madam,
    I am facing a problem while filing Form 11 of an LLP. Recently I updated Partners details of that LLP by filing Form 4. Now that while filling Form 11, same is not reflecting. Later I saw that we have to submit in “Migrated Designated partner of LLP” after logging in MCA. I tried updating it, I am getting a msg “the details have already been submitted, you cannot proceed further”.
    Please guide me how to go about it.

    • Normally it may the technical issue of MCA. Please try it again. Or else please lodge complaint online with the screen shot of error while uploading e-form 11 because the problem will be resolved within 2 days. Don’t wait till 30.05.2015, do it asap.

  29. Ms. Abhyankar,

    Thanks for your blog. I have two more queries –
    1. A friend of mine has incorporated a company in Nov 2014 but they have not yet appointed a statutory auditors nor through EGM.
    2 They have also not opened bank account yet and have not yet collected the share capital money from subscribers.
    Now the first financial year (ending) Mar 2015 is over so how can these two issues be overcome?

    • 1. File ADT-1 form for appointment of auditor with additional fees, because CA should be appointed within one month in board meeting from company’s incorporation date or within 3 months from incorporation date in general meeting.
      2. This is default and the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five thousand rupees and every officer of the company who is in default shall be punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees.

  30. A pvt ltd company got incorporated with an Authorised Share Capital of Rs One Lac. There are four subscribers to the Memorandum with equal share. Now they want to introduce their share of capital i.e.,Rs 25000/- each in cash and would like to pay off the incorporation expenses in cash. Is there any issue relating to these ?

  31. Great. Thanks for the concise “To do list” write up. Hope to keep in touch.

  32. Resp. Mam,
    I want to know whether change in reumneration of Executive Director (Other than Managing Director & Whole Time Director) requires approval of members in General Meeting.

  33. Dear Meenal ji

    My friend has formed a company for which he has not deposited the amount of share capital in the company’s account since 8 months after incorporation.
    Please suggest the remedy for this situation

    • As per Company Law Section 56(4), the company shall issue certificates to the subscribers within 2 months from the date of incorporation of company. If the subscribers have not deposited the amount, then it will be non compliance and the company shall issue share certificates with zero value within 2 months from date of incorporation with remark that the subscribers failed to pay subscription money on share certificates.

      • Dear mam,

        pls suggest

        What will be the penalty in case shares subscriptions money are not deposited within 2 months, and what is the remedy now?

        • Please refer Section 56(6) of Companies Act 2013. The company shall be punishable with fine not less than Rs. 25000 and extend to Rs. 5 lakh and every officer of company who is in default shall be punishable with fine not less than Rs. 10000 and extend to Rs. 1 lakh.

  34. Ma’am i have registered a private ltd company,which is into wooden flooring sales and installation services and consulting . do need a TIN OR NOT and what about the Service tax and other certificates , please guide me –

  35. Thanks a lot Mrs. Abhyankar, I have read yours posts and must say, it cleared my many doubts/queries.

  36. Thanks for such informative blog. It helped a lot.

  37. Dear Mrs. Abhaynkar,
    I have a question regarding opening up a company in India. we would like to open up a company in India and I understood that there has to be 2 minimum Directors and one should be resident of India, but we don’t want to hire any director from India. Can it be possible to run an organization without making anybody director there. if not, Could you suggest me any possible option in such case.
    Thanks & Regards
    Pri

  38. Thanks a ton ma’am for the very crisp description of the requirement. We are starting up a firm and we were exactly in requirement of these inputs.
    Regards,
    Shiju

  39. These blogs help a lot and actually helps to resolve practical issues such as XYZ affidavit is to be taken on stamp of X amount whereas the act is very discreet about such minute detailings.

  40. Hi Maam,
    We incorporated in the year 2009 as PVT LTD and are running a software business. We are working for a client located in Europe and ship all softwares online. We have PAN and TAN registered apart from trade licence and labour licence. Is it necessary to obtain TIN for our company, as we do not buy or sell any products in India. Is there anything else also we need to be registered with for this business. Please advice. Thanks.

  41. Our limited (unlisted) company started in 2002 suspended operation in 2004. Till 2006 we filed the documents. We have received notice under 220 (3) for not filing the documents for the period 2007 till 2010. The ROC site shows the company as dormant, we have not applied for the same. The directors do not have DIN as it was not applicable in 2002, when the company was incorporated.

    What is the procedure to avail CLSS 2014? do we need to get the company activated from Dormant status to active before submitting the documents? is DIN essential?

  42. Sir/Madam

    what is due date of filing form 8 if LLP formed in Dec 2012 and how figure are worked out reporting period and previous period from ___ to in the form 8

    Thanks
    Parvinder

    • Due date of form 8 of LLP is 30.10. every year. reporting period in form would be from 01.4….to 31.03…..

      • Dear madam

        Thanks for your reply but what i understand that period in case of first filing is of 18 months. My query is how can we have to show this in our Form 8 as period in the online form 8 only allowed data from financial year only and what is the procedure for filing the form 8.

        I once again thanks you for giving your valuable time in responding to my query.

  43. Dear Meenal,

    First of all, allow me to thank you for this great service you are doing here by sharing your knowledge and helping people.

    After nearly 21 years of corporate life, I have just started my own
    “recruitment company” as “sole proprietor” to start my business immediately. I have already opened a current account.

    Being a start-up, I have plenty questions.

    As a proprietorship firm, please do let me know what are the other statutory things I need to comply with.

    regards,

  44. Dear Meenal,

    we have just registered our company as a pvt ltd company & done the above mentioned points.

    Now we are looking for the compliances to run a company i.e. min wages for employees, cash maintain, directors salary etc. do you have any checklist for these works also ??

    awaiting your positive response.

    Thanks
    Sachin Kumar

    • After incorporation of company, you need to open Bank account in the name of company, apply for VAT/ Service tax registration if applicable ( which is depending upon) the nature of business. I am posting the post incorporation formalities soon on my blog.

  45. Hi Meenal,

    We want to alter the business activities of our LLP from what was filed with ROC at the time of incorporation. Can you please advise as to how to go about it?

  46. we incorporated a private company (software solutions) a week back. what are the statutory compliance we need to follow? we have taken MOA, AOA, common seal, TAN, what are the other statutory issues we need to look at? plz suggest.

    • After incorporation, the company shall be required to open Bank account, obtain PAN card and TAN, appoint Statutory Auditor who is Chartered Accountant. After opening of bank account, deposit share application money in that account. For further details please visit my post- Other registration after company registration.

  47. Dear Madam,

    I want to know the procedure for change of name & alteration of main object clause of LLP.

    • For changing the name of LLP, you need to make application for change of name to the Registrar of Companies by filing e form 1. The Registrar of company will approve the name. After the name gets approved, an applicant is required to file form 5 (Notice for change of name) to intimate the registrar about the name change of LLP. While filing form 5, an applicant has to mention the reason for change of name ( either due to change in business or for any other reason).In that case you may need to alter the main object clause of LLP.

  48. Dear Madam,

    I want to know the procedure for change of name, object clause & addition of partner in LLP.

    • For changing the name of LLP, you need to make application for change of name to the Registrar of Companies by filing e form 1. The Registrar of company will approve the name. After the name gets approved, an applicant is required to file form 5 (Notice for change of name) to intimate the registrar about the name change of LLP. While filing form 5, an applicant has to mention the reason for change of name ( either due to change in business or for any other reason).In that case you may need to alter the main object clause of LLP.

      For addition of partner in LLP, the LLP shall be required to file form 3 along with supplementary agreement to include the name of new partner and form 4 ( consent of new partner and subscription sheet of new partner) with the Registrar of Companies.

  49. Great Blog and very informative.
    I want to check with, whether we can use the designation Founder & CEO in LLP.

  50. Dear Madam,

    what does the date of event mean in the MCA site? can you please explain us in brief what all are the requirements for annual filings of a private limited company

    • The date of event in the MCA site means the date of transaction or decision made in the board or general meeting. For complying annual filing, you should hold Annual general meeting year. The gap between two AGM should not exceed 15 months. The audited balance sheet, profit and loss accounts, notes to accounts, auditor’s certificate, notice and directors report should be filed online along with Form 23AC form 23ACA within 30 days from the date of AGM. Annual return with form 20B should be filed within 60 days from the date of AGM.

  51. Dear madam,
    In MOA of private limited it must signed by CA or it will be ok with ICWAI

  52. Dear Mam,
    For a Private Ltd. Company:-
    Can u please let me know after how many days from the date of obtaining the incorporation certificate should we go for VAT registration.? Is there any stipulated time period for this?
    And also kindly let me know whether Service tax registration is different from VAT registration..
    Thanks in advance 🙂

    • It is not necessary that you should apply for VAT registration. But if the company’s nature is buying and selling of products, then it shall be required to apply for VAT registration. Service tax and VAT registration is different.

  53. great blog,valuable sugesions ,fruitful advise

  54. Dear Mam ,
    I have query regarding filing of Din -3 Form,We got our private company registered,Now query is that all the directors who have obtained din for the company incorporation,Now is company is required to file DIN -3 form to MCA,if yes then till what time

  55. Hi Mam

    want to know how to cancel the NOC given to Lisancee for registartion of the company address which is my ownership.

  56. Dear Mam,

    I want to open a foreign company branch office in India.
    Can you advise the procedure for formation, ?

    secondly after formation if business activity is not under progress in initial 1, 2 month then what will be the drawback, ?

    thanks

  57. Hi,

    We have completed our Incorporation, and got the certificate just 10 days back.

    Now we need to complete further proceedings,

    We have applied for PAN.. waiting for updates.

    Please guide us …what next.

    Regards,
    Srilatha

    • After obtaining PAN, the company will have to open Current account and deposit share application money in it. For further guidance please call me.

  58. Ma’am, your blogs are very informative, thanks for knowledge sharing..
    I wish to start a coaching institute and its branches all over India. I would like to know that whether is it possible to start a private limited company for such purpose, since the purpose would be profit making? Pls reply at the earliest.

  59. Hi ma’am,

    could you guide me, a individual (not a CS/ICWA/CA) is authorized for incorporation/formation of company if he know all about procedure of company act, 1956 and other related regulatory body, filing, minutes of meeting and such all the compliance matter , he able to draft AOA/MOA/Maintain register and all.. plz reply
    thanks

    • An individual can file name application and incorporation documents without CS/ CWA/ CA, because as per specified by Ministry, an applicant should sign name application and incorporation form. But Form 1, 18 and 32 which are incorporation forms should be filed in together at once, and Form 18 and 32 requires certification by CA/ CS/ CWA. hence one individual cannot be auhotirsed for incorporation or formation of company. The forms 18 and 32 should be certified by any one of the professionals along with digital signature certificate of director.

      • Many Thanks ma’am!

        If applicant got Digital Signature Certificate / DIN from online login and pay through TCS and e-mudra or other agent, the he/she’s applicable file for incorporation…

        Regds
        krishna k mishra

  60. Thanks for the great blog. I have few questions on the shareholders details . 1) What procedure to be followed when the shareholders are changed. 2) Please which form to be submitted to ROC for informing the change of shareholders. 3) Which official document in ROC to be verified for know the current shareholders details.

    • Shareholding pattern would change because of transfer of shares among them, fresh allotment.
      you can inform ROC about change of shareholders at the time of filing form 20B (annual return). IF the company has made new allotment, then form 2 (Return of allotment) shall be filed to ROC within 30 days from date of allotment.

  61. Dear Meenal,
    Excellent information. Sincere Thanks !!!
    Looking forward to meet you tomorrow.

    Thanks
    Tushar Lambe

  62. Hello Meenal Mam,

    I have read your all post and can say its really informative and straight to understand.

    Your help and information sharing is appreceated !

    My Quick question –

    I have Registerd my company Pvt in April 2010 -11 after that due to business worries company was out of business and we have not carried any formality of maintaining the Pvt Ltd annual Laws nor even paid tax.

    What would be fine and process to carry out all delayed process and pending formalities.

    I want to save my director name going under blacklist.

    Thanks in advance,

    Rohit

  63. Excellent information, hats off for attention to detail and taking off your valuable time in addressing all our queries..

    I have recently registered a pvt. ltd company focussed on IT services. Looking forward to your suggesting on the following:

    1) Any recommendation for banks and the type of account best suited for a small software services company like mine (currently around 2 people, it would potentially grow to 6-8 max in the next 10-12 months. Clients would be a mix of both Indian / as well as UK, Canada or US
    –> Private banks vs Nationalised banks?
    –> Would i be better off opening a current account with a QAB of say Rs. 10,000 or 25,000? [I don’t expect a turnover of more than 30-50 Lakhs in the first year]
    –> I have opted for capital investment of Rs. 1 Lakh as part of incorporation, presume I can straight away use this 1 L deposited as part of bank opening formalities and keep using the amount and ensure that the QAB does not fall below the minimum value prescribed? Is my understanding correct?

    2) Statutory Registers / Share certificate – any specific format available which we can reuse?

    • There are couple of question which felt to be discussed. please call me.

    • Following points should be considered while deciding the banker for opening the Current Account. It doesn’t matter whether it’s a Nationalised or Private/Co-operative Sector Bank.

      1. Choose the nearest convenient location – This facilitates you to do the business transactions at your convenience. Also this could be helpful in case of any emergency or in case of Internet Banking outages/downtime.

      2. Volume / Frequency of Transactions – If the business is expected to have very less transactions (Start-ups or local servicing businesses) then you could even go for any nearest co-operative bank or a private bank. If there are lots of transactions expected (Nationwide) then go for a Private Bank or a Nationalised bank as they would provide a more reliable services with a large number of branches spread across country, secured/high available Internet Banking & other miscellaneous facilities.

      3. Minimum Average Quarterly/Monthly Balance Requirements : Each bank’s policy differs with respect to the Average Quarterly Balance (AQB) or Average Monthly Balance (AMB) requirements, so need to decide on the basis of your Business requirements. If the desired balance is not maintained then some amount of non-maintenance charges are levied by the banks.

      3. Foreign Transactions i.e. inward or outward remittances – Each bank charges some amount of foreign currency payment/collection fees & also the Service tax on the conversion charges on FCY (Foreign Currency) or LCY (Local currency). The charges differs from bank to bank & may depend/change on the basis of frequency, amount & number of transactions. So based on your business needs/expectations you could check different banks.

      4. Loan requirements : Loans are made available easily with the Co-operative banks or Private Banks. Nationalised banks have a bit of stringent rules for processing the loans viz. They may ask for last 2 years balance sheet of the business. So if your business forsee any immediate loan requirements (after Company formation) you may choose Co-operative or Private Banks over the Nationalised banks.

      5. Other Miscellaneous facilities to consider : Cash credit/overdraft facility, Free Cheque book/leaves, Free transactions each month, Free NEFT/RTGS, Rebate on Annual charges if the AQB/AMB maintained exceeds some specified amount.

    • And yes, you can keep the Capital investment as part of Incorporation & use the same amount to maintain the Current account minimum balance requirement.

  64. Dear Madam,

    Firstly, I would like to convey my sincere thanks to you for maintaining such a valuable, informative and qualitative Blog which is in real sense proved to be a knowledge centre to all who are not belonging to this field and seek the right advise/ information / solution to their queries.

    Madam, I have recently resigned froma private limited company as a promoter/director after approx. 14 months of its incorporation. I have submitted my resignation to one of two remaining directors and have obtained his signature on my copy of letter. I have also submitted a letter to RoC informing them about my resignation duly attached copy of my resignation letter. Now, I have learnt that the company has still not filed Form-32 following my resignation. I am an insurance surveyor licensed by IRDA and for change in status of my license (corporate to individual), IRDA has asked me to submit (a) RoC confirmation of Form-32 & Form-18 (b) copy of company’s board resolution accepting my resignation and (c) copy of IRDA coprorate license. Hence, I have requested both directors to complete the RoC procedure at the earliest but inspite of it, the same is not done by them and as it is beyond my control, I am totally confused and lost. I would be very much thankful if you kindly advise me further course of action to solve my said problem.

    Best Regards,
    Harish Bhatt

    • If you have already resigned from directorship of the company, the company shall be required to file form 32. It is the responsibility of the company to file form 32 and not of you. Once you have submitted resignation letter, your role as director would come to an end with effect from the date of resignation. i would advise you that if the company has not filed form 32 in spite of reminders, you can send resignation letter addressing to the company to the Registrar of Companies and get acknowledgment from ROC and send one letter to the company’s address by Registered AD and obtain acknowledgment from the post. Then you can submit these copies to IRDA for their confirmation.

      • Dear Madam,

        I thank you for your valuable advice and I will proceed further according to your guideline.

        Best Regards,

  65. hi, great blog, i would love to see more from you.

    can you also write about how to run a PVT LTD for the absolute beginner , the basic minimum structure it must have and what records compliances etc. are to be filed and how is it done

    • I have already mentioned on blog about the post incorporation formalities.
      Regarding basic structure to a run company, please await for further articles.

  66. maam,

    after we register company, then a current account in name of company is to be opened with deposit of subscribers amount..
    my question is for what duration is it necessary to keep the deposit in account??
    or can company use it after deposit… the other day itself???

    • After incorporation of Private Limited company/ Public company, the subscribers who has undertaken to subscribe share application money, shall be required to pay subscription money in the Current account of the company. There is no time limit mentioned in the Companies Act for deposit of subscription money. But you have to deposit it till the end of the first Financial year. It means that the paid up capital of the company should be the same as capital mentioned while incorporation on the date of closing of accounts for the first financial year.

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