Now that you must have digested the first recipe, it’s time that you should start cooking the next one. Well, most of the people I have come across uptil now tend to be clueless about the compliances which are required to be followed after the incorporation of a company.
But, you don’t have to be clueless as the Corporate Wizard is here to do the magic. Now sit back and enjoy.
INGREDIENTS (What you need to follow the compliances):
Nothing ! – What a relief, isn’t it….??
MAGIC SPELL (Now let’s get serious):
STEP 1– Apply for allotment of PAN for the Company. Here’s the link of instructions for application-https://tin.tin.nsdl.com/pan/ . Also apply for allotment of TAN- if your company is providing the services on which tax is required to be deducted at source. Here’s the link for the process to be followed-https://tin.tin.nsdl.com/tan/form49B.html.
STEP 2– Open a bank account in the name of the Company (It should be current account). Well of course for depositing money into it and relishing the profits you will be earning during the course of time.
STEP 3– Deposit money in the bank account of the Company, as much as you want, for it to commence its business and you will get in return the shares. YEAH!!!! You are going to be the owners/members of the Company.
STEP 4– After depositing money, hold a Board Meeting. YES!! You read it right- Board Meeting- now you must be thinking what constitutes the Board? It’s you and your mate, the directors of the Company who shall constitute the Board. Board Meeting, but for what? Board Meeting shall be held for passing resolutions (Not the new year ones- These are the serious ones…!!!!).
STEP 5– How to call a Board Meeting- Its easy- send a notice stating the time, date and venue for holding such meeting via e-mail to the directors of the Company attaching the agenda with it. The agenda shall state the items/resolutions that shall be passed in the board meeting. The list is as follows: (You can copy ;-))
- To take note of certificate of incorporation (which you must have received via ane-mail from the Registrar of Companies)
- To take note of first directors of the Company- That will be you and your mate(s)
- To take note of the registered office of the Company
- To appoint first auditors of the Company- First auditors shall be a practicing CA who will be auditing the accounts of your Company.
- Allotment of Equity Shares (Yes, these are the ones referred in Step 1) and issue share certificates.
- To approve reimbursement of preliminary expenses(Expenses incurred by you for incorporation/floating of the Company)
- To authorize any one or more of the directors to sign/execute various documents/forms/agreements/contracts, etc. on behalf of the Company.
- Any other matter you want to discuss.
STEP 6– Hold the Board Meeting on the designated date and time. Pass all the resolutions as stated in Step 5.
STEP 7– Draft the minutes. It is not much of a task. Remember the time you used take notes in school and college when the professors used to go on and on without stopping ????(assuming you were a serious student). It is verbatim same. Whatever you discuss at the meeting you need to take notes sans the chit chat you were doing about Sharma ji eating 4 samosas….!!! Minutes need to be serious.
STEP 8– The Company shall pay stamp duty on the share certificates issued. The stamp duty shall vary from state to state, depending upon the state in which you have incorporated your company. Don’t worry google is there to help- Just type “stamp duty payable in [Name of the State] for issue of shares”. Read the stamp act, of the respective state. You will get to know about the stamp duty required to be paid. OR you may simply contact a professional CA/CS/Advocate, and they will get your work done in a jiffy.
DONE..!!!!!!!!! YOU MAY NOW START EARNING SOME MONEY. ALL THE BEST.
For any further details or queries you may mail me at firstname.lastname@example.org