Business Plan

Starting a Business? Better Make Sure It’s All Smooth Sailing!

Starting a business is exciting, thrilling even, but requires things that need to be taken care of in a serious manner too. After all, you don’t ever want your newly launched dream turning to ashes for lack of something like compliance!

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Congratulations! You have registered your company and taken the first steps towards realising your business dreams. However, before proceeding with your activity, there are a few things that you need to take into consideration to avoid any future challenges while running your company. Most of these things involve processes that ensure you’re on the right side of the law and do not land either yourself or your company in any trouble. 

In order to ensure that you are company ready, you need to check if all the t’s are crossed and the i’s are dotted, and that you comply with the rules and regulations put by the Ministry of Corporate Affairs. Non-compliance means hefty fines and new companies do not want to begin their corporate journey paying fines because they forget to meet certain rules and regulations. These compliances are especially important when you are involved with Foreign Direct Investment. Additionally, some of the critical factors while setting up a company include the following

  • Having a PAN Card
  • Having a proper company bank account: However, do note that banks have to be informed of incoming remittances from non-resident subscribers
  • Regular company audits
  • Applying for GST
  • Acquiring an Import-Export licence

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Besides these, you are also required to do the following  

1. Maintaining a Registered Office

The Ministry of Corporate Affairs has made it mandatory for all companies in India to have a registered office. Once a company is registered, the organisation should file the registered office address from INC-22 within 30 days of getting registered. Additionally, the registered office can be a corporate building or residential complex. Likewise, it doesn’t matter if it’s owned or rented as long as you have approval documents such as NOC or proof of address to prove that you are allowed to have business operations

2. Board Meeting

The Central Government has specified that all new registered organisations have to conduct a board meeting within the first 30 days of incorporation. Moreover, the first board meeting usually has the following discussion 

  1. Approvals to open a current account with a registered bank
  2. Appointing the statutory auditor
  3. Authorising statutory registrations 

3. Letterheads

As an organisation, it is imperative that you have letterheads of your company printed. Similarly, the letterhead should contain the registered office name, address, CIN, phone number, as well as email and website 

4. Board Outside the Office

New companies are required to put outboard outside their office premises that state their name, and the registered office. Likewise, this helps people find the premises easily and helps you find new clients

5. Registering for GST

GST and IEC Code registration is mandatory as it is required for all business proceedings and transactions

6. Opening a Bank Account

All new companies need to open a current account with a bank of their choice. Once done, the promoters have to contribute the prescribed subscription money 

7. Non-resident Inward Remittance

If your organisation’s subscribers are NRIs, then their contribution towards the company will come via inward remittance. Moreover, you will have to inform your bank or the RBI about this within the first 30 days of registration

8. Share Certificate Issuing

Section 10(2) of the Companies Act, 2013 indicates that all money payable by any member of the company under the Memorandum of Association or Articles of Association will be counted as a debt to the company from the particular member. Further, Section 56(4) of the act also dictates that the company should issue share certificates to the Memorandum Subscribers within 2 months of the date of the company registration

9. For Non-residents, an FC-GPR

After reporting inward remittance, the company has to file the FC-GPR form

10. Stamp Duty

Stamp Duty has to be paid within 30 days of issuing the share certificates. Moreover, stamp duty varies from  State to State and therefore the amount is determined by the state in which the office of the company is registered.

11. PF

If your organisation has over 20 employees, then you can deduct a PF contribution 

12. Maintaining registrars and minute books

According to the 2013 Companies Act, if a company fails to maintain the prescribed books they might be looking at some fines under the penal provisions of the act.

13. Member Registration

Names and details of subscribers have to be detailed and documented in the Register of Members with the date of incorporation of the company as the date  

 

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