Congratulations on registering your public company in India! This is a huge accomplishment, and there are several steps that you need to take in order to make sure that your business is fully compliant with all Indian laws and regulations. In this blog post, we will outline the steps that you need to take in order to get your business up and running. Let’s get started!
What are the steps after public company registration in India?
After completing the public company registration process, companies must take the following steps to remain in compliance with Indian law:
1. Appoint a Company Secretary: All public companies must have a dedicated full-time or part-time Company Secretary who is responsible for ensuring that all compliances and filings are made on time.
2. Compliance with the Companies Act: All public companies must adhere to the provisions of the Companies Act and file all relevant documents, such as annual returns and financial statements, on time.
3. Register for Taxation: Public companies need to register for taxation purposes with the Indian government so they can pay taxes in accordance with applicable laws.
4. Register for Know Your Customer (KYC): All companies must register with the KYC Registrar to ensure compliance with anti-money laundering regulations and customer identification protocols.
5. Obtain PAN & TAN: Public companies must obtain Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) from the Income Tax Department for taxation purposes.
6. Obtain DIN & DSC: Directors of public companies must obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC) so they can file various forms with the government authorities electronically.
7. Register Employees Provident Fund: Public companies must register with Employee Provident Fund Organisation (EPFO) if they have more than 20 employees and make payments into their provident fund accounts.
8. Register with the Stock Exchange: Public companies must register with a stock exchange to enable them to list their shares on the exchange and enable investors to trade in those shares.
9. Open Bank Account: Public companies must open a bank account with a scheduled bank to enable them to receive payments from customers and make other financial transactions.
10. Obtain Factory License: If the public company is involved in manufacturing activities, it must obtain a license from the local government for its factory premises.
These are some of the steps that need to be taken after a public company registration in India. It is important for companies to ensure that all the necessary steps are taken and all compliances are met in order to remain in compliance with the applicable laws.
How do I add people to my public company in India?
Adding people to a public company in India can be done through the Companies Act, 2013 and the Rules made thereunder. The process involves filing a form with the Registrar of Companies (RoC) along with relevant documents. This includes:
• A declaration from each director stating their willingness to join the board as directors;
• A board resolution of the company, approving the appointment and adding the new director to the board;
• Form DIR-12, which is a form for appointment of directors in a company;
• Form MBP-1, which is a consent letter from individual directors accepting their appointment as directors on the board;
• Proof of identity and address for all directors, including the new ones;
• KYC documents from each director (if applicable);
• Registration fee to be paid with the RoC.
Once all of these documents have been submitted along with Form DIR-12 and MBP-1, the RoC will approve the new directors and issue a Certificate of Incorporation. This certificate serves as proof that the directors have been officially added to the company.
How to Maintain a Public Limited Company in India?
Public limited companies are one of the most popular forms of incorporation in India. While setting up a public company is relatively easy, though it requires a few more steps than registering as a private limited company, it also has to be maintained according to certain legal and regulatory guidelines as stipulated under the Companies Act 2013. The following are some of the important steps to be taken for maintaining a public limited company in India:
1. Ensure mandatory filing of annual returns and financial statements: As per the Companies Act 2013, all public limited companies must file their audited accounts and balance sheets along with necessary details such as the directors’ report and their respective responsibilities, articles of Memorandum & Association, and the company’s annual return. The due date for filing these documents is 30th of September every year.
2. Comply with corporate governance requirements: Companies Act 2013 requires public limited companies to comply with certain corporate governance guidelines, such as conducting regular board meetings, maintaining proper records, appointing independent directors and auditors, and adhering to the code of conduct.
3. Ensure proper staffing: Companies Act 2013 requires that all public limited companies have an adequate number of competent employees with sufficient expertise to carry out their business operations effectively. The law also mandates that every company must have a minimum of two directors on its board, at least one of whom should be an Indian resident.
4. Follow reserve and dividend policies: The Companies Act 2013 outlines the requirements for reserving funds and declaring dividends by public limited companies. It mandates that a company must set aside a certain percentage of its profits each year as reserves, depending on the nature of its business activities. Further, it requires that dividends should be declared at least once a year, and that the amount should be reasonable given the company’s profitability.
5. Comply with the law on insider trading: The Companies Act 2013 prohibits any action by an insider of a public limited company that would constitute illegal trading in its shares or securities. Insiders are not allowed to make any material disclosures regarding the company’s affairs or its stock to any other person.
By adhering to these steps, businesses can ensure they are in compliance with the Companies Act 2013 and maintain their public limited company status in India. It is important to note that failure to comply with these requirements could result in stringent penalties or even deregistration of the company. Thus, it is necessary to seek professional advice in order to maintain a public limited company in India.