Blog Details

Author - Associate Sanjini Shah and Advocate Kaviyanathan D.O.

Having a business of your own is a great feeling altogether. However, the important thing to do is get it registered properly to avoid further issues. Once you have completed your registration procedure successfully, there are certain important things that you will have to perform. Don’t think that just after the completion of your registration all the work is done. You will need to follow a few more legal steps for launching it in the Indian market. The 3 most important things to do after the registration of the company are as follows. 

Here, we will share three crucial things to do after your company is registered. 

1.     Opening Current Bank Account: 

The Company incorporated or registered is required to open its bank account before issuing any shares. The current account is an account where there is no limit on the number of a transaction that can be done in a day and that’s why it is also referred to as Transactional Accounts. These accounts are open for the convenience of the business as these accounts are the most flexible type of accounts. They are neither for the intention of investment or nor for the purpose of saving. 

Banks don’t pay any interest on the amount lying in these accounts and in some cases also ask for the service charge for the provided service. These types of Bank Accounts are usually opened by Registered Companies as their number of transactions are on the higher side.

The procedure for opening a current account for business

Well, most of the Indian banks have the option to register customers with the current account. With all the completed documents which are required to open a current account, you can visit any nearest bank you want. After submitting all the documents and information required by the banker, the banker will verify all documents and on being satisfied, they will open your Current Account.

Documents Required For Opening A Current Account: 

• Basic and important ID proofs or documents required to open an account;

• PAN Card 

• Partnership Deed (in case of Partnership Firm)

• In the case of companies. Certificate of Incorporation, Memorandum of Association and Articles of Association is required.

• The Cheque for opening the Bank Account

• Address Proof of the Firm/ Company/HUF 6. ID and Address proof of all partners/directors 

2.     The issue of Share Certificates: 

As per Section – 56(4) of the Companies Act, 2013 the Share Certificates is to be issued within 2 months from the date of incorporation and 30 days is the maximum period to do with the process of ranking just after the date of the issue of the share certificate.

A Share Certificate is a document issued by company evidencing that the person named in the certificate is the owner of number shares of Company as specified in the Certificate.

Time Period For Issue Of Share Certificates: 

• In the case of Incorporation: Within a period of two months from the date of Incorporation to the subscriber of Memorandum.

• In the case of Allotment: Within a period of two months from the date of allotment of shares.

• In case of Transfer: Within a period of one month from the date of receipt of the instrument of Transfer by the Company

3.      GST Registration

After the company-registration, it is mandatory for you to check the criteria of the GST registration. In case you fall under the purview of GST regime, make sure to get this registration so as to avoid any tax evasions and legal proceeding that follow it. 

Documents Required For Applying GST Registration Are:

• PAN Card of the Business or Applicant

• Identity and Address Proof along with Photographs

• Business Registration Document

• Address Proof for Place of Business 

Digital Signature:

According to the updated government rules and regulations, the GST registration applications must be signed with the digital method specified with Class 2 digital signature. Hence, it is an important step to obtain a digital signature for the following person who is authorized to sign the GST registration application before beginning the application process. 

Conclusion

Thus, it is vital to finish all these steps as soon as your company gets registered. Do not take these steps for granted as avoiding these steps might stop the progress of your company. It can also be a problem legally if you forget any of the steps and so, it is wise to get everything done at once.