Are you planning to start an online business? With the advent of the internet, all the business enterprises are becoming conscious of increasing their visibility and revenue via online. Irrespective of the size of the business, the objective is to reach the maximum number of customers within the shortest possible time. However, you need to keep the legal compliance requirements in mind before commencing any business.
Develop an understanding
While conducting business in any part of the world, it is necessary to develop an understanding of some of the evolving policies of the government. You also have to bear in mind the various amendments associated with the legal statutes and incorporation of new laws.
The Companies Act lays down all the provisions concerning the appointment, removal, remuneration, qualification, etc. Retirement of directors, shareholders meetings, resolutions, books and accounts matters must be in the annual reports of the organizations. As soon as all the legal formalities are satisfied, a Certificate of Incorporation is issued. Now a company gets the treatment of a separate legal entity distinct from the members responsible of forming it. After the first phase is complete, several further steps are next in line.
Just after incorporation, several matters have to be in consideration of the first Board meeting. After that, there are other matters which members must take care of on a regular basis. The operations of a company run through the directors. They are responsible and see to that the company’s adherence to all the compliances.
A director has to hold the first board meeting within thirty days of incorporation. All the members should be notified of such event along with the agenda before a period of seven days before the meeting. Quite a few issues need resolution at this first board meeting. Just outside the registered office, it is mandatory to have a board stating the specifics such as the name, registered office address, company identification number, email id and phone number.
You may provide the website address and fax number too. All these details should also be provided in the business letterheads, bills, and other official documents. Just after incorporation, a company must apply for Pan and TAN.
Preparation of minutes
Company should maintain all documents relating to the convening of board meetings at regular intervals, along with preparation of minutes of the meeting by the Board of Directors. This task should continue till the termination of the company. All minutes duly signed are required to be placed in a binder within thirty days of the meeting.
The company must provide share certificates to the responsible members. All those details must be in the members register and share allotment register. Every financial year, all companies must file their financial statements. These include balance sheet before the due date with the Registrar.
Healthy work culture
Apart from these general law firms, there are numerous laws which govern the smooth functioning of the business. Depending on the location of the company, business is to adhere to the laws of the respective state or city. The hiring of experts help in the minimization of disputes. As a result, all this leads to the development of a healthy work culture.