A company is an entity that is given the same legal status as a person, no matter what type of a company it is.
The formation of a company is the most critical phase of its lifetime, requiring attention, precision, and an in-depth understanding of all the relevant laws.
Companies considered to be fraudulent incorporations created as cover agencies for illegal financial activities have been struck off by the Ministry of Corporate Affairs. Many of these companies are completely legal entities that have only been struck off because they did not meet some basic obligations meant for corporate entities. The Directors of such companies are no longer allowed to do business or operate accounts in the name of the company, and they also become disqualified for a period of five years. They cannot form a new company or be appointed or reappointed in any other company in those five years. However, the detection and completion of some incomplete paperwork with the National Company Law Tribunal [NCLT] can be done to revive any legal company that has been struck off.
When Company is formed or established, there are certain obligations required to be carried out by the Company being a Corporate entity. These includes taking meetings of the Board of Directors , one Annual General Meeting of shareholders, maintaining miniatures of the Company, maintaining some statutory book as per Companies Act, 2013, Issue of share Certificates, filing of Annual Return and Financial statements with Registrar of Companies, filing of some event based forms with Registrar. Some resolutions are required to be drafted, some agreements / MOU etc. are to be drafted. Liasioning with regulatory authorities, support for taking some corporate actions like – increasing authorized capital, issue of shares, change of name, change of object, alteration of Memorandum of Association and Articles of Association of the Company , shifting of Registered office of the Company etc.
AS per section 204 of the Companies Act, 2013, every Listed Company and every public company having a paid-up share capital of Rs. 50 Cr.or more; or every public company having a turnover of Rs. 250 cr.shall get done Secretarial Audit done by a Practicing Company Secretary and shall annex such Audit report with its Boards report in form MR-3.