Requirements of Single Member Company

Requirements of Single Member Company Corporate Corporate Law Knowledge – Corporate Law Solutions - Corporate Law The single member company, once incorporated, has to comply with the requirements of Company Law. The basis compliance requirements of single member company are as under:

Director of every company are required to appoint the first chief executive not later than fifteen days from the date of incorporation and thereafter within fourteen days from the date of election;

The first auditor is required to be appointed by the director within sixty days from the date of incorporation and thereafter in each Annual General Meeting (“AGM”) of the company;

A single member company is also required to appoint a company secretary within fifteen days of incorporation or of becoming a single member company or of the office of company secretary falling vacant and notify such appointment on Form 29 within fourteen days of the date of such appointment;

Any appointment, election or change in the Director, Chief Executive, Auditors, Chief Accountant, Legal Adviser etc is required to be notified to the registrar concerned on Form ’29’ within 14 days of the said election, appointment or change;

A company is required to notify the change in its registered office on Form-21 within 28 days from the date of change;

First AGM of the company is required to be held within eighteen months from the date of incorporation and subsequent AGM are required to be held once at least in every calendar year, within a period of four months following the close of its financial year and not more than fifteen months after holding of its last preceding AGM;

Annual return on prescribed form as applicable is required to be filed with the registrar concerned once in each year made as on the date of AGM, where no such meeting is held, on the last day of the calendar year;

In case of increase in paid-up capital, the company is required to offer new shares to the existing shareholders and the offer is required to be accompanied by a circular issued under section 86(3) to all the shareholders strictly in proportion to the shares held by them and, on the allotment of shares, return of allotment on Form ‘3’ is required to be filed with registrar concerned within 30 days from the date of allotment of shares;

Particulars of every mortgage or charge created by the company on its property or undertaking and every modification therein or satisfaction thereof are required to be filed and registered with the registrar concerned within 21 days after the date of its creation, modification or satisfaction; and

In case of death of single member of a single member company, the secretary shall manage affairs of the company till transmission of shares to legal heirs of the single member, and inform the registrar concerned about the death, provide particulars of the legal hairs and in case of any impediment report the circumstances seeking within seven days of the death of directors in the form as set out in Form S-3.

Further information for post-incorporation requirements of a single member company can be solicited from AUJ LAWYERS. Feel free to contact us in case you need any clarification and/or require assistance regarding post-incorporation requirements of a single member company.