1. Incorrect Details in MOA / AOA
MOA AOA are very important documents of a Pvt. Ltd. company. Especially the objectives clause, where the objectives of the company are listed. There might be problems down the road if there is some error or omission of some objectives. Especially when applying for loans or for bank account. So, be sure about the objectives, keep your objectives broad and be sure the objectives are in line with your company.
2. Not submitting initial submission requirements.
Most of us are completely unaware of these requirements. Not anymore. A company has to file different details such as information of address, information of Appointment of auditors, Minutes of meetings etc. Non submission of these details on time attract fines. So prepare these details, allot shares, prepare details of shareholding and submit to the OCR, get share lagat and then our initial filing requirement is completed. Now all you have to do is submit annual report every year.
3. Registering a company but not registering an industry.
These are two different things governed by two different acts. Registering a company is governed by The companies Act while registering a industry is governed by Industrial Enterprises Act which delegates its power to the respective provincial laws. So depending on the nature of your business, you should register your company at the local level, Gharelu office, Banijya office or Department of Industries.
We get asked this question a lot
We have already registered a company, why do we need to register again as an industry?
Well we are with you in this one. But it is what is it. Industrial Enterprises Act was enacted to help in promotion of Industries, but in our opinion, for small level entrepreneurs it has just become a liability. We hope the government introduces a one stop registration channel where a single authority can handle all administrative tasks of registering a company.
4. Not maintaining proper books of a company.
“आफ्नै बिजनेस त हो किन खाता राखिराख्नु पर्यो “. Most of us do not even care to prepare books. If you are new to all this, we advise you to learn at least basics of finance and accounting. Or if that’s too much for you hire an entry level accountant who can take care of all these Or you can also contact us for accounting needs. Preparing books helps you to understand about the financial parts of your business, if you are making loss or profits.
5. Registering a company without even needing it.
We have come across various clients who have registered a company but have not submitted any details because they have now realized they do not need the company. You should avoid making the same mistake. Take help from a consultant whether you actually need to register a company. If you are a single shareholder, you don’t want to raise funding or public reputation doesn’t matter much, you can simply register a private firm and get free of all the hassles.
