Commencement of Business Certificate
Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital is required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers. Since the Companies (Amendment) Ordinance 2018 was introduced in November 2nd 2018, any company incorporated after 2nd November 2018 would be required to obtain Commencement of Business Certificate.
It is a Declaration to be issued by the directors within 180 days of incorporation of company stating that the subscribers to the Memorandum of the company has paid the value of shares so agreed by them. This declaration need to be filed along with Bank Statement (proof of subscription money received by the company) in form 20A with the Registrar of Companies.
Who need to file declaration for Commencement of Business?
Every company having share capital incorporated after 2nd November 2018
Even the Section 8 Companies having share capital need to file form 20A
Time limit for obtaining commencement of Business Certificate:
within 180 days of incorporation of the company.
Documents for Commencement of Business Certificate
- CONSEQUENCES IF FORM IS NOT FILLED WITHIN TIME
- Penalty to be levied on Company
- Penalty to be levied on Directors
- Company Strike-Off