Certificate of Commencement of Business

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Initial Setup only

  • Filing and Maintenance Requirements

    To obtain Commencement of Business Certificate after incorporation of the company the public company has to complete the following requirements:

    1.File a declaration in eForm 20 and attach the statement in lieu of the prospectus (schedule III) OR File a declaration in eForm 19 and attach the prospectus (Schedule II) to it.

    Additional steps to be taken for registration of a Part IX Company:

    1.The Part IX Company is required to file eForm 37 and eForm 39 apart from filing eForm 1, 18 and 32.
    2.The company is required to file eForm 1 first and then the company can file all the other eForms (18, 32, 37 and 39) simultaneously or separately.

  • Penalty

    The company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues. Where no declaration has been filed with the Registrar within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, initiate action for the removal of the name of the company from the register of companies.

  • Application Guidelines / Responsible Persons / Comments

    As per section 11 of Companies Act, 2013, now all newly incorporated Public and Private Companies having Share Capital would be required to obtain certificate of commencement of business from concerned Registrar of Companies before commencing the business or exercise of borrowing powers.

    Please visit the following link for more guidelines: http://www.mca.gov.in/MinistryV2/steps.html