Commencement of Business Certificate Services
Commencement of Business Certificate – Services by Deepak Prakash & Associates
The Commencement of Business Certificate is a critical document issued by the Registrar of Companies (ROC) in India, signifying that a company is legally authorized to commence its business activities. This certificate is especially important for companies incorporated as private limited companies or public limited companies, and it marks the final step in the company’s incorporation process.
At Deepak Prakash & Associates, we offer comprehensive services to assist you in obtaining the Commencement of Business Certificate for your newly incorporated company. Our team of experienced Chartered Accountants ensures that your company complies with all the necessary regulations and requirements to successfully obtain the certificate, allowing you to begin your business operations without delays.
What is Commencement of Business Certificate?
The Commencement of Business Certificate is a mandatory document required for companies registered under the Companies Act, 2013. This certificate confirms that a company has completed all its incorporation formalities and is now allowed to commence its business activities.
For companies incorporated after November 2018, obtaining this certificate is a requirement under Section 10A of the Companies Act, 2013. A company must obtain the Commencement of Business Certificate before starting its business or operations, and it is essential for compliance with the law.
Who Requires a Commencement of Business Certificate?
Private Limited Companies: Any newly incorporated private limited company must obtain a Commencement of Business Certificate before starting its operations.
Public Limited Companies: Similar to private limited companies, public companies also need the certificate before starting business activities.
One Person Companies (OPCs): OPCs incorporated after November 2018 are also required to obtain the Commencement of Business Certificate.
Why is Commencement of Business Certificate Important?
Legal Requirement:
- Obtaining the Commencement of Business Certificate is a legal obligation for companies under Section 10A of the Companies Act, 2013. Non-compliance with this requirement can result in penalties or legal complications.
- Obtaining the Commencement of Business Certificate is a legal obligation for companies under Section 10A of the Companies Act, 2013. Non-compliance with this requirement can result in penalties or legal complications.
Activation of Company Status:
- The certificate signifies that the company has completed the legal formalities required to begin its business operations. Without this certificate, the company cannot engage in commercial activities, hire employees, or enter into business contracts.
- The certificate signifies that the company has completed the legal formalities required to begin its business operations. Without this certificate, the company cannot engage in commercial activities, hire employees, or enter into business contracts.
Required for Bank Account Activation:
- Banks typically require the Commencement of Business Certificate before allowing the company to open its business bank account and begin financial transactions.
- Banks typically require the Commencement of Business Certificate before allowing the company to open its business bank account and begin financial transactions.
Transparency for Stakeholders:
- It ensures that all relevant authorities, including regulatory bodies, investors, and creditors, are aware of the company’s readiness to commence its operations.
- It ensures that all relevant authorities, including regulatory bodies, investors, and creditors, are aware of the company’s readiness to commence its operations.
Prevention of Shell Companies:
- The Commencement of Business Certificate ensures that newly incorporated companies are not merely shell companies with no intention to operate, thereby promoting business transparency and reducing the risk of fraudulent activities.
Eligibility and Requirements for Obtaining the Commencement of Business Certificate
A company can apply for the Commencement of Business Certificate only after fulfilling the following conditions:
Incorporation of the Company:
- The company must be duly incorporated with the Registrar of Companies (ROC), and the incorporation process must be completed under the Companies Act, 2013.
- The company must be duly incorporated with the Registrar of Companies (ROC), and the incorporation process must be completed under the Companies Act, 2013.
Share Capital Deposit:
- The company must deposit a minimum required share capital into the company’s bank account. This is generally the subscribed capital as stated in the Memorandum of Association (MOA) of the company.
- The company must deposit a minimum required share capital into the company’s bank account. This is generally the subscribed capital as stated in the Memorandum of Association (MOA) of the company.
Filing of Declaration:
- A declaration must be filed with the Registrar of Companies (ROC) by a director confirming that the company has:
- Received the payment for the shares.
- Paid up the minimum share capital.
- Has no pending legal issues with respect to its incorporation.
- A declaration must be filed with the Registrar of Companies (ROC) by a director confirming that the company has:
Filing Form INC-20A:
- The company must file Form INC-20A (Declaration for Commencement of Business) with the Registrar of Companies (ROC). The declaration must be submitted within 180 days from the date of incorporation.
- The company must file Form INC-20A (Declaration for Commencement of Business) with the Registrar of Companies (ROC). The declaration must be submitted within 180 days from the date of incorporation.
Director’s Declaration:
- The director(s) of the company must sign a declaration stating that the company has received the subscription amount for the shares and that the minimum required capital has been deposited into the company’s account.
- The director(s) of the company must sign a declaration stating that the company has received the subscription amount for the shares and that the minimum required capital has been deposited into the company’s account.
Bank Account Details:
- The company must provide the bank details showing that the minimum share capital has been deposited in the company’s bank account.
Procedure for Obtaining Commencement of Business Certificate
Here’s the step-by-step process to obtain the Commencement of Business Certificate for your company:
Complete Company Incorporation:
- The company must be registered under the Companies Act, 2013. This involves filing the necessary incorporation documents such as the MOA (Memorandum of Association) and AOA (Articles of Association) with the Registrar of Companies (ROC).
- The company must be registered under the Companies Act, 2013. This involves filing the necessary incorporation documents such as the MOA (Memorandum of Association) and AOA (Articles of Association) with the Registrar of Companies (ROC).
Open a Bank Account:
- Open a business bank account in the name of the company and deposit the required share capital in the account.
- Open a business bank account in the name of the company and deposit the required share capital in the account.
Submit Form INC-20A:
- The company’s director(s) need to file Form INC-20A with the Registrar of Companies (ROC) within 180 days of incorporation, declaring that the company has received the minimum capital requirement.
- The company’s director(s) need to file Form INC-20A with the Registrar of Companies (ROC) within 180 days of incorporation, declaring that the company has received the minimum capital requirement.
Attach Required Documents:
- Attach the necessary documents with Form INC-20A, including:
- Bank account statement showing the deposit of share capital.
- Director’s declaration confirming the capital deposit.
- Attach the necessary documents with Form INC-20A, including:
ROC Verification:
- The Registrar of Companies (ROC) will verify the submitted documents and declaration. If everything is in order, the ROC will issue the Commencement of Business Certificate.
- The Registrar of Companies (ROC) will verify the submitted documents and declaration. If everything is in order, the ROC will issue the Commencement of Business Certificate.
Certificate Issuance:
- Once the ROC is satisfied with the submission, it will issue the Commencement of Business Certificate, allowing the company to legally begin its business operations.
Timeline for Obtaining Commencement of Business Certificate
The timeline to obtain the Commencement of Business Certificate depends on the timely submission of the required forms and documents. The Form INC-20A must be filed within 180 days of the company’s incorporation. The ROC generally processes the application within 7-10 business days, provided there are no discrepancies in the documents.
Consequences of Not Obtaining Commencement of Business Certificate
Inability to Commence Business:
- The company cannot begin any business activities or operations without obtaining the Commencement of Business Certificate.
- The company cannot begin any business activities or operations without obtaining the Commencement of Business Certificate.
Legal Penalties:
- If a company fails to file for the Commencement of Business Certificate within the required time, the company may be liable for penalties, and the Registrar of Companies (ROC) can initiate action against the company, including striking off its name from the registry.
- If a company fails to file for the Commencement of Business Certificate within the required time, the company may be liable for penalties, and the Registrar of Companies (ROC) can initiate action against the company, including striking off its name from the registry.
Striking Off Company:
- If the company does not commence its business activities within one year of its incorporation, and the Commencement of Business Certificate is not obtained, the company can be struck off from the ROC.
Why Choose Deepak Prakash & Associates for Commencement of Business Certificate?
At Deepak Prakash & Associates, we specialize in helping newly incorporated companies obtain their Commencement of Business Certificate seamlessly. Our team of Chartered Accountants ensures that all necessary steps are followed and your company remains compliant with the regulatory requirements.
Here’s how we can help you with the Commencement of Business Certificate:
Expert Consultation:
- We provide expert guidance on the Commencement of Business procedure and help ensure that all documents are in place.
- We provide expert guidance on the Commencement of Business procedure and help ensure that all documents are in place.
Form Preparation & Filing:
- We assist in preparing and filing Form INC-20A with the Registrar of Companies (ROC) on your behalf.
- We assist in preparing and filing Form INC-20A with the Registrar of Companies (ROC) on your behalf.
Bank Account Assistance:
- We assist in setting up your company’s bank account and ensuring that the required share capital is deposited in compliance with regulations.
- We assist in setting up your company’s bank account and ensuring that the required share capital is deposited in compliance with regulations.
Timely Compliance:
- Our team ensures that all filings and formalities are completed within the prescribed deadlines, allowing you to start your business without any delays.
