ALL ABOUT THE CERTIFICATE OF COMMENCEMENT OF BUSINESS UNDER THE COMPANIES ACT, 2013
INTRODUCTION:
The Ministry of Corporate
Affairs has re-introduced the concept of commencement of business certificate.
Under the newly introduced The
Companies (Amendment) Ordinance 2018, all 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 November 2018 would be required to obtain
Commencement of Business Certificate.
CERTIFICATE FOR COMMENCEMENT
OF BUSINESS
Under the Companies (Amendment) Ordinance, 2019, a
new Section is introduced i.e. Section 10 A for Commencement of Business.
Section
10 A- COMMENCEMENT OF BUSINESS
*MANDATORY TO OBTAIN CERTIFICATE OF
COMMENCEMENT OF BUSINESS FOR REGISTERED COMPANIES:*
APPLICABILITY
Companies
registered on or after November 02, 2018 are required to file the declaration
for commencement of business with the Registar of companies
*TIME LIMIT FOR FILING:*
The declaration for commencement of business
shall be filled within 180 days from the date of getting CERTIFICATE OF
INCORPORATION.
Penalty for Not
Obtaining Commencement of Business Certificate
Penalty Levied on Company
Company is liable to pay Rs 50000
Penalty Levied on
Directors
Directors are liable to pay Rs 1000 per day and
maximum 1 lacs after expiration of 180 days from the date of registration.
*CONSEQUENCES
IF FORM IS NOT FILED WITHIN TIME-*
• Company cannot start
his business
• Company cannot
borrow money
• Company will be
closed by the Registrar of Companies.
• Department will
remove of name of the company from the Registrar of Companies.
*FORM FILED FOR COMMENCEMENT OF BUSINESS
E-Form INC 20 A is required to be filed for
Commencement of Business.
*Documents required for filing Form INC 20 A:
1. Subscribers proof
of payment for value of shares- Bank Statement and Board Resolution
IN CASE OF NON BANKING FINANCIAL COMPANIES/ FROM
OTHER REGULATORS:
Certificate of
Registration issued by the RBI
Ques.Whether INC-22 is mandatory to file after incorporation while providing declaration in INC-20A?
Ans.As per our opinion, INC-22 (Notice to Registrar for Registered office of the Company) is not mandatory to file after incorporation if Company incorporated under SPICe form(INC-32) and provide all relevant documents of registered office address.
In case, while incorporating a Company under SPICe form (INC-32) and did not provide any proof of registered office address then after the incorporation, Company required to file INC-22 (Notice to Registrar for Registered office of the Company) within thirty days of the date of incorporation.
Conclusion: While providing decalration in INC-20A, there is no need to file INC-22 as per section 12(2) of the Companies Act 2013 if Company already provided relevant documents for the registered office in SPICe (INC-32).
Ques.Whether INC-22 is mandatory to file after incorporation while providing declaration in INC-20A?
Ans.As per our opinion, INC-22 (Notice to Registrar for Registered office of the Company) is not mandatory to file after incorporation if Company incorporated under SPICe form(INC-32) and provide all relevant documents of registered office address.
In case, while incorporating a Company under SPICe form (INC-32) and did not provide any proof of registered office address then after the incorporation, Company required to file INC-22 (Notice to Registrar for Registered office of the Company) within thirty days of the date of incorporation.
Conclusion: While providing decalration in INC-20A, there is no need to file INC-22 as per section 12(2) of the Companies Act 2013 if Company already provided relevant documents for the registered office in SPICe (INC-32).
Fee for filing e-Form 20A :
i. In case of company have share capital
Nominal
Share Capital
Fee applicable
Less than 1,00,000
Rupees
200
1,00,000 to 4,99,999
Rupees 300
5,00,000 to 24,99,999
Rupees
400
25,00,000 to 99,99,999
Rupees 500
1,00,00,000 or more
Rupees 600
ii. In case of company not have share capital
Rupees 200
Additional fee after 180 days from the date of
Incorporation
Period
of delays
Fees
Up to 30 days
2 times of normal fees
More than 30 days and up to 60 days
4 times of normal fees
More than 60 days and up to 90 days
6 times of normal fees
More than 90 days and up to 180 days
10 times of normal fees
More than 180 days
12 times of normal fees
CLICK THE LINK BELOW FOR THE NOTIFICATION
Regards
CS DIVYANSHU SAHNI
DIVYANSHU SAHNI & ASSOCIATES
512B, KIRTI SHIKAR BUILDING,
JANAKPURI DISTRCIT CENTRE, New Delhi-110058
Mob: 9871027426
DELHI| Mumbai| Karnataka| Bangalore
ALL ABOUT THE CERTIFICATE OF COMMENCEMENT OF BUSINESS UNDER THE COMPANIES ACT, 2013
Reviewed by CS DIVYANSHU SAHNI
on
04:21
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Reviewed by CS DIVYANSHU SAHNI
on
04:21
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