A Business Commencement Certificate is a mandatory requirement for private and public limited companies (except those exempted) to begin business operations. As per the Companies Act, businesses must obtain this certificate from the Registrar of Companies (ROC) before commencing commercial activities. This ensures that the company has complied with preliminary legal formalities, making it eligible to operate officially. Our experts at ASCESA, offering the Best Accounting Services in Koramangala, assist in obtaining the certificate smoothly.
A Commencement of Business Certificate confirms that an eligible company has completed the required formalities before starting its business activities. Newly incorporated companies that are required to comply with Section 10A of the Companies Act, 2013 must file Form INC-20A with the Registrar of Companies (ROC) within the prescribed period. The declaration confirms that the subscribers have paid the value of the shares agreed to be taken by them.
Obtaining the Commencement of Business Certificate helps a company maintain proper legal and regulatory compliance. Failure to file the required declaration within the applicable time may result in penalties and restrictions on commencing business or exercising borrowing powers. Therefore, completing the INC-20A filing correctly and on time is an important step for newly incorporated companies.
Obtaining the Commencement of Business Certificate helps a company maintain proper legal and regulatory compliance. Failure to file the required declaration within the applicable time may result in penalties and restrictions on commencing business or exercising borrowing powers. Therefore, completing the INC-20A filing correctly and on time is an important step for newly incorporated companies.
The company must file a Commencement of Business Certificate declaration in Form INC-20A, confirming the deposit of the required capital.
The ROC verifies the details and ensures compliance with applicable laws.
Upon successful verification, the ROC grants the Business Commencement Certificate, allowing the company to commence operations.
