Commencement of Business by Company
A Limited Company incorporated on or after 02.11.2018 can commence the business activities only after filing a declaration to the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and filing the verification of registered office Form INC-32 if the company was registered with a temporary address while incorporation.
Things to do:
1. Filing a declaration in Form No.INC-20A:
The company has to file a declaration with the Registrar of Companies that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of such declaration. This declaration has to be filed by the company within a period of 180 days of the date of incorporation of the company in Form No.INC-20A
2. Filing of INC-22 for verification of its registered office
Filing of INC-22 for verification of its registered office if the company was registered with a temporary address while filing SPICe Form INC-32.
Filing of Form lNC-22 is not required in case where the company has filed required details for verification of Registered office address as Permanent Address maintains its registered office at the given correspondence address.
Process to be completed before starting Business
- Open Bank account in the name of the Company
- All the subscribers to MOA to bring value of the shares agreed to be taken by him.
- File a Declaration Form No.INC-20A with ROC
- Ensure the Filing of Registered office details with ROC.
PENALTY FOR NON-COMPLIANCE
If a company makes any default in complying with the above requirements, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
CLOSURE OF COMPANY BY ROC
If the company has not filed the declaration within a period of 180 days of the date of incorporation of the company, the Registrar may initiate action for the removal of the name of the company from the register of companies on the reasonable belief that the company is not carrying on any business or operations.