Commencement of Business by Company

A company incorporated on or after 02.11.2018 and having a share capital can commence any business or exercise any borrowing powers only after complying the following requirements:

1. Filing a declaration with the Registrar of Companies  - (Form 20-A)

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

AND

2. Verification of registered office if the company (Form INC-22)

If the company was registered with a temporary address while filing SPICe Form INC-32, the details of permanent registered office has to be filed filing of INC-22 for verification of its registered office in Form INC 22 with in 30 days of Company registration.

Consequences of Non Filing of Form 20-A and INC22

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.

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.