The Companies (Amendment) Ordinance 2018 has reintroduced the concept of Certificate of Commencement of Business. Under the new Ordinance, no company will be entitled to commence its operations except by filing a declaration within 180 days of its incorporation stating that the subscribers to the Memorandum of the company has paid the value of shares so agreed by them, and files a verification of its registered office address with the Registrar of Companies (ROC) within 30 days of its incorporation. Non-compliance with this provision will result in the removal of the company’s name from the Registrar of Companies.

By on 29-01-2019

STEPS TO OBTAIN CERTIFICATE OF COMMENCEMENT

• First, file e-Form 20 (a declaration).
• Attach the statement in the prospectus of your company ( a legal document which provides all the securities you offer to the public upon the purchase of your product in written).
• File it with the registrar after which a verification will take place.
• After the successful verification, you are issued with the Certificate of Commencement of Business.

While registering the above documents you will need some other documents too;

• Identity and Address Proof.
• DSC 
• Certificate of Registration (which is issued by RBI in the case of non-banking financial companies only).
• A consent letter from all the Directors (Director Declaration as well as board resolution).
• All these documents are submitted along with prescribed fees.

The application for the Certificate of Commencement of Business is generally applied within one hundred and eighty days of incorporation of the company.