Commencement of business
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Commencement of business

“A company incorporated after commencement of the companies (amendment) ordinance, 2018, i.e 02-11-2018 and having share capital shall not commence any business or exercise any borrowing powers unless-

  • a declaration filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in FORM INC- 20A and verified in such a manner as may be prescribed, with the registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration.

(b) The company has filed with the registrar a verification of its registered office as provided in sub-section (2) of section 12 in FORM INC-22.

 

When to Apply?

Within 180 Days of Incorporation

Who needs to apply?

Companies having share capital which are Incorporated on or after 02/11/2018.

Documents Required

Bank statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA.

Non-Compliance

Company can’t:- Start Business activity and Exercise any borrowing power (section 10A)

Any Default -Penalty to be levied

Company – Rs. 50000

Director –Rs. 10000 Per Day up to Rs. 100000

Forms to be filed

INC 20A & INC 22 (As per Instruction Kit Form INC-22 is Not required to be filed if Registered Address is already mentioned in Company incorporation forms. )

DOCUMENTS / INFORMATION REQUIRED

Subscribers proof of payment for value of shares.

Therefore, As per Above Requirements, Kindly provide us Bank Statement of Company having all credit entries for receipt of subscription money from Subscribers.

If Company is regulated by any sectoral regulator, Information Required:

Name of the regulator

Letter number/registration number

Date of approval/registration

Certificate of Registration issued by the RBI is Required also in case of Non-Banking Financial Companies) /from other regulators