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Commencement of Business Certificate | Logixweb Consultancy
Post-Incorporation Mandate

Commencement of
Business Declaration

Incorporation is the first step; declaration is the permission to operate. We guide you through the mandatory filing within 180 days to ensure your company is legally authorized to start its business activities.

Filing Requirements

MCA Form 20-A Compliance

Every company incorporated after November 2nd, 2018, having a share capital, must meet these requirements before starting operations:

  • 180-Day Deadline: Declaration must be filed within 180 days of incorporation.
  • Subscription Money: Verification that every subscriber has paid the value of shares agreed upon.
  • Bank Statement: Proof of deposit of subscription money in the company's bank account.
  • Registered Office: Verification of the registered office address (Form INC-22).

Operational Risk

Consequences of Delay

Failure to file the Commencement of Business declaration is a serious non-compliance. The MCA can restrict the company from carrying out any business activities, borrowing money, or exercising any powers until the filing is complete.

Statutory Penalties: Delay in filing results in a penalty of ₹50,000 for the company and ₹1,000 per day for directors. In extreme cases, the Registrar may strike off the company name from the register.