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Certificate of commencement

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(Querist)
18 October 2012 within what time business shall be commenced after the issue of certificate of commencement
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Ajay Mishra

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Ajay Mishra (Expert)
18 October 2012 Hi

No time period is defined for obtaining Certificate of Commencement of Business (COB).

A public limited company having share capital cannot commence business until it has obtained the certificate to commence business from the Registrar of Companies.
Normally, when a public company is incorporated, it may take sometime before it decides to make a public offer and issue a prospectus. However, a new company will comply with the required formalities
and obtain the commencement of business certificate from the Registrar as soon as possible after formation because it cannot commence any business activities or exercise its borrowing powers without it.
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