26 November 2009
we have incorporated a public limited company in 2008.
but before taking certificate of Commencement of Business we have started business and opened Bank account the last date for taking certificate is July,2009
Plz suggest whether we have to close the Bank account and take certificate of commencement of business or closure of the company. and also suggest implications for not taking certificate of commencement of business.
27 November 2009
You are not required to close the bank account. However, please understand that the activites before obtaining the certificate of commencement of business would be considered pre-operative.
There is a time period of six months of incorporation within which you have to obtain commencement certificate. If you don't do that, the ROC has the powers to strike off the name of your company.
Requirement for Obtaining Certificate of Commencement of Business
A public limited company having share capital can not commence business until it has obtained the certificate to commence business from the ROC. Normally, when a public company is incorporated, it may take sometime before it decide to make a public cooer and issue of prospectus. However, a new company will comply with the required formalities and obtain the COB from ROC as soon as possible after formation because it can not commence any business activities or exercise its borrowing powers without it.
In short, there is no time limit for obtaining COB from ROC.