12 August 2013
Dear experts, How long does a company have to start work after receiving commencement certificate. What i mean to ask is is it ok if a company starts its operations after 1 year of receiving commencement certificate. Is there any time limit after incorporation.
The time period is not defined. 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.
12 August 2013
I would like to bring your attention on the following:
By virtue of the Section 433(c), a company may be wound up by the High Court (Tribunal) if it does not commence business within a year from its incorporation or suspends its business activities for a whole year.
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