Commencement of business

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Kanika (Querist)
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20 September 2013 If a company does not obtain certificate of commencement of business within 1 month from the date of its incorporation and applies to obtain certificate of commencement of business after 8 months from the date of its incorporation , does this case attract any kind of penalty or issues from ROC ?

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013 No, there is no consequences. But the company should not commenced there business before getting COB. If it started its business bofore getting COB then it will covered under section (2A) and (6) of section 149.

If any public company commences business or exercises borrowing powers without obtaining the commencement certificate, every person who is responsible for the contravention shall, inter alia, be punishable with fine of Rs. 5,000 for every day during which the contravention continues, pursuant to sub-sections (2A) and (6) of section 149 of the Companies Act, 1956.

Kanika

Kanika (Querist)
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20 September 2013 okay
thank you sir .

Further to this query if a company applies to obtain Certificate of commencement of business after 1 year from the date of its incorporation , in this case what are the case laws attracted and what will be the late fee charges of filing e-form 20 ?

Ajay Mishra

Ajay Mishra (Expert)
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20 September 2013 You will pay additional fee for filing Form-20.

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