Commencement of business
This query is : Resolved
01 June 2012
Dear Sirs,
How to obtain a certificate of commencement of business for a company and by when ?
How to obtain a certificate of commencement of business for a company and by when ?
03 June 2012
Hi
ACTION REQUIRED ON THE PART OF THE COMPANY TO OBTAIN COMMENCEMENT OF BUSINESS CERTIFICATE (REFER SECTION 149)
A public limited company having share capital cannot commence business until it has obtained the certificate to commence business (COB) from the concerned Registrar of Companies.
Normally a new company will comply with the required formalities and obtain the commencement of business certificate (COB) from the Registrar as soon as possible after formation because it cannot commence any business activities or exercise its borrowing powerswithout it.
WHERE A COMPANY NOT ISSUES PROSPECTUS FOR PUBLIC SUBSCRIPTTION
For obtaining a certificate to commence business, the following actions are required to be taken:—
(i) the company shall file with the Registrar a statement in lieu of prospectus (SLP) (signed by every director) electronically at the MCA portal in the form given in Schedule III to Act together with the E-Form 62 and shall pay the prescribed fee by online or offline as per Schedule X of the Companies Act, 1956.
(ii) the directors should pay the value of the shares to the extent money is payable in cash with application/allotment;
(iii) a duly certified declaration shall be filed electronically at the MCA portal in the E-Form 20 and a stamped copy shall be simultaneously filed with the Registrar signed by a director/secretary
or by secretary in practice where there is no secretary, to the effect that the requirements of section 149(2) have been complied with.
(iv) the company shall not allot any share or debenture at least for three days after filing of statement in lieu of prospectus with the Registrar. [Section 70(1)];
(v) the company shall pay the prescribed filing fee by online or offline under Schedule X on SLP and on e-Form 20 to the Registrar of Companies.
The Registrar of Companies shall then issue the requisite certificate of commencement of business.
NOTE: IT WAS DECIDED IN THE CASE OF MALABAR IRON & STEEL WORKS LTD. V REGISTRAR OF COMPANIES (1963) THAT COB CANNOT BE ISSUED IF THE COMPANY HAS NOT COMPLIED WITH THE PROVISIONS OF SECTION 149(1), EVEN THOUGH IT HAS ISSUED A SLP U/S 70.
Regards
ACTION REQUIRED ON THE PART OF THE COMPANY TO OBTAIN COMMENCEMENT OF BUSINESS CERTIFICATE (REFER SECTION 149)
A public limited company having share capital cannot commence business until it has obtained the certificate to commence business (COB) from the concerned Registrar of Companies.
Normally a new company will comply with the required formalities and obtain the commencement of business certificate (COB) from the Registrar as soon as possible after formation because it cannot commence any business activities or exercise its borrowing powerswithout it.
WHERE A COMPANY NOT ISSUES PROSPECTUS FOR PUBLIC SUBSCRIPTTION
For obtaining a certificate to commence business, the following actions are required to be taken:—
(i) the company shall file with the Registrar a statement in lieu of prospectus (SLP) (signed by every director) electronically at the MCA portal in the form given in Schedule III to Act together with the E-Form 62 and shall pay the prescribed fee by online or offline as per Schedule X of the Companies Act, 1956.
(ii) the directors should pay the value of the shares to the extent money is payable in cash with application/allotment;
(iii) a duly certified declaration shall be filed electronically at the MCA portal in the E-Form 20 and a stamped copy shall be simultaneously filed with the Registrar signed by a director/secretary
or by secretary in practice where there is no secretary, to the effect that the requirements of section 149(2) have been complied with.
(iv) the company shall not allot any share or debenture at least for three days after filing of statement in lieu of prospectus with the Registrar. [Section 70(1)];
(v) the company shall pay the prescribed filing fee by online or offline under Schedule X on SLP and on e-Form 20 to the Registrar of Companies.
The Registrar of Companies shall then issue the requisite certificate of commencement of business.
NOTE: IT WAS DECIDED IN THE CASE OF MALABAR IRON & STEEL WORKS LTD. V REGISTRAR OF COMPANIES (1963) THAT COB CANNOT BE ISSUED IF THE COMPANY HAS NOT COMPLIED WITH THE PROVISIONS OF SECTION 149(1), EVEN THOUGH IT HAS ISSUED A SLP U/S 70.
Regards
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04 June 2012
dear sir,
most probably e-form 62 is required to be filed for statement in lieu of prospectus as per schedule IV and not as per schedule III. hence for the aforesaid case only form 20 will suffice.
most probably e-form 62 is required to be filed for statement in lieu of prospectus as per schedule IV and not as per schedule III. hence for the aforesaid case only form 20 will suffice.
07 June 2012
Hi
Form-20 will be sufficient. Form 62 is not required in this case.
Regards
Form-20 will be sufficient. Form 62 is not required in this case.
Regards
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