Business done without company incorporation

Hi Experts,

My friend and I got a private limited company in the month of may, it was incorporate on May 15, 2014. Without the Incorporation in place and without commencement certificate we started doing business. Meaning, we started giving services at the start of April itself, we got some advance money also.

Following are my questions..

1) I understand now that we should have waited till commencement certificate for us to charge fees to our clients, what are the legal implications now?

2) Can we give the reason stating that, April 1st registration was not open as New Company Act was coming in place, we could not loose our business, as a result we went out and started business.

3) Can our business and money transaction that happened between us and client before incorporation be accouted in clean and legal way ?

 

Regards, Seeking your help ... Sincerely

Replies (1)
there is no needs to clarify this question ....profit and loss before commencement of business is treated as their individual gain and distributed acoordingly in their personal incomes. however if any expenses done for making company alive it shall be reimbursed to promotors after commencement of business..

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