Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Commencement of business private company

459 views

Save Share

Join Us Follow Us Add as Source

DHIRAJ JOHN MATTAM

NIL

73 Points Posted on 31 August 2021

Can a private company commence business after incorporation

Replies (6)

Quick Summary

A private limited company can generally commence business immediately after incorporation, especially if it doesn't have share capital. However, if your company has share capital, you must file the 'Declaration of Commencement of Business' (eForm INC-20A) with the Registrar of Companies within 180 days of incorporation. This declaration is crucial before you can officially begin trading, even if initial capital hasn't been deposited in the bank but has been used for business expenses.

CS Richa Sharma

company secretary

2243 Points Posted on 01 September 2021

Yes, a private limited company not having share capital may commence its business activities immediately after obtaining the certificate of incorporation from the concerned Registrar of Companies.

BUT if a Company having share capital, then a certificate of business commencement has to be obtained within 180 days from the date of incorporation and an eForm INC-20A has to be filed with the concerned ROC (Registrar Of Companies) regarding the same,

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 01 September 2021

Yes...

DHIRAJ JOHN MATTAM

NIL

73 Points Posted on 01 September 2021

In my situation, share holders not introduced capital to bank account but they spended amount for office construction and conducted sales and purchase through bank account. later on they introduced capital.