prakash (Company Secretary) (1352 Points)
19 December 2014Dear All,
Can companies commence it business soon after its filing form 21 but before approval of the same?
i opine that company can commence it business soon after filing of declaration, not to wait for approval of form as per section 11 of the Companies Act, 2013
P C Agrawal
(Registered independent director Past Ch)
(8229 Points)
Replied 19 December 2014
Yes, Section 11(1) clearly provides for 'filing' of declaration and not its 'approval'.
But a problem may arise in a hypothetical case where the ROC asks for some additional information and company fails to provide the same to the satisfaction of ROC within the prescribed time. In such a case the form can be rejected and treated as not filed. Hence one prefers to wait for its approval. Of course, chance of such case is remote.
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