Commencement of operation

Co Act 2013 245 views 1 replies

Dear 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

Replies (1)

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.

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register