How to get certificate of business commencement

Co Act 2013 1851 views 5 replies

Sunny Srivastav

Others

27 Points Joined March 2013

Dear Expert,

I am facing some issue, Would like to informed you that, We have registered a Limited company in the month of June 2014. and as per my knowladge the RoC has not issuing Certificate of Business Commencement. But my problem is that, Bank is asked COB ( Certificate of Business Commencement ) for Opening Bank Account.

I have called up to Roc- Kanpur, They said now as per the company act 2013. Roc/MCA has stop issuing certificate of Business Commancement.

We have already filled INC-21 as per the prescribe duration and the same is approved from MCA.

Now to suggest that, COB is not issuing from MCA. They only get approval online after filling INC-21.

Some Body here who can help out my problem.

Regards,

Replies (5)

Mayur M. Goswami

CA Final

75 Points Joined April 2011

Certificate of Incorporation is issued by MCA online after approval of formation forms.

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Pl refer Sec.11 of CA 2013. It clearly provides that a company will not commence any business or exercise any borrowing powers unless the company files with ROC a declaration about paid-up share capital and verification of registered office. There is no provision in the new Act for getting certificate of commencement of business.

Opening of Bank account does not mean that the company has commenced its business. Since your INC.21 has been approved, you can commence business.

Sunny Srivastav

Others

27 Points Joined March 2013

Dear Agarwal,

Thanks for your answering, But i did not understand what can do ? as i all ready informed that, We have filed INC-21 and it is approved by MCA.

Now my question is that " How to get business commencement certificate". Our CA said the MCA or RoC has stop issuing certificate. as per company act 2013 now they have provide only online approval.

But banks and others sectors is always asked for COB.

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

You have to just update the Bank about the new law. You can give them a letter quoting extract of Section 11 of CA 2013 and a copy of form INC.21 filed by you. That's all.

Wehtam

DEsig

22 Points Joined February 2010

The Companies (Amendment) Ordinance, 2018, re-introduces the need for Certificate of Commencement of Business vide Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014. Any company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 (effective date is 2-Nov-2018) and having a share capital shall not commence any business or exercise any borrowing powers, unless they file a Declaration at the time of commencement of business in Form No. lNC-20A.