A private company can commence business only after obtaining its Certificate of Incorporation from the Registrar of Companies. After incorporation, the company must begin business within 180 days (six months) from the date of incorporation. The company must file a declaration confirming that the subscribers to the memorandum have paid the agreed share value and meet other legal requirements within this period. Failure to commence business within this time frame can result in penalties. Key points for commencing business for a private company:
- Obtain Certificate of Incorporation from the Registrar of Companies.
- Commence business within 180 days of incorporation.
- File necessary declarations and comply with regulations regarding share capital payment.
- Open a company bank account.
- Complete other legal registrations such as PAN, TAN, GST, etc.
- Hold the first board meeting and pass a resolution for commencement of business.
No business activities can be legally conducted before the completion of these requirements and obtaining the necessary approvals.
