- Companies Act 2013 provides that in addition to the public Limited company there also required for Private limited Companies also to file the declaration and other documents i.e. in Form INC-21 with the Registrar of Companies (ROC) before commencement of business.
- As per Companies Act for commencement of business by any company having share capital, following documents need be filed with the ROC i.e. as attachment to Form INC-21.
- A declaration in Form No INC 21 duly filled and digitally signed by the directors providing the subscribers have paid the value of shares agreed to be taken by them and the contents of the form shall be verified by the CS in practice or CA or cost Accountant in practice. Practically First Fill the Form INC-21 and take print on Rs. 20 of Stamp Paper and get it notarized and again make it into PDF and attach in form INC-21 as first attachment.
- There also required to attach form INC-10 originally made at the time of company registration.
- If the Registrar has sufficient reasons to believe that no declaration in form INC-21 is filed by the Director within 180 days of incorporation and the Company is not carrying any business or operations then Registrar may initiate action for removal of the name of the company from the ROC.
- If any company who is required to get registration from sectorial regulators such as RBI or SEBI etc. the approval from such regulator shall be required.
- If the company has make default in complying with provision applicable for the commencement of business the company shall be punishable with fine which may extend to 5000 rupees an every officer who is default shall punishable with fine which may extend to 1000 rupees for every day during which default continues.
Since in the Act, there is no provision of having other objects section in the Memorandum, the requirement of approval of shareholders for pursuing business, mentioned in other objects section, has been dispensed with.