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Certificate of commencement of Business

Commencement of Business Certificate

As per Companies (Amendment) Ordinance 2018, obtaining Certificate of Commencement of Business is mandatory for every Company within 180 days of incorporation. A director has to declare that every subscriber to the memorandum has paid the value of shares agreed to be taken by him/her on the date of making such declaration.



Levied on Company: A Penalty of Rs. 50,000/-

Levied on the all officers in default : A penalty of Rs. 1,000/- per day of default up to Rs. 1 Lakh


Company Strike Off

After 180 days from incorporation, the Registrar may remove the name of the company from the register of companies if the Registrar has enough reasons to believe that the company is not carrying out any operations.


Fee for obtaining Commencement of Business Certificate

Nominal Share Capital

Fees applicable

No Share Capital

Rs. 200

Less than 1,00,000

Rs. 200

From 1,00,000 to 4,99,999

Rs. 300

From 5,00,000 to 24,99,999

Rs. 400

From 25,00,000 to 99,99,999

Rs. 500

1 Crore or more

Rs. 600

Form to be submitted

Form INC-20A (Declaration for commencement of business) is to be filed with the Registrar of Companies and it shall be processed in a Straight Through Process (STP).


  1. Subscribers Proof of payment for value of shares

  2. Certificate of registration issued by RBI (only in case of NBFCs)

  3. Certificate of Registration issued by other regulatory bodies (only in case the affairs are regulated by those bodies)

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