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Certificate of Commencement of Business

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Form INC 20A filing with EAdvisors.

Get hassle free and fast filing of certificate of commencement of business with EAdvisors company registration expertise

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Drafting of Application

Drafting of INC 20A form as per requirements of Companies Act 2013.

Filing of INC 20A

Filing of draft INC 20A with ROC.

INTRODUCTION

The compliance of a new company is by far one of the most fulfilling step in getting started towards being the owner of a Private Limited Co. and it goes without saying how much of relevance it must hold in getting your company established and started.The company being a separate legal entity separate from its directors, which ones get incorporated need to file other forms or adhere to other legal parameters to work successfully under the ROC i.e. The Registrar of Companies.When Company gets incorporated then, there are some initial legal formalities which is must to run a company. Incorporation was the first and the foremost important step in the company registration process. After the first step of incorporation, appears the second task that is the commencement of business.Commencement of business is mandatory compliance to be followed by every incorporated company to start its business operations, may it be a Private Limited Company or a Public Limited. The mandatory compliance has to be filed with ROC in Form 20A.Form INC 20A is a declaration that is to be filed by the directors of the company. As per Rule 23A, Form INC -20A must be verified by any of the professionals (Chartered Accountant, Company Secretary or Cost Accountant in practice).In the company compliance checklist, after incorporation comes the commencement of business.

TIMEFRAME

The time frame within which Form 20A i.e. the declaration filed with ROC for commencement of business shall be filed is within 180 days from the date of incorporation of the company.

APPLICABLE PROVISION

As per Section 10 (A) of the Companies Act, 2013A company having a share capital shall not commence any business or exercise any borrowing powers unless-

  1. a declaration is filed by a director in such format and verifies in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid-up share capital of the company is not less than one lakh rupees in case of private company on the date of making of this declaration; and
  2. the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.

NON-COMPLIANCE

  1. If any default is made in complying with the requirements of this section, the company shall be liable to a penalty which may extend to Rs. 5000/- and every officer who is in default shall be punishable with fine which may extend to 1000 rupees for every day during which the defaulters continue.
  2. Where no declaration has been filed with the Registrar under clause (a) of subsection (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provision of sub section (2), initiate action for the removal of the name of the company from the registrar of companies under Chapter XVIII.
By reading the legal provision, you will have clarity of how important it is to file the declaration of the commencement of business.

FEE STRUCTURE

  • Fee for filing E-Forms or documents in case of company having share capital
 
Nominal Share CapitalFee applicable
Less than 1,00,000Rs. 200
1,00,000 to 4,99,999Rs. 300
5,00,000 to 24,99,999Rs. 400
25,00,000 to 99,99,999Rs. 500
1,00,00,000 or moreRs. 600
  • Fee for filing e-Forms or documents in case of company have having share capital
 
Fee applicable
Rs. 200

ADDITIONAL FEE RULES

Period of delaysAll forms
Up to 30 days2 times of normal fees
More than 30 days and up to 60 days4 times of normal fees
More than 60 days and up to 90 days6 times of normal fees
More than 90 days and up to 180 days10 times of normal fees
More than 180 days12 times of normal fees
This declaration form of commencement of business i.e. Form 20A is a straight-through processing form that doesn’t involve manual intervention. It is to be uploaded on the MCA portal which is the main website where company registration forms are filed. The eForm INC 20A shall be filed by a professional appointed by you may it be Chartered Accountant or Company Secretary.

WHY EADVISORS

  • Assuring quick delivery to our Clients.
  • In a short span of 2 days, you will have your Certificate of Commencement of Business ready with you.
  • Full-time support by our EAdvisors experts
  • Provides with quality work in order to secure your quality time.

How we work

Day 1

The first day is when a client sends documents. The day when we receive the client’s documents that are required for filing form of certificate of commencement of business.

Day 2-3

We draft and file Form INC-20A (certificate of commencement of business) with ROC. This form is process and approved ROC on straight forward process.

Quality Efficient Services

We at EAdvisors are here with our professional services and experts to serve you. We have successfully satisfied our clients with their requirements since a long time and will continue it all time. EAdvisors has 99 % of customer retention ratio.

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To provide constant support to our customers, we are available on WhatsApp as well as on Email. For consulting us directly you may call or WhatsApp us at: +91 991 0000 833 To resolve your complicated query, contact us through Email Id :info@eadvisors.in

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Dedicated Professional guidance

Professional experts of company registration are here at your service to assist you in incorporating companies. For making it hassle free procedure we will be assisting you a professional who will be there throughout your company registration. Your work is our duty and in the hands of our experts.

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Transparency

Our work is to provide with best of services and that too with transparency. We aim to make clients that goes long with us and stay satisfied with our variety of services. No hidden charges exist and everything will be informed to you well in advance.

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Timely Completion

With guaranteed 10-12 days registration, we provide our clients with issuance of Certificate by ROC. Considering one day when documents will be received by us from our clients, then other two days for name approval procedure that is considered by ROC and another day for filing application for Incorporation of Company. On 10th day as we commit, will provide you with certificate of incorporation,

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EAdvisors Form INC 20A

EAdvisors offers you various benefits

No Hidden Fees

EAdvisors is a well-known company, popular for its quality work and therefore no hidden or extra is charged by our clients.

 

Fast and Easy

By just sharing your documents with us on WhatsApp or email, you will get your dream company ready within 10 days only.

 

Order Registration

You will be given a Unique Order No. for you to track the status of company registration process. We offer this unique tracking method to given them a sense satisfaction that their work is our utmost priority. 

Secure Payments

Once the registration process gets started and payment is also made, it is our duty and responsibility to keep your payment secure and in return registering your company.

Use Local Currency

Being a company established in India, we will be accepting the payment in Indian Currency through any of the online mode of transfer.

Intelligent Working method

As the world is also getting advance within time, we have also established online way of accepting documents and creating your company.

Looking for Company Solution?

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Factors To Be ConsideredPrivate Limited CompanyOne Person CompanySole proprietorshipLimited Liability PartnershipPartnership Firm
Ideal ForStartup and growing CompaniesSingle promotersSmall Traders and ManufacturersProfessionalsSmall business & Home Business
Requirements2 Directors/Shareholders1 Director/Shareholder1 Proprietor2 Partners2 Partners
Initial InvestmentNot RequiredNot RequiredNot RequiredNot RequiredNot Required
Tax AdvantagesFew benefitsFew benefitsMinimalMost efficientMinimal
CompliancesHighHighMinimalLowMinimal
Limited Liability ProtectionYesYesNoYesNo
Time Taken5-10 days5-10 days2-5 days10-15 days5-10 days
Frequent Asked Questions

Commencement of Business

A company is a legal entity formed by association of persons. As per Section 2(20) of the Companies Act, 2013 company means a company incorporated under this Act or under any previous company law.

Having main features:

  • Artificial Legal Person
  • Separate Legal entity
  • Limited Liability
  • Perpetual Succession
  • Transferability of Shares

A company can be started with minimum 2 shareholders and maximum allowed shareholders are 200.

Varying upon different factors the cost of incorporation is decided. Depending majorly are authorised share capital, no. of directors, members and Professional fees of consultant.

To form a company, it requires various steps.  Like: -

Step 1: Acquire Digital Signature Certificate (DSC)
Step 2: File Name Approval Application in INC-1
Step 3: Preparation of Documents for Incorporation of Company
Step 4: Apply for Certificate of Incorporation (COI)
Step 5: Issuance of Certificate of Incorporation by ROC

The necessary documents without which company cannot be formed are: -

Identity: PAN Card, Aadhaar Card is compulsory along with Voter ID/Passport/ Driving License

Address Proof of the Director: Any one from latest bank statement, telephone bill or electricity bill

AND

Registered Office Proof of the company:

  1. Latest bank statement/ telephone/ electricity bill.
  2. Notarized rental agreement with NOC from property owner.
  3. Ownership proof if property owned

Not really, but YES for Non-Residents to register a company. While for the verification of the residence living in India, PAN Card, Aadhaar Card and any one from Voter Id/ Passport/ Driving License for Identity proof shall be sufficient.

A Big NO! As the identity proof shall be a Government document. So only the telephone bills issued by BSNL, MTNL are allowed. 

Of course! A person can mark his residential address as a registered office address. But making sure prior approval or NOC is taken for carrying on the business.

NO! Due to the apartments having their private company generating bills and not being Government-Recognized. Hence, only those documents declared by the government shall be considered for verification purpose of the director’s residential address.

This entity is a legal entity enjoying the feature of limited liability. Also having perpetual succession as a major advantage that avoid interrupted existence of the company. Private Limited Company has a privilege of raising funds from Angel Investors or Venture Capitalists. And the benefits continue.

Any entity that is incorporated as a Private Limited Company, Registered Partnership or LLP are eligible for getting registered in Start-Up India. And keeping in mind that entity must not be having annual turnover of more than Rs. 25 Crore.

Initiating with the process of Name approval requiring 2 days (approx), getting the Digital Signature Certificate in another max. 2 days and getting other documentation done, it takes around 10 working days. And surprisingly, as the MCA has provided with single-application form, a company can be created in a day also.

As the advancement of technology has risen, one can simply WhatsApp or Email the document and communicate with the consultant on telephonic media.

By all means, from 1st June, 2007 itself DIN is mandatory for the directors to obtain. Without which efiling cannot be taken place. Hence, it is an Important requirement to be adhered by all the directors.

DSC has been made mandatory by the Ministry of Corporate Affairs during the company registration. Not for all directors but specifically for Authorized Signatories of the company DSC must be obtained.

Private Limited Company provides Angel Investor’s with easy investment opportunities and uncomplicated ways of raising of capital that Limited Liability Partnership lacks in. That’s why, Private Limited Company is preferred over LLP.

To choose a business entity that suits you best, you must read the questions given below to get clarity regarding it.

Are you wiling to share your profits with other people?

IF YES, then you can choose Private Limited Company

IF NO, the Sole Proprietorship would be best for you,

 

IF there is a need for investment from third party (Angel’s Investors)

IF YES, then you can start Private Limited Company.

IF NO, then opt for other business entity.

 

Are you interested in starting a big company where share can be transferred easily to others?

IF YES, then you can start Private Limited Company.

IF NO, then opt for other business entity.

Yes. Why not! But following the pre-requisite mentioned. It states there must be at least one director residing in India for registering a company by NRIs or foreign nationals.

Yes.  With prior to consent of the director, company can use his property as a proof for residential address.

YES, with the prior consent or NOC from the Director’s parents, one can use it as a registered address proof.

For obvious reasons, the presence of a professional including CA, CS, Advocate is a must-have thing to register a company.  For fulfilling the legal compliances and certification purpose it is required to have a professional appointed.

Without giving any second thought, go for Private Limited Company. As it is mostly preferred entity by angel investor to provide investment to.

The annual compliance cost estimated for Private Limited Company is around Rs. 15000 per year.

Private Limited company have a maximum limit of 200. And if this limit is exceeded then that company will not be considered as a Private Limited Company.

Ownership: - In case of proprietor the ownership is with one individual running whole business alone. Whereas in Private Limited Company there are more than one member running the business smoothly with private ownership having legal protection to the shareholders.    

Policy Making: - In proprietorship, the sole person has the right of making decisions of his business. On the other side in Private Limited Company, decision making is done by the Board of Directors who may not be the shareholder of the company.

Transferability of Ownership: - One cannot transfer his ownership in proprietorship and has to be simply close down the business if the owner cannot run the business. But in case of Private Limited Company, ownership can easily be transferred.

As per the provision of the Companies Act, 2013 to incorporate a Private Company, there must be minimum 2 members and maximum of 200 members. Therefore, it’s not possible with one member to form a Private Limited Company.

YES, audit is a compulsory and legal compliance to be done by every company registered under the Companies Act. Along with this an Auditor must be appointed within 30 days of incorporation.

No, According to Section 149(1) of the Companies Act, 2013 requires every company shall have minimum of two directors and maximum of 15 directors.

A director can invest his own fund in the company. But in case, the director has taken a loan for other purpose and using that borrowed money in the company then he will not be allowed to invest it in the company.

In OPC, where the paid-up share capital of an OPC exceeds fifty lakh rupees or its annual turnover exceeds two crore rupees during the relevant previous year it will cease to be an OPC. So, due to restriction of capital in OPC, a Private Limited Company can be preferred having wide scope of capital and being a better option too.

As per Section 149(1) of the Companies Act, 2013 the maximum limit is 15 of directors to be appointed in Private Limited Company.

On the basis of members required: LLP having minimum 2 and maximum not defined. Company having 2 as minimum and 200 as maximum directors.

On the basis of Compliances: LLP has to comply with less compliances and Company has to comply with high and legal compliances.

On the basis of transfer of ownership: In LLP, transfer of ownership will require an agreement to add or remove a partner in LLP.  And in Company one can do so by transferring the shares of the company. Here, transfer of ownership is easy in LLP as compared to Company. 

On the basis of Audit requirement:  In LLP, no audit required unless partner’s capital exceed 25 Lakhs and annual turnover exceeds 40 Lakhs. Whereas in Company, Statutory Audit under Companies Act, 2013 is mandatory.

On the basis of Tax Structure: LLP is not a tax efficient structure compared to a company having certain limitation. Like, where a person wants to start a manufacturing business a company will be beneficial giving lower tax rate of 17.16% in comparison to LLP.

Transfer of ownership: Partnership firm can transfer the ownership by making the agreement for it. In case of Company, one can do so by transferring shares of the company.

Registration: In Partnership deed registration is optional whereas in company, it must be registered with ROC.

Audit requirement: In Partnership firms audit is not necessary but in case of company audit is a mandatory compliance to be done every year.

Compliance: There are less compliance in case of Partnership firm while company has huge list of annual and other compulsory compliances.

Dispute between owners: There are high chances of occurring disputes in partnership firm while in Company dispute between owners will not hamper the company’s ongoing.

On the basis of members requirement:  Public Limited Company having minimum of 7 and maximum not defined. And Private Limited having minimum 2 members and maximum 200.

On the basis of directors’ requirement: Public company shall have minimum of 3 directors and maximum 15 directors. While in Private Co. it shall have minimum 2 directors and maximum 15 directors.

On the basis of transferability of shares: In Case of Public Limited Company shares are freely transferable which means it can be freely traded in open market. Whereas the shares of Private Limited Company are not freely transferable having restrictive clause in the Articles.

On the basis of Compliance: In Public Limited Company, compliances are comparatively huge as compared with private limited. Private Company enjoys less compliances.

On the basis of raising funds: Public Company can raise funds from public by issuing a prospectus. But a private limited company cannot raise funds from public having restriction applied on it.

On the basis of Start-up India Registration: Public Companies are not eligible to get registered under Start-up India scheme whereas Private Company enjoys all the benefits provided under Start-up India.

By visiting MCA portal and conduct company name search to check whether name availability is there or not.  To select a name of the company, you must consider the below given points.

  1. The name of the company against whom trademark is already taken by other.
  2. Not restrictive by any government authority (for instance: Bank, Government, State government, centre government etc)
  3. Name identical to any existing company.
  4. Generic names will not be allowed.

Keeping all the above points in mind, one must have 2-3 unique names decided for the company as it is asked in the name approval application. According to the preference, names can be mention in the application

Regarding the time involved: - After filing of application for the same with MCA, 90 days is usually considered for striking off the company’s name from MCA portal.

Regarding the cost for shutting down: -

  1. Government Fees - Rs.10,000
  2. Documents Auditing Fees – vary
  3. Professional Fees – depending upon on consultant

For selecting a name of the company, there are certain restriction mentioned below. To name a few: -

  • A name against whom a trademark is already registered cannot be taken by other.
  • Not restricted by any government authority.
  • Name identical to an existing company.
  • Generic names not allowed.

YES. In case of active trademark with applicant, application can be made for company registration.

No, A proprietorship firm cannot be converted into Private Limited as there is no prescribed clause mentioned in the Act.

Surely, NOC from trademark holder will be required prior to getting a company name with same trademark.

SPICe+ form is required to be filed for registering a company on MCA Portal. It is an integrated Web form offering 10 services by Central govt Ministries & Departments.

Yes, by following the procedure of conversion as mentioned in the law it is possible. Also, there has to be a provision already stated in company’s articles to convert a firm into a company.

Form AOC-4: every company must file its financial statement in the given form.

Form MGT-7: every company must file its annual return in the given form.

These two forms specifically are to be filed mandatorily and by every financial year by all companies.

As per the provision of the Companies Act, 2013 every company registered under the Companies Act, has to maintain its books of accounts duly audited by a qualified professional. As audit ensure true and fair picture of the company’s financial. Therefore, audit is compulsory to be conducted.

As per the provisions mentioned in Section 366 of the Companies Act, 2013 and Company ( Authorised to Register) Rules, 2014 LLP can be converted into a Private Limited Company.

There is no such restriction for shareholder. Any family member can become shareholder of company.

Yes, Shareholder of a company can also appointed as the director of a company.

A salaried person can register a private limited company.

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