Declaration for Commencement of Business

Under the Companies Act, a company is prohibited from commencing business operations or exercising borrowing powers until specific conditions are satisfied.
1. A crucial requirement is the filing of the Declaration of Commencement of Business (Form INC-20A) with the Registrar of Companies (ROC).
2. This declaration, which must be submitted within 180 days of incorporation, certifies that every subscriber to the company’s Memorandum of Association (MOA) has remitted the agreed-upon value of their shares.
3. The contents of Form INC-20A require verification by a practicing Company Secretary (CS), Chartered Accountant (CA), or Cost and Management Accountant (CMA).
4. These stipulations collectively aim to ensure that companies are properly constituted and possess the requisite financial backing to conduct business activities.