Commencement Stage

Under the Companies Act 2013, the date of incorporation of a company cannot be the date of commencement of business (COB). From the point of commencement of Business, companies may be divided into 2 categories:

1. Public and Private Companies not having Share Capital

A public company or a private limited company not having share capital is not required to comply with any other formalities and may commence its business activities immediately after obtaining the certificate of incorporation from the concerned Registrar of Companies.

2. Public and Private Companies having Share Capital

As per section 11 of Companies Act, 2013, now all newly incorporated Public and Private Companies having Share Capital would be required to obtain a certificate of commencement of business from concerned Registrar of Companies before commencing the business or exercise of borrowing powers.

For statutory provisions related to commencement of Business one can refer to the following sources:

• Section 11 of Companies Act, 2013
• Rule 24 of Companies (Incorporation) Rules, 2014