Commencement of Business in India
Starting your company’s operations legally becomes simple and compliant with Commencement of Business. It is a mandatory requirement for certain companies before beginning any business activity.
Commencement of Business is governed under the Companies Act, 2013 and requires filing a declaration with the Ministry of Corporate Affairs (MCA).
Whether you have incorporated a new company or are preparing to start operations, obtaining commencement approval ensures legal authorization to begin business.
What is Commencement of Business?
Commencement of Business is the process of obtaining legal permission for a newly incorporated company to start its business operations.
It involves filing a declaration confirming that shareholders have paid the subscription amount.
Key Features:
Mandatory for newly incorporated companies
Filing of declaration with MCA
Confirms receipt of share capital
Required before starting operations
Ensures legal compliance
Benefits of Commencement of Business
Completing commencement of business provides multiple advantages.
Legal Authorization
Start business activities legally.
Compliance Fulfillment
Avoid penalties and legal issues.
Business Activation
Enable company operations.
Banking & Transactions
Smooth financial operations.
Credibility
Build trust with stakeholders.
Regulatory Compliance
Meet MCA requirements.
Required Documents
To apply for commencement of business in India, you need the following:
📌 Company Documents:
- Certificate of Incorporation
- PAN Card of company
📌 Additional Requirements:
- Proof of share capital received
- Bank statement of company
- Registered office verification
Registration Process
Commencement of Business process is completely online and follows these steps:
Step 1: Open Bank Account
Open company bank account.
Step 2: Deposit Share Capital
Receive subscription amount from shareholders.
Step 3: Prepare Declaration
Director confirms receipt of capital.
Step 4: File Form INC-20A
Submit declaration with MCA.
Step 5: MCA Verification
Authority reviews application.
Step 6: Approval for Commencement
Company can legally start operations.
Pricing
The cost of commencement of business depends on various factors such as government fees, professional charges, and document requirements.
- Government filing fees
- Documentation cost
- Professional service charges
💰 Note: Cost is minimal and mandatory for compliance.
👉 Contact us today for a transparent quote with no hidden charges.
Frequently Asked Questions
Yes, for certain companies like Private Limited.
It is the declaration form for commencement.
Usually 2–5 working days.
Penalties may apply and company may be struck off.
No, it is legally required.
Yes, to receive share capital.
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