Commencement of Business Certificate

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Why we need to file form 20A for Commencement of Business?

A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless: A declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified 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 on the date of making of such declaration.
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What Are the Consequences for not filing Commencement of Business?

If any default is made then the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day but not exceeding an amount of one lakh rupees.

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What is the Due date for filing Commencement of Business?

Every company has to file Form 20A within a period of one hundred and eighty days (180 days) of the date of incorporation of the company.

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    Documents Required For Commencement of Business Certificate

    • Bank Statement with Paid up capital deposit proof
    • Signed Board Resolution
    • Digital Signature of Director
    • Declaration by Promoters

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