There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.
Format
I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:
- Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
- All the requierment attachment have been completely and legibly attached to this form.
- Every subscriber to the MOA has paid the values of share agreed to be taken by him.
- The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.
Documents that have to be attached-
- COI of the Company
- PAN of the company
- List of directors and shareholders of the company
- Bnak statements of the Directors and shareholders of the company
- ID proofs of the same
- Receipt proof (if any)
Fee structure of the share certificate
| Share capital involved | Fee to be paid |
| Less than 1 lakh | Rupees 200 |
| 1,00,000- 4,99,999 | Rupees 300 |
| 5,00,000- 24,99,999 | Rupees 400 |
| 25,00,000- 99,99,999 | Rupees 500 |
| 1,00,00,000 or more | Rupees 600 |
What if you don’t comply with the Declaration
- Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.
- Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.
- Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.
Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.