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Certificate of Commencement of Business (COB) – Legal Compliance with Nd Salva
If your company has been incorporated with share capital, obtaining the Certificate of Commencement of Business (COB) is not optional—it’s a statutory requirement. As per the Companies Act, 2013, every company incorporated after November 2, 2018, must file a declaration in Form 20A within 180 days of incorporation before commencing any business activities or exercising borrowing powers.
At Nd Salva, we provide strategic legal guidance and end-to-end compliance assistance, including Form 20A filing and verification. From incorporation to commencement and beyond, we ensure your business stays legally compliant from day one.
What is the Commencement of Business?
The Commencement of Business is a legal declaration made by the company’s directors confirming that:
The subscribers to the Memorandum of Association (MOA) have paid the full value of their subscribed shares.
The company has a verified registered office address.
This declaration must be submitted to the Registrar of Companies (RoC) using Form 20A, supported by proof of payment for share capital and relevant documentation.
Note: Filing Form 20A requires certification by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CWA). Any misstatements or errors in the form can expose professionals to penalties under the Companies Act.
Who Must File Form 20A?
The obligation to file the Certificate of Commencement of Business applies to:
All companies incorporated after November 2, 2018 with share capital
Private Limited Companies
Public Limited Companies
Section 8 Companies (if they have share capital)
Significance of the COB Certificate
Obtaining the Certificate of Commencement of Business:
Legally authorises your company to begin operations
Confirms subscription compliance with the MOA
Assures investors and stakeholders of the company’s regulatory integrity
Avoids legal penalties and regulatory setbacks
Due Date for Filing Form 20A
Must be filed within 180 days from the date of incorporation
Delayed filings result in financial penalties and operational restrictions
Exemptions from Filing Form 20A
Form 20A is not required for:
Companies incorporated before November 2, 2018
Companies without share capital
Consequences of Non-Compliance
| Consequence | Details |
|---|---|
| Business Prohibition | Company cannot commence operations or raise funds |
| Company Penalty | ₹50,000 for the company |
| Director Penalty | ₹1,000/day per director (up to ₹1,00,000) |
| Strike-Off Risk | The RoC may remove the company from the register for being inactive |
Documents Required for Form 20A Filing
To complete the COB declaration, the following documents are required:
Proof of Share Capital Payment – e.g., company bank statement
Registered Office Verification
Certificate from RBI – For NBFCs or regulated entities (if applicable)
Directors’ Declaration & Board Resolution – Affirming receipt of subscription money
Step-by-Step Procedure to Obtain the COB Certificate
1. Access MCA Portal
Log in to the Ministry of Corporate Affairs (MCA) portal.
2. Download & Fill Form 20A
Access “Company Forms Download” and fill in the necessary details such as Corporate Identification Number (CIN), incorporation date, and other relevant data.
3. Attach Supporting Documents
Upload all required documentation, including:
Proof of capital subscription
Address verification
RBI certificate (if required)
4. Affix DSC
Form 20A must be signed using the Digital Signature Certificate (DSC) of an authorised director.
5. Professional Verification
The form must be verified and digitally signed by a CA, CS, or CWA.
6. Submit & Pay Fees
Submit the form via the MCA portal and pay the applicable filing fee (based on share capital).
7. Acknowledgement & SRN
Once submitted, an SRN (Service Request Number) is generated. On successful verification, an acknowledgement email is sent by the RoC.
Why Choose Nd Salva for Your COB Compliance?
Choosing Nd Salva ensures your company is aligned with all post-incorporation regulatory requirements. Our dedicated legal team offers:
Expert Legal Guidance
We interpret and apply the latest MCA rules and ensure your Form 20A filing is error-free and compliant.
End-to-End Service
From document review and drafting to professional certification and MCA filings, we handle the entire process.
Timely Compliance
We ensure deadlines are met to help your company avoid penalties and maintain active status.
Transparent Process
Our clients are kept informed at every step with clear timelines, document checklists, and compliance updates.
Comprehensive Corporate Advisory
Beyond COB, we offer a full suite of services—annual filings, director KYC, GST registration, FDI compliance, and more.
Get Started with Nd Salva
Ensure a compliant start for your company. Let Nd Salva assist with your Certificate of Commencement of Business filing. Reach out to our corporate legal team today for tailored guidance and dependable service.
