How to apply for the commencement of business?

Apply for the commencement of business through the Department of Commerce is the way.

Graduating from college is not the only time to start pursuing a career—you need to make sure you're applying for jobs and starting your career while in college. This blog post will help you determine what you need to do, how best to approach them, and what else you should be considering. You need to visit MCA portal and then download the form and other few formalities will be required for the commencement of business.

Application for commencement of business

Do you want to start a new business? It means you desire to commence a business. But you need to file an application for which you will be provided with the certificate of commencement of business. Always remember that you need to apply for this application within 180 days of incorporation of the business. Earlier people used to face difficulties if the company got incorporated before applying for commencement of business.

The application for the commencement of the business is a declaration that the Director of the company needs to file. Here the Registrar of the company is in charge of whom the application needs to be filed.

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Why must you apply to the commencement of business?

1.This certificate will provide your company the power to exercise borrowing rights.

2.The application also allows you to enjoy the benefits that are offered if you register your company officially. For example, in the case of a private ltd company, this application limits the shareholders' liability to their contribution to the company.

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Documents/steps required for filing application for commencement of business:

1.At the very beginning, you need to file a declaration named e-Form 20.

2.Then the statement needs to be attached with the prospectus of your company. Well, a prospectus is a written statement of all the securities you provide to your customers for purchasing your product or availing your services.

3.Then file the attachment with the prospectus to the Registrar for its detailed verification.

After the successful verification, you will be provided the certificate of commencement of business.

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Registration of the above documents demands some other documents:

• Digital signature certificate, Identity, and address proof.
• Arrange the consent letter of all the directors of your company.
• In the case of Non-banking financial companies, remember to collect the certificate of registration issued by RBI.

File all these documents along with the prescribed fees.

So please share your experiences for the same or any query related to the application for commencement of business. And do not forget to like and share this informational blog.