There are few simple steps for filing of Commencement of Business Certificate:
Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital is required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers. Since the Companies (Amendment) Ordinance 2018 was introduced in November 2nd 2018, any company incorporated after 2nd November 2018 would be required to obtain Commencement of Business Certificate.
It is a Declaration to be issued by the directors within 180 days of incorporation of company stating that the subscribers to the Memorandum of the company has paid the value of shares so agreed by them. This declaration need to be filed along with Bank Statement (proof of subscription money received by the company) in form 20A with the Registrar of Companies.
Every company having share capital incorporated after 2nd November 2018
Even the Section 8 Companies having share capital need to file form 20A
within 180 days of incorporation of the company.
A company cannot start its business and also cannot Borrow Money.
Any company that does not obtain commencement of business certificate within 180 days of incorporation will be liable for payment of a penalty of Rs.50,000.
Each of the Directors who have defaulted would be liable for payment of a penalty of Rs.1000 per day of default up to a maximum of Rs.1 lakh
Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar of Companies has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2) initiate action for the removal of the name of the company from the register of companies (i.e. Company Strike-Off).
IEC Stands for Importer Exporter code which is a 10 digit number issued by Director General of Foreign Trade, Department of Commerce, Government of India. It is a registration required for traders importing or exporting goods and services to or from India.
Import Export Code number is a proof of a firm as an Exporter/Importer in India. IE code can be submitted with government authorities as a proof of trade to obtain various benefits on their exports / imports from DGFT, customs etc.