What is meant by certificate of commencement of business?

Certificate of Commencement of Business (COB) refers to a document required under the company act before a business can initiate its operations. This is an important update: As per the Companies Amendment Act, 2015, there is no longer requirement of Certificate of Commencement of Business.

Is certificate of commencement of business required for private limited company?

Under the erstwhile Companies Act, 1956, a private company could start its business immediately upon receiving a certificate of incorporation. Private companies do not require to obtain a certificate of commencement of business from concerned Registrar of Companies under section 149 of Companies Act, 1956.

What does Certificate of commencement of business mean?

Certificate of Commencement of Business (COB) refers to a document required under the company act before a business can initiate its operations . This is an important update: As per the Companies Amendment Act, 2015, there is no longer requirement of Certificate of Commencement of Business.

What is the certificate for the commencement of business?

Commencement of Business Certificate is the declaration that the Director of the Company needs to file with Registrar of Companies. Moreover this declaration is filed in Form INC-20A within 180 days of the incorporation of the Company. Basically, this is a declaration filed before commencing the business and exercising borrowing powers by the Company.

What is a commencement certificate?

A commencement certificate is a legal document that is essential to initiate the construction of a housing project. Whereas, an occupancy certificate is a document that makes the owner eligible to enjoy the civic amenities such as road, water, sanitation, and electricity.

What is an incorporation certificate?

In English and Commonwealth legal systems, a certificate of incorporation is usually a simple certificate issued by the relevant government registry as confirmation of the due incorporation and valid existence of the company. In other common law legal systems, the certificate of incorporation has less legal significance.