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On formation of a company can I immediately commence the business (COB)?
Within 6 months of formation & before commencement of business, every Company is required to undertake & complete compliances relating to commencement of business. COB compliances are about establishment of registered office for the company & opening, activation of Banking Account & deposit of subscription money by the promoters in the said account & allotment of shares by the company. All these compliances involve various corporate actions. Promoters needs to provide affidavit of all compliances & hence there emerges a needs to take professional support for COB activities. The Company needs to complete this activity within the prescribed time period and non-compliance might lead to serious consequence like striking off name of the Company by the ROC. The companies are also under restriction to complete COB before any borrowing.
To ensure proper & perfect COB compliances to start the business, connect to our Biz Smart Executive