Starting a business is one of the most significant prerequisites for a private limited company, so it needs to be done on time. Fines will be applied on you if a private limited company commence business after the deadline, which is one hundred and eighty days from the date of entity incorporation. Completing tasks on time is the only way to protect yourself from these kinds of fines.
If you are aware of them, you should do them on your own; alternatively, hire a professional to handle all these business-related responsibilities on time and avoid fines and penalties. Unnecessary fines as well as penalties hampers the business growth of your company, therefore private limited company commence business and do all the other compliances on time so that such penalties will not levy on your business and your business can grow in the market.
Understanding Private Limited Company
In order to understand private limited companies we have to go deep down under the companies law and understand the concept of the private companies. These are those entities which require minimum paid up capital of Rs. 1 lakhs. At least two directors are necessary to be there in the private limited companies. Without minimum directors one cannot register this company in India. Hence make sure you are having two directors for your private limited company registration. People prefer to register this company because of the various benefits like reliability, credibility, customer trust, etc. if you are thinking about registering your private limited company in India feel free to contact us in case of any doubt.
What do you Mean by Commencement of Business?
The start of a business is the day that an organization or company introduces itself to the public in order to gain clients and move forward with its operations. Without acquiring the entity’s certificate of registration which can be possible only after submitting an application for incorporation it is not feasible to start a business. Similarly private limited company commence business after they obtain their certificate of registration from the Registrar of Companies, not before that. Hence we can say that the very first step towards the commencement of business is registration of the entity because only after that you can get the certificate of incorporation for your private limited company.
When Can a Private Limited Company Start its Business?
Starting a business or commencement of the business can be used interchangeably, because the day you commence the business, it is the official day from which you are starting the business. Once your company is registered as a private limited company and you got the certificate of incorporation for your entity, then within 180 days (One hundred eighty days) you need to commence the business. In case you missed these days and crossed the time limit, remember that penalty will be levied on you. Hence it is necessary for private limited company commence business within the prescribed time.
Commencement of the business within the stipulated time is also a compliance of the private limited company. Registrar of companies is very strict about the compliances of the company. Therefore you need to be extra conscious about the same and commerce your business on time to save yourself from fines and penalties. Hiring an expert can help you out with all these hectic things. They will do all your company’s compliances on time and secure you against the penalties.
How can a Private Limited Companies Commence Business?
By following the a private limited company commence business as per the company law:
- In order to do commencement of the business the very beginning point is to register your entity
- Once the process of registration is complete make sure that you have obtained the certificate of registration of the private limited company from the competent authorities
- Now you need to open a bank account on the name of the company and deposit the money equally from the accounts of the directors of the company as per their share capital
- Now obtain the other casual and non casual registration for your company like PAN, TAN, GST Registration etc
- Obtain the seal of the company for the official works of your entity
- Hold first board of meeting and pass a board of resolution for the commencement of the business
- Now get the certificate of commencement of the business and file all the required forms for the private limited company business commencement
- Once all the formalities regarding the commencement are done, now the private limited company commence business in the market among the customers
Conclusion
For novice business owners, registering a private limited company is one of their top objectives. Occasionally, new firms are registered in India; these are primarily Private Limited firms. Few things you need to understand before you opt for the registration of such kinds of entities. It’s not easy to run and maintain the private limited companies. They have their complaints which need to be done on time. One of the most important things about these companies is the commencement of the business. Can a owner of the private limited company commence business before its registration, if yes what is the right time and if no then when can a owner commence their business. These are the few questions which we face every now and then from the side of our clients, hence we came up with this present blog about the private limited company commence business.
