What is a Certificate of Commencement of Business? Full Guide & Details

Introduction

A Certificate of Commencement of Business (COB) is a mandatory compliance requirement for companies incorporated with share capital in India. As per the Companies Act, 2013, companies incorporated after 2nd November 2018 must file a declaration before starting business operations.

The Certificate is obtained after filing Form INC-20A with the Registrar of Companies (ROC), confirming that the subscribers to the Memorandum of Association (MOA) have paid their agreed share capital.

At Auriga Accounting, we provide complete support for COB filing, from documentation to ROC approval, ensuring smooth and compliant business commencement.

What is Commencement of Business Under the Companies Act?

Commencement of Business refers to the legal requirement under which a company must file a declaration confirming that it is ready to begin operations.

This declaration is filed using Form INC-20A within 180 days of incorporation. It confirms:

Receipt of share subscription money
Verification of registered office address
Compliance with the Companies Act, 2013

The form must be verified by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA). Incorrect filing may result in penalties.

Who is Required to File the Commencement of Business Declaration?

All companies with share capital must file this declaration before starting business activities.

This includes:

Private Limited Companies
Public Limited Companies
Section 8 Companies (with share capital)

This requirement applies to all companies incorporated after 2nd November 2018.

Significance of Certificate of Commencement of Business

Operational Readiness

The certificate confirms that the company has fulfilled all statutory requirements and is ready to commence business operations legally.

Legal Compliance & Credibility

It assures investors, regulators, and stakeholders that the company is compliant with the Companies Act, 2013, enhancing trust and transparency.

Due Date for Certificate of Commencement of Business

Companies must file Form INC-20A within 180 days of incorporation.

Failure to meet this deadline may result in:

Penalties
Restriction on business operations
Regulatory action under the Companies Act, 2013

Exemptions from Filing Form INC-20A

The following are exempt:

Companies incorporated before 2nd November 2018
Companies without share capital

Consequences of Non-Compliance

Failure to file COB within the prescribed timeline may lead to:

Restriction on business operations
Penalty of ₹50,000 on the company
Penalty of ₹1,000 per day on directors (up to ₹1,00,000)
Strike-off by ROC in severe cases

Documents Required for Filing Form INC-20A

Proof of share subscription (bank statement)
Registered office address proof
RBI approval (if applicable, e.g., NBFCs)
Board resolution and directors’ declaration

Procedure for Filing Form INC-20A

Login to MCA portal
Download Form INC-20A
Enter CIN and company details
Upload required documents
Sign using DSC of authorized director
Certification by CA/CS/CMA
Submit and pay applicable fees
Receive SRN and ROC approval

Why Choose Auriga Accounting for COB Filing?

Expert Guidance

Experienced professionals ensure accurate and compliant filing.

End-to-End Support

From documentation to ROC submission, we handle everything.

Timely Compliance

Ensures your business avoids penalties and delays.

Transparent Process

Clear communication at every stage of filing.

Complete Compliance Solutions

We also assist with GST, annual filings, and MCA compliance services.

With Auriga Accounting, you can focus on business growth while we manage your compliance needs.

About the Author

Ravi is a legal content specialist who simplifies complex corporate laws into clear, actionable insights. He helps entrepreneurs understand compliance requirements and build legally strong, sustainable businesses.

June 4, 2026