Provision in the Indian Companies Act 2013 regarding Commencement of business, etc is as under.
(1) A company incorporated after the commencement of the Companies
(Amendment) Act, 2019 and having a share capital shall not commence
any business or exercise any borrowing powers unless--
(a) a declaration is filed by a director within a period of one
hundred and eighty days of the date of incorporation of the company
in such form and verified in such manner as may be prescribed, with
the Registrar that every subscriber to the memorandum has paid the
value of the shares agreed to be taken by him on the date of making
of such declaration; and
(b) the company has filed with the Registrar a verification of its
registered office as provided in sub-section (2) of section 12.
(2) If any default is made in complying with the requirements of
this section, the company shall be liable to a penalty of fifty
thousand rupees and every officer who is in default shall be liable
to a penalty of one thousand rupees for each day during which such
default continues but not exceeding an amount of one lakh rupees.
(3) 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 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 under
Chapter XVIII.
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1. Ins. by Act 22 of 2019, s. 3 (w.e.f. 2-11-2018)..