Section 11 of the Companies Act, 2013
Section 11 of the Companies Act, 2013 – Commencement of Business, etc.
⚠️ Note: Section 11 has been omitted by the Companies (Amendment) Act, 2015, effective from 29 May 2015. That means it is no longer in force.
📜 Text before omission:
Section 11 required companies (having share capital) to file a declaration with the Registrar of Companies (ROC) before commencing any business or exercising borrowing powers.
🧾 Key Requirements of (now omitted) Section 11:
Declaration by a Director:
The company had to file a declaration with the ROC that:
Every subscriber to the memorandum has paid the value of shares agreed to be taken.
The paid-up share capital is as per the requirement of the Act.
Verification of Registered Office:
The company had to file the verification of its registered office with the ROC.
Time Limit:
If the declaration wasn’t filed within 180 days of incorporation, the Registrar could initiate action to remove the company’s name from the register (i.e., strike it off).
🔄 Current Status:
After its omission in 2015, now companies are not required to file such a declaration before starting business.
However, the company must still file the verification of its registered office (as per Section 12).
RELATED Blog
0 comments