{"id":47906,"date":"2025-02-13T15:15:40","date_gmt":"2025-02-13T09:45:40","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=47906"},"modified":"2025-02-13T15:17:33","modified_gmt":"2025-02-13T09:47:33","slug":"certificate-of-business-commencement","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/certificate-of-business-commencement\/","title":{"rendered":"Commencement of Business Certificate (COB)"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Running a business is not for the faint of heart. To ensure a smooth start for your business, it is crucial that you understand all the documents that the government requires from your company.<\/p>\n\n\n\n<p>The Commencement of Business Certificate is one such essential document allowing companies to operate their businesses legally.<\/p>\n\n\n\n<p>This article explains the application process and fees required to obtain a certificate of Commencement of Business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Commencement of Business Certificate?<\/strong><\/h2>\n\n\n\n<p>A Commencement of Business Certificate (COB) is a mandatory declaration that confirms that a company is legally permitted to commence business operations. It highlights your company&#8217;s adherence to legal regulations and allows you to start business activities and secure funds.<\/p>\n\n\n\n<p>The declaration must be made within 180 days of incorporation of the company to avoid penalties and legal consequences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Form INC 20A<\/strong><\/h3>\n\n\n\n<p>Form INC 20A is the declaration form that must be filed to obtain a certificate to commence business. It ensures that your company meets all statutory requirements, which is essential to maintaining its legal status and avoiding penalties.&nbsp;<\/p>\n\n\n\n<p>Timely and accurate filing of Form INC 20A ensures a smooth start for your company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility for Commencement of Business Certificate<\/strong><\/h2>\n\n\n\n<p>According to the Companies Act of 2013, it is mandatory for the following companies to obtain a commencement certificate of company before commencing business operations:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Public and private companies incorporated after November 2nd, 2018<\/li>\n\n\n\n<li>All companies operating with a share capital framework<\/li>\n<\/ol>\n\n\n\n<p>Companies that do not meet the criteria above are not required to file Form 20A.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Documents Required for a Commencement of Business Certificate<\/strong><\/h2>\n\n\n\n<p>The following documents are required to obtain a certificate of business commencement:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Digital Signature Certificate (DSC)<\/li>\n\n\n\n<li>Registered Company&#8217;s Proof of Address<\/li>\n\n\n\n<li>Company Bank Statement as evidence of payments done by shareholders or subscribers<\/li>\n\n\n\n<li>(If applicable) Registration Certificate issued by RBI<\/li>\n\n\n\n<li>Consent Letter or Confirmation Letter from all directors of the company<\/li>\n\n\n\n<li>Details of the board resolution of the company<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Application Process for Commencement of Business Certificate<\/strong><\/h2>\n\n\n\n<p>You must fill out Form INC 20A in order to apply for a certificate of commencement of business for a private limited company.<\/p>\n\n\n\n<p>The application process is as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Log in to the official Ministry of Corporate Affairs (MCA) website.<\/li>\n\n\n\n<li>Go to &#8220;MCA services&#8221; and choose the &#8220;E-filing&#8221; option, then select &#8220;Company Forms Download&#8221;.<\/li>\n\n\n\n<li>Find the form titled Form No. INC-20A.<\/li>\n\n\n\n<li>Enter the required information regarding your company. Optionally, select CIN from the drop-down menu and complete the form.<\/li>\n\n\n\n<li>Submit the form. After submission, a serial request number (SRN) will be generated, which can used for correspondence with the MCA.<\/li>\n\n\n\n<li>Attach the Digital Signature Certificate form on the MCA website.<\/li>\n\n\n\n<li>Pay the required fees through the portal.<\/li>\n<\/ol>\n\n\n\n<p>Once verification is complete, you will receive an acknowledgment email.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Fee Structure for Companies with Nominal Share Capital<\/strong><\/h2>\n\n\n\n<p>The fee payable by your company will be based on its nominal share capital:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Nominal share capital of the company<\/strong><\/td><td><strong>Fee<\/strong><\/td><\/tr><tr><td>Less than 1,00,000<\/td><td>\u20b9200<\/td><\/tr><tr><td>1,00,000 to 4,99,999<\/td><td>\u20b9300<\/td><\/tr><tr><td>5,00,000 to 24,99,999<\/td><td>\u20b9400<\/td><\/tr><tr><td>25,00,000 to 99,99,999<\/td><td>\u20b9500<\/td><\/tr><tr><td>1,00,00,000 or more<\/td><td>\u20b9600<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Additional fees will be required if the form is not filed within 180 days. The additional fees will depend on the duration of the delay:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Delay period<\/strong><\/td><td><strong>Additional fee<\/strong><\/td><\/tr><tr><td>Up to 30 days<\/td><td>2 times of regular fees<\/td><\/tr><tr><td>More than 30 days but less than 60 days<\/td><td>4 times of regular fees<\/td><\/tr><tr><td>More than 60 days but less than 90 days<\/td><td>6 times of regular fees<\/td><\/tr><tr><td>More than 90 days but less than 180 days<\/td><td>10 times of regular fees<\/td><\/tr><tr><td>More than 180 days<\/td><td>12 times of regular fees<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Consequences for Non-compliance in Filing Form INC 20A<\/strong><\/h2>\n\n\n\n<p>It is essential for your company to submit the required form within the stipulated time, as non-compliance may have severe consequences for your business.<\/p>\n\n\n\n<p>These consequences can include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Penalties imposed on the company: <\/strong>If your company fails to acquire a Commencement of Business Certificate within 180 days of incorporation, the company can face a penalty of \u20b950,000.<\/li>\n\n\n\n<li><strong>Penalty imposed on the directors: <\/strong>Directors of the defaulting company can face individual penalties of \u20b91,000 per day of default, up to a maximum penalty of \u20b91 Lakh.<\/li>\n\n\n\n<li><strong>Striking off of the company: <\/strong>Your company&#8217;s name may be removed from the Registrar of Companies if there are reasonable grounds to believe that the company is not engaged in business operations even after 180 days from the date of incorporation.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Wrapping up<\/strong><\/h2>\n\n\n\n<p>Obtaining a Commencement of Business Certificate is essential for ensuring a smooth start for your company. It not only helps you avoid various penalties but also helps build trust with shareholders.<\/p>\n\n\n\n<p>Start building a successful business today using Tata Capital&#8217;s <a href=\"https:\/\/tata-blog.osian.dev\/business-loan\/msme-loan-sme-loan.html\">MSME loans<\/a> with competitive interest rates. Use Tata Capital&#8217;s easy-to-use <a href=\"https:\/\/tata-blog.osian.dev\/business-loan\/gst-calculator.html\">GST calculator<\/a> to calculate the amount you must pay on your business loan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a business is not for the faint of heart. To ensure a smooth start for your business, it is crucial that you understand all the documents that the government requires from your company. The Commencement of Business Certificate is one such essential document allowing companies to operate their businesses legally. This article explains the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":47907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-47906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Certificate of Business Commencement (COB) | Tata Capital<\/title>\n<meta name=\"description\" content=\"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Certificate of Business Commencement (COB) | Tata Capital\" \/>\n<meta property=\"og:description\" content=\"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-13T09:45:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-13T09:47:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2025\/02\/image4-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1378\" \/>\n\t<meta property=\"og:image:height\" content=\"1034\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/\",\"name\":\"Certificate of Business Commencement (COB) | Tata Capital\",\"isPartOf\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\"},\"datePublished\":\"2025-02-13T09:45:40+00:00\",\"dateModified\":\"2025-02-13T09:47:33+00:00\",\"author\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\"},\"description\":\"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tatacapital.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Commencement of Business Certificate (COB)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#website\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/\",\"name\":\"TATA Capital Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a\",\"name\":\"Tata Capital\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g\",\"caption\":\"Tata Capital\"},\"sameAs\":[\"https:\/\/tata-blog.osian.dev\/blog\"],\"url\":\"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Certificate of Business Commencement (COB) | Tata Capital","description":"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Certificate of Business Commencement (COB) | Tata Capital","og_description":"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.","og_url":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/","og_site_name":"TATA Capital Blog","article_published_time":"2025-02-13T09:45:40+00:00","article_modified_time":"2025-02-13T09:47:33+00:00","og_image":[{"width":1378,"height":1034,"url":"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2025\/02\/image4-2.jpg","type":"image\/jpeg"}],"author":"Tata Capital","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Tata Capital","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/","url":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/","name":"Certificate of Business Commencement (COB) | Tata Capital","isPartOf":{"@id":"https:\/\/www.tatacapital.com\/blog\/#website"},"datePublished":"2025-02-13T09:45:40+00:00","dateModified":"2025-02-13T09:47:33+00:00","author":{"@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a"},"description":"Learn what a Certificate of Commencement of Business is in India with Tata Capital. Know about the various procedures of the certificate to commence business, requirements, and forms.","breadcrumb":{"@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/certificate-of-business-commencement\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tatacapital.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Commencement of Business Certificate (COB)"}]},{"@type":"WebSite","@id":"https:\/\/www.tatacapital.com\/blog\/#website","url":"https:\/\/www.tatacapital.com\/blog\/","name":"TATA Capital Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tatacapital.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/5ccf99347b9365e2fa68bd32006d0b4a","name":"Tata Capital","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tatacapital.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a6a38ea7397ec3ff4a8dc9b854558dbfc2d1c417498effd79c6186d3edf6ae28?s=96&d=mm&r=g","caption":"Tata Capital"},"sameAs":["https:\/\/tata-blog.osian.dev\/blog"],"url":"https:\/\/tata-blog.osian.dev\/blog\/author\/admin\/"}]}},"featured_image_url":"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2025\/02\/image4-2.jpg","_links":{"self":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/47906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/comments?post=47906"}],"version-history":[{"count":1,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/47906\/revisions"}],"predecessor-version":[{"id":47908,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/posts\/47906\/revisions\/47908"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media\/47907"}],"wp:attachment":[{"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/media?parent=47906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/categories?post=47906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tata-blog.osian.dev\/blog\/wp-json\/wp\/v2\/tags?post=47906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}