prakash (Company Secretary) (1352 Points)
19 December 2014Dear All,
Can companies commence it business soon after its filing form 21 but before approval of the same?
i opine that company can commence it business soon after filing of declaration, not to wait for approval of form as per section 11 of the Companies Act, 2013
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 19 December 2014
Yes, Section 11(1) clearly provides for 'filing' of declaration and not its 'approval'.
But a problem may arise in a hypothetical case where the ROC asks for some additional information and company fails to provide the same to the satisfaction of ROC within the prescribed time. In such a case the form can be rejected and treated as not filed. Hence one prefers to wait for its approval. Of course, chance of such case is remote.
CAclubindia
