(1) A having a share capital shall not commence any business or exercise any borrowing powers unless— (a) a declaration is filed by adirector in such form and verified in such with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and the paid-up share capital of the company is not less than five lakh rupees in case of a public company and not less than one lakh rupees in case of a private company on the date of making of this 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. 21 (2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty which may extend to five thousand rupees and every officer who is in default shall be punishable with fine which may extend to one thousand rupees for every day during which the default continues. (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.
2.1.24-Companies (Incorporation) Rules,2014
The declaration filed by a director shall be in along with the fee as and the contents of the form shall be verified by a Company Secretary in practice or a Chartered Accountant or a Cost Accountant in practice: Provided that in the case of a company requiring registration from sectoral regulators such as Reserve Bank of India, Securities and Exchange Board of India etc, the approval from such regulator shall be required.
Companies (Incorporation) Second Amendment Rules, 2015
Enforcement Notification S.O. 1440(E) dated 29/05/2016
Enforcement Notification S.O. 902(E) dated 26/03/2014
The Companies (Amendment) Act,2015