Is Section 11 of the Companies Act 2013 still in force?

No. Section 11 was omitted by section 4 of the Companies (Amendment) Act, 2015 with effect from 29 May 2015.

Which provision now governs commencement of business?

Section 10A of the Companies Act, 2013 contains the current commencement of business requirement for a company incorporated after the commencement of that provision and having a share capital.

What is the time limit for the commencement declaration?

The prescribed declaration is required within 180 days of incorporation, subject to the conditions in section 10A and the applicable rules.

Companies Act, 2013

Section 11 of Companies Act, 2013: Omitted - Current Commencement of Business Law under Section 10A

Section 11 originally dealt with commencement of business by certain companies. It is no longer an operative provision. The Companies (Amendment) Act, 2015 omitted Section 11 with effect from 29 May 2015. The present commencement-of-business requirement is contained in Section 10A of the Companies Act, 2013.

Legal status of Section 11: Section 11 stands omitted. It should therefore not be relied upon as the current statutory provision governing commencement of business.

What did Section 11 deal with?

As originally enacted, Section 11 was titled "Commencement of business, etc." and imposed commencement-related conditions on specified companies having a share capital. Parliament later removed the section through Section 4 of the Companies (Amendment) Act, 2015.

Accordingly, the correct way to read the present Companies Act is to note Section 11 as "Omitted" and then refer to Section 10A for the current statutory requirement.

Current law: Section 10A - Commencement of business, etc.

Section 10A applies to a company incorporated after the commencement of that provision and having a share capital. Such a company cannot commence business or exercise borrowing powers unless the statutory conditions are satisfied.

In practical terms: a director must file the prescribed declaration within 180 days from incorporation confirming that every subscriber to the memorandum has paid the value of the shares agreed to be taken, and the company must comply with the registered-office verification requirement referred to in Section 10A.

Meaning of the principal requirements

Subscriber: a person who subscribes to the memorandum and agrees to take the stated number of shares at incorporation.
Declaration: the statutory declaration by a director confirming payment by the subscribers as required by Section 10A.
Registered office verification: compliance with the verification requirement under Section 12(2) of the Companies Act, 2013.
Borrowing powers: until Section 10A is complied with, the company covered by the provision cannot exercise its borrowing powers.

Form INC-20A and the 180-day requirement

The declaration for commencement of business is prescribed under the Companies (Incorporation) Rules, 2014 and is filed electronically in Form INC-20A. The statutory period under Section 10A is 180 days from the date of incorporation.

Before filing, the company should ensure that the subscription money required from the subscribers has actually been received and that the applicable registered-office requirements have been complied with. Current forms, filing instructions and fee information should be checked on the official Ministry of Corporate Affairs portal before filing.

Penalty for non-compliance with Section 10A

Default	Statutory consequence
Company defaults in complying with Section 10A	The company is liable to a penalty of Rs. 50,000.
Officer in default	Penalty of Rs. 1,000 for each day during which the default continues, subject to a maximum of Rs. 1,00,000.
Declaration not filed and Registrar has reasonable cause to believe the company is not carrying on business or operations	The Registrar may initiate action for removal of the company's name from the register under Section 248.

Section 11 and Section 10A: important distinction

Provision	Present position
Section 11 - Commencement of business, etc.	Omitted by the Companies (Amendment) Act, 2015 with effect from 29 May 2015.
Section 10A - Commencement of business, etc.	Current provision governing commencement declaration for companies falling within its scope.

Related provisions

Section 10A should be read with Section 12 - Registered Office of Company and, where the Registrar considers removal of the company's name, with the applicable provisions of Section 248. For the surrounding incorporation provisions, see Sections 3 to 20 of the Companies Act, 2013.

Official resources

For the updated statutory text and current e-filing requirements, refer to the Ministry of Corporate Affairs and India Code - Companies Act, 2013. These are body links for reference and are not included in the website navigation menu.

Frequently Asked Questions

Is Section 11 of the Companies Act, 2013 still applicable?

No. Section 11 was omitted with effect from 29 May 2015. The current Act shows Section 11 as omitted.

Which section now deals with commencement of business?

Section 10A contains the current commencement-of-business requirement for companies within its scope.

Within how many days is the declaration required?

The declaration contemplated by Section 10A must be filed within 180 days of incorporation.

Can a covered company borrow before complying with Section 10A?

No. Section 10A restricts both commencement of business and exercise of borrowing powers until the statutory conditions are satisfied.

Updated: 16 September 2026. This page is a general legal-information resource. Verify the latest Act, Rules, notifications, forms and MCA filing requirements for a particular transaction.