law: Companies Act, 2013 
  11.
  
   Commencement
  
  of business, etc.
  1.      A company having a
  
  share capital shall not commence any business or exercise any borrowing powers
  
  unless—
  a.     
  
    a
  
  declaration is filed by a director in such form and verified in such manner as
  
  may be prescribed, 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.
  1.     
  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 subsection (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.