Q.Under Section 10A of the Companies Act, 2013, a company having a share capital cannot commence business or exercise borrowing powers until:
(A) It completes its first Annual General Meeting
(B) A director files a declaration confirming subscribers have paid for their shares and registered-office verification is filed, within 180 days of incorporation
(C) The company earns its first year's profit
(D) The company appoints its statutory auditor

Section 10A conditions the right to start business on a director's declaration and registered-office verification, filed within a strict 180-day window.

Section 10A requires a share-capital company (incorporated after this provision took effect) to file, within 180 days of incorporation, a director's declaration confirming that every subscriber to the Memorandum has paid for the shares they agreed to take, together with verification of the registered office under Section 12 — only after this can the company commence business or exercise borrowing powers.

Option-by-option analysis:

• (A) Incorrect — the first AGM is a separate, later statutory event, unrelated to Section 10A's commencement requirement.
• (B) Correct — this is exactly the Section 10A requirement. …