Commencement of business restriction requires director declaration and registered office verification before operations may begin. Companies with share capital cannot commence business or exercise borrowing powers until a director files a prescribed, verified declaration within the initial post incorporation period confirming subscribers have paid for their shares, and until the company files verification of its registered office; non compliance attracts penalties on the company and officers and permits the Registrar to initiate name removal proceedings where no declaration is filed and the Registrar reasonably believes the company is not carrying on business.