As per Companies (Amendment) Ordinance 2018 a new section 10A has been introduced with effect from 2nd November 2018, which provides that:
Section 10A(1) A company incorporated after the commencement of Companies (Amendment) Ordinance 2018 and having share capital shall not commence any business or exercise any borrowing power unless:
(a) a declaration is filed by director within 180 days of incorporation of the company in e-form INC- 20A and the contents of said form has been verified by a Company Secretary or a Chartered Accountant or a Cost Accountant in practice and the e-form INC-20A shall be filedwith the registrar of companies that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) company has filed the verification of its registered office with the Registrar as per section 12(2).
Penalty For not Filling:
As per sub section (2) of section 10A, if any company made any default in complying the requirements of this section then company shall be liable for penalty of Rs 50000 and every officer who is in default shall be liable for penalty of Rs 1000 for each day during whichsuch default continue but not exceeding an amount of Rs. 100000.
As per sub section (3) of section 10A, 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.