FORM INC-20A(DECLARATION FOR COMMENCEMENT OF BUSINESS) :
INC-20A is a mandatory form that is to be filled by a company incorporated on or after 2/11/2018 with MCA. It is also known as Declaration for commencement of business. It should be filled by the directors within 180 days from date of incorporation of a company which has share capital. Once the company receives a certificate of incorporation, the directors will file declaration certificate of commencement of business.
Companies which are not required to file form INC-20A
The following companies are not required to file form INC 20A:
- Company incorporated before 2 Nov,2018 (i.e. before the commencement of the Companies (Amendment) Ordinance, 2018.
- Companies incorporated after 2 Nov,2018 without share capital.
Time-period for filing form INC- 20A
Every company required to file form INC- 20A within 180 days from the date of commencement of the business.
Process of filing form INC- 20A
- Company Bank account
- Collection of the capital
- Deposit share capital in the Company bank account
- File form INC- 20A
Documents required for filing form INC- 20A
The Documents required for filing form INC- 20A are:
- Proof of payment of subscribed capital.
- Certificate of registration by RBI/other regulators (applicable to NBFC).
- Other attachments, if any.
Who can digitally sign the E-Form?
The form shall be signed by-
- The Director of the Company authorized by the Board of Directors of the Company.
- Practicing professional (Chartered accountant/Cost accountant/Company secretary (in whole-time practice).
Penalties for non-compliance of Form INC-20A
When it comes to filing Form INC- 20A, any negligence can attract hefty penalties. The goal is to reduce the number of fake companies being incorporated. The penalties for filing Form INC-20A, are as follows;
- Defaulting Companies– Companies that do not comply with the basic requirement of filing Form INC- 20A for the commencement of business, will have to file a penalty of Rs. 50,000/-
- Defaulting officers– Every Company officer who is responsible for filing Form INC- 20A will be charged a penalty of Rs. 1,000/- day, for every day, until the form is filed, until it reaches the maximum amount of Rs. 1,00,000/-
- ROC removal of the company: The ROC can remove a company name from the registry, if the company has not executed any business transaction or operation, after 180 days of registering the business.