Form INC-20A Applicability & Filing Process
Form INC-20A was introduced via Companies (Amendment) Ordinance 2018 wherein it made all companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital, mandatory to obtain commencement of business certificate before commencing any business or exercising any borrowing powers. Therefore after 02.11.2018, any company incorporated after this date would be required to obtain Commencement of Business Certificate.
It should be filed by the directors within 180 days from the date of incorporation of a company. Once the company receives a certificate of incorporation, the directors will file a declaration certificate of commencement of business. Our professionals will help you in filing FORM INC-20A.
Documents required
1. Proof of payment of subscribed capital (Bank statement/ NEFT / IMPS receipts)
2. Registration Certificate (Certificate of registration by RBI/ other regulators (applicable to NBFC)
There are two (2) situations, stated below:-
- Filing of form within one hundred and eighty (180) days: In this case file the E-form 20A with the fees depending upon the paid up Share capital of the company along with a proof of deposit of the paid-up share capital by the subscribers has been paid to the company.
- Filing of form after one hundred and eighty (180) days: In this case, we need to attach an application of delay for Form INC-20A with brief reasons for delay and other important merits of case. After that Follow up with the concerned Registrar is required until the form is approved by the Registrar.
Provision of Commencement of Business
The provision of Commencement of Business is given under section 10A which was inserted by the The Companies (Amendment) Ordinance, 2018. Let us go through section 10A under the Companies Act, 2013, which states:-
- A company incorporated after 2nd November, 2018 and having a share capital shall commence any business or exercise any borrowing powers after—
- a declaration in E-form 20A is filed by a director within a period of one hundred and eighty days (180) of the date of incorporation of the company 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 on the date of making of such declaration; and
- The company has filed with the Registrar a verification of its registered office as provided in sub-Âsection (2) of section 12.
- If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
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