COMMENCEMENT OF BUSINESS (INC-20A)
eForm INC-20A (Declaration for commencement of business) is required to be filed pursuant to Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014.
As per new section inserted after section 10 of the companies act 2013, section 10A says a company incorporated on or after 02//11/2018, having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the directors within 180 days from date of incorporation of company in INC form 20A (notified on 26/01/2019), with the Registrar of Companies that ‘every subscriber to the MOA has paid the value of the shares agreed to be taken by him on the date of making of such declaration” and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant, in practice.
Due date for the first time filing of “Form 20A”
|Company incorporated on or after 02/11/2018|
From the date of incorporation within 180 days
Subscribers proof of payment for value of shares
One has to attach the Bank Account statement of Company having all credit entries for receipt of subscription money received from all subscribers to MOA.
Penalty if not Filed the form INC- 20
Company liable to pay Rs. 50,000
every officer who is in default liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-.
Consequence if form is not Filed within time
Registrar may initiate action for the removal of the name of Company
Company cannot borrow money
Company cannot start business
Note: In above Plans Excludes Government Fees. Re-Imbursable on Actual Basis.