Cause Notice under Section 10A of the Companies Act, 2013 for non filing of form INC-20A Commencement of business


3[,2[1[10A.Commencement of business etc.

(1) A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2[2019] and having a share capital shall not commence any business or exercise any borrowing powers unless—

(a) a declaration is filed by a director within a period of one hundred and eighty days 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

(b) The company has filed with the Registrar a verification of its registered office as provided in sub-­section (2) of section 12.  

(2) 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.

(3) 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 under Chapter XVIII.]

Amendments

1.Inserted by the Companies (Amendment) Ordinance,2018 Dated 02.11.2018

2.Inserted by the Companies (Amendment) Ordinance,2019 Dated 12.01.2019    [Companies (Amendment) Ordinance 2018 is repealed on 12th January 2019] 

3.Inserted by the Companies (Amendment) Act,2019 -: Effective From 02nd November 2018   [Companies (Amendment) Second Ordinance 2019 is repealed on 31st July 2019]


For Non-Compliance of the provision of section 10A of the Companies Act, 2013, read with Rule 23A of the Companies (Incorporation) Rules, 2014, ROC sending Notices as cited below:

Government of India
Ministry of Corporate Affairs
Office of the Registrar of Companies, Kerala and Lakshadweep
First Floor, Company Law Bhavan, B.M.C. Road, Thrikkakara. Kochi, Kerala

 

No. ROC.K/Section 10A/ Show Cause/INC-20A/2019                                                                                                                                                                                             Dated 20-12-2019

To,

M/s.     XXXX SERVICES PRIVATE LIMITED bearing Corporate Identity Number (CIN) XXXXXXXXXXXX (by e-mail: , only)

Subject: - Show Cause Notice under Section 10A of the Companies Act, 2013, read with Rule 23A of the Companies (Incorporation) Rules, 2014 and the Companies (Adjudication of Penalties) Rules, 2014.

 

  1. WHEREAS under the provisions of Section 10A of the Companies Act, 2013, a Company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless  a declaration is filed by a director within a period of one hundred and eighty days 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.

 

 

  1. AND WHEREAS the Rule 23A of the Companies (Incorporation) Rules, 2014 provides that the declaration under section 10A by a director shall be in e-form namely INC-20A and shall be filed with the e-registry within 180 days from its incorporation on payment of such registration fee as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant in practice.

 

 

  1. AND WHEREAS If any default is made in complying with the requirements of Section 10A, 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.

 

 

  1. AND WHEREAS on perusal of the record room of e-registry of companies, it is noticed that the captioned Company incorporated on 18-01-2019 was under statutory obligation to file the declaration for commencement of business in prescribed e-form namely INC-20A within 180 days of its incorporation. However, till 16-Dec-2019 the Company has not filed the said e-form and delay occurred for more than 280 (180+100) days. Therefore the undersigned has reasonable cause to believe that the default has occurred in complying with the requirements of Section 10A, and the company became liable to a penalty of fifty thousand rupees and every officer in default became liable to the maximum penalty of one lakh rupees.

 

 

  1. AND WHEREAS the Company and the officer in default are hereby called upon to show cause within 15 days from the date hereof, as to why the penalty should not be imposed on the company and the officers in default for non-compliance of Section 10A of the Companies Act,2013.

 

Please take note that if your reply is not received within the stipulated period or found to be unsatisfactory, the adjudicating authority shall pass the necessary orders for imposing the penalty.

The company is also directed to serve a copy of the said notice to all Directors and this notice will be treated as deemed to have been served upon the each officer in default and the Company in terms of Section 20 of the Companies Act, 2013. 


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