New Form Introduced for Declaration (Form INC-20A) for Commencement of Business by Ekta Wadhwani


Form INC-20 A has been revised and without condonation of delay filing and we can file the form with additional fees as prescribed.

MCA vide Notification dated 18/12/2018 Companies (Incorporation) fourth amendment Rules, 2018 has come into force wherein after rule 23, “Rule 23A has been inserted” stating that the declaration to obtain certificate of commencement of business is required to be filed in Form – INC- 20A.

The Directors of the Companies which did not file Form INC-20A pursuant to Section 10A(1)(a) within 180 Days of its date of Incorporation and were facing problem as the form was not taking pre-fill after entering the CIN, can now file the form as the form has been revised although the date has not been updated and thus after entering the CIN, pre-fill option would work without showing any error for Condonation of delay.

Complete information related to Form INC-20A:

  • Law(s) Governing the e-Form:

Pursuant to

  • Section 10A(1)(a) of the Companies Act, 2013 and
  • Rule 23A of the Companies (Incorporation) Rules, 2014
  • Applicable for:

Companies incorporated after the commencement of the Companies (Amendment) Ordinance, [2019] (i.e. Companies incorporated on or after November 2, 2018) and having a share capital.

  • Purpose of the e-Form:

Commencement of business and exercising borrowing powers

  • Section 10A:

Company cannot commence its business or exercise any borrowing powers unless:

  • E-form INC-20A and
  • E-form INC-22 for verification of registered office as per Section 12(2) has been filled

 

  • E-form INC-20A:

Declaration by Director within 180 days of incorporation verifying with the Registrar that, every subscriber to Memorandum have paid the value of shares agreed to be taken by him on the date of making such declaration in their sharing ratio.

  • Default (Penalty):

The company shall be liable to a penalty of 50,000 (fifty thousand rupees) and every officer who is in default shall be liable to a penalty of 1,000 (one thousand rupees) for each day during which such default continues but not exceeding an amount of one lakh rupees.

  • Change from Section 11:
  1. Penalty increase from 5000 to 50,000
  2. Paid-up share capital criteria of Public and Private Company of Five Lakh ad One Lakh.
  • Chapter XVIII (removal of the name of the company from the register of companies):

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.

  • Other Important Points:
  1. It is a STP Form.
  2. Fees of the form shall be as per The Companies (Registration Offices and Fees) Rules, 2014
  3. Contents of the said form shall be certified by a Company Secretary or a Chartered Accountant or a Cost Accountant in Practice.
  4. in the case of a company pursuing objects requiring registration or approval from any Sectoral Regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration/approval, as the case may be from such regulator shall also be obtained and attached with the declaration
  • Mandatory Attachments:
  1. Subscribers proof of payment for value of shares (bank Statement of the Company showing payment of subscription Money from the personal Account of Subscribers).
  2. Certificate of Registration issued by the RBI (Only in case of Non-Banking Financial Companies) /from other regulators.
  • Fees Table as per The Companies (Registration Offices and Fees) Rules, 2014 :
Fee for filing e-Forms or documents in case of company have share capital 

Nominal Share Capital

Fee applicable

Less than 1,00,000

Rupees 200

1,00,000 to 4,99,999

Rupees 300

5,00,000 to 24,99,999

Rupees 400

25,00,000 to 99,99,999

Rupees 500

1,00,00,000 or more

Rupees 600


Additional fee rules

Period of delays

All forms

Up to 30 days

2 times of normal fees

More than 30 days and up to 60 days

4 times of normal fees

More than 60 days and up to 90 days

6 times of normal fees

More than 90 days and up to 180 days

10 times of normal fees

More than 180 days

12 times of normal fees


 

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