CA Ankit Gupta
After the commencement of Companies (Amendment) Ordinance Act, 2018, every company shall obtain certificate of Commencement of business by filing form INC 20A within 180 days of its incorporation.
The form INC 20A is now available for every one from 26 Jan’2018; before filing such form one must know everything about it which is described as under.
WHO SHALL FILE
Every company incorporated after the Commencement of Companies (Amendment) Ordinance 2018 (i.e 02 November 2018)
And
Having Share Capital
WHO SHALL NOT FILE
In my opinion, following companies are not required to file INC 20A
1. Companies incorporated before 02 Nov 2018
2. Companies incorporated after 02 Nov 2018 not having share capital
WHEN
Every such company is required to FIle INC 20A form within 180 days of its incorporation.
WHAT NEEDS TO BE SPECIFIED THEREIN
The main objective of this form is to obtain information from company regarding the receipt of value of shares agreed to be taken by them at the time of incorporation of company
Hence, company is required to give proof of receipt of such payment from its subscribers and detail of its regulator like SEBI, IRDA, RBI (if applicable)
ATTACHMENTS TO BE GIVEN ALONG WITH FORM
INC20A require only one mandatory attachment in the form of Subscribers proof of payment for value of shares.
In my opinion, one can attach the bank statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA
In case Bank statement is not available then one can attach the valid payment proof like NEFT / IMPS receipts.
Certificate of registration issued by RBI is also mandatory only for those companies whose affairs are regulated by any regulator prescribed above.
FEE FOR FLING INC 20A
| NOMINAL SHARE CAPITAL | NORMAL FEE |
| Less than Rs.1 lakh | Rs.200 |
| 1,00,000 – 4,99,999 | Rs.300 |
| 5,00,000-24,99,999 | Rs.400 |
| 25,00,000-99,99,999 | Rs.500 |
| 1,00,00,000 or more | Rs.600 |
ADDITION FEE (if form not filed within the stipulated time)
| PERIOD OF DELAY | ADDITIONAL FEE |
| Upto 30 days | 2 times of normal fee |
| More than 30 days and upto 60 days | 4 times of normal fee |
| More than 60 days and upto 90 days | 6 times of normal fee |
| More than 90 days and upto 180 days | 10 times of normal fee |
| More than 180 days | 12 times of normal fee |
OTHER CONSEQUENCES OF NON FILING
If the company fails to comply the requirements of Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014 then possible consequences are:
1. Company shall be liable to pay penalty of Rs.50,000
2. Every officer in default shall be liable to pay penalty of Rs.1000 per day during which such default continues, subject to maximum of Rs.1,00,000
3. Where no declaration is filed within the stipulated time and the Registrar has reasonable cause to believe that the company is not carrying any business then the registrar may initiate the action for removal of name of company from the register of Companies under Chapter XVIII (Strike off by Registrar)
For any queries and suggestions- The Author CA Ankit Gupta can be reached at 9811985576 or mail us at caankitgupta27@gmail.com
Disclaimer – This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be uses as legal opinion and not to be used for rendering any professional advice
Thank you. Is there any procedure now to file INC20A if it has not been filed within the 180 day period?
thank you