Introduction: Form INC-20A plays a crucial role in the compliance framework for companies incorporated in India under the Companies Act, 2013. It pertains to the declaration of the commencement of business and involves specific procedures, time limits, and eligibility criteria. This comprehensive guide aims to provide a detailed overview of Form INC-20A, covering its legal foundation, eligibility requirements, filing procedure, fees, and potential penalties.
RELATED LAWS
Section 10A(1)(a) of the Companies Act, 2013 read with Rule 23A of the Companies (Incorporation) Rules, 2014 deals with the declaration for commencement of business.
ELIGIBILITY
The companies that are required to file Form INC-20A are as follows:
1. Companies incorporated on or after 2 November 2018 (i.e. after the commencement of the Companies (Amendment) Ordinance, 2018) and
2. Companies incorporated after 2 November 2018 having a share capital
TIME LIMIT
Form 20A is a declaration filed by the directors within 180 days from the date of incorporation of the company.
VERIFICATION
Form 20A should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
PROCEDURE
1. Visit the MCA portal at mca.gov.in.
2. Log in using your ID and password.
3. Click on MCA Services> Company E-filing> Informational Services> INC-20A- Declaration for commencement of business.
4. Fill in the relevant details and attach the necessary documents.
5. Pay the relevant fees and submit.
ATTACHMENTS
1. Bank statement showing the subscription amount received by the company.
2. Photograph of the Registered Office showing the external building and inside office also showing therein at least one Director/ KMP.
Note: All the attachments shall be either in pdf or.jpg format and the size of each attachment can be up to 2MB.
FEES
1. Fees to be charged in case the company is having share capital
| S.no. | Nominal Share Capital (INR) | Fee applicable (INR) |
| 1 | Less than 1,00,000 | 200 |
| 2 | 1,00,000 to 4,99,999 | 300 |
| 3 | 5,00,000 to 24,99,999 | 400 |
| 4 | 25,00,000 to 99,99,999 | 500 |
| 5 | 1,00,00,000 or more | 600 |
2. Additional Fees in case of delay in filing of form
| S.no. | Nominal Share Capital (INR) | Fee applicable (INR) |
| 1 | Upto 30 days | 2 times of normal fees |
| 2 | More than 30 days and upto 60 days | 4 times of normal fees |
| 3 | More than 60 days and upto 90 days | 6 times of normal fees |
| 4 | More than 90 days and upto 180 days | 10 times of normal fees |
| 5 | More than 180 days | 12 times of normal fees |
PENAL PROVISION- SECTION 10A(2)
1. 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.
2. If the Registrar has reasonable grounds to believe that the company is not carrying on any business or operations even after 180 days of incorporation, the Registrar may remove the name of the company from the Register of Companies.
Conclusion: Form INC-20A is a critical element in the regulatory landscape for companies in India. This guide aims to equip businesses with comprehensive insights into the legal requirements, procedural intricacies, and potential consequences associated with the declaration of commencement of business. Ensuring timely and accurate compliance with Form INC-20A is crucial for maintaining good standing and avoiding penalties.
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DISCLAIMER:- This Blog is for the purposes of information/knowledge and shall not be treated as solicitation in any manner or for any other purposes whatsoever.
Feel free to contact the author for further clarification at 9953808432 or via mail at cssinghaniaandassociates@gmail.com. The author is the founder of SINGHANIA & ASSOCIATES (Practicing Company Secretaries Firm) based in Delhi.
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