Declaration for Commencement of Business
Form INC-20A:
e-Form INC-20A is required to be filed Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014 for the purpose of Declaration for Commencement of Business.
Section 10A: COMMENCEMENT OF BUSINESS etc.
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 e-form INC 20A, duly verified by director and certified by practicing professional, 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
- The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12 (i.e., INC-22).
Rule 23A: DECLARATION AT THE TIME OF COMMENCEMENT OF BUSINESS.
The declaration under section 10A by a director shall be in Form No, lNC-20A and shall be filed 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.
Further Section 10A(2) and (3) provides for the consequences of not filing the FORM INC-20A which is analyzed here in this article.
1. Penalty for not filing
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. Consequence for not filing declaration
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 penalty for not filing as stated above, initiate action for the removal of the name of the company from the register of companies.
hello
I have incorporated a OPC PRIVATE limited by capital on 21/10/2021 and not filed INC-20A still because the company has not yet opened bank account and do not have any transactions. Now directors want to strike off the company but till date no forms filed to roc.
So can I file INC-20A now stating that the capital is received in cash from the subscribers and if so please share relevant section that states the capital can be introduced in cash. and we can proceed for that.
Dear Sir
My company is incorporated on 17/09/2021 but till date company has not filed INC-20A. My question to you is how company will prepare its Financial statement and whether it is required to file AOC-4.
kindly reply.
Thank you
As Company got incorporated on 12/03/2019 and have not filed INC-20A till date and company not opened bank account till date.
Can i file INC-20A now?
What will be the Proceedure
Hi,
I have incorporated a Section 8 Company limited by capital on 09/11/2020 and not filed INC-20A still because the company has not yet opened bank account and do not have any transactions.
Now I am trying to file annual returns but it throwrs me an error that INC-20A is not filed. So can I file INC-20A now stating that the capital is received in cash from the subscribers and if so please share relevant section that states the capital can be introduced in cash.
Hi Satish,
You can call me @ 9711975109 to discuss it, as there are few facts to be confirmed before guiding on the issue.
What will be penalty if not filled upto 31st,
august, 2021
A company incorporated on 21st November Failed to comply to file INC 20 A.
What would be consequences as well as penalties and fines?
Same problem with me
I have Incorporated a company on 20/01/2021. But till date 30/08/2021 we have not filled INC-20A . Is there is any relief if I filled form INC-20A Now.
Hi Harvinder ji,
As per MCA Circular No. 11/2021, if the due date of filing the Form INC-20A falls within 1st April, 2021 to 31st July 2021 then it can be filed by 31st July, 2021.
In your case, the due date of Form Filing is falling between these 2 dates and hence, it can be filed by 31st August, 2021.
Hi Harvinder ji,
As per MCA Circular No. 11/2021, if the due date of filing the Form INC-20A falls within 1st April, 2021 to 31st July 2021 then it can be filed by 31st August, 2021.
In your case, it can be filed till 31st August.
Malkit ji,
Is there any extension provided by govt for filing commencement form?
As per MCA Circular No. 06/2021, if the due date of filing the Form INC-20A falls within 1st April, 2021 to 31st May 2021 then it can be filed by 31st July, 2021.