A company incorporated on or after 2nd November, 2018, The Companies (Amendment) Ordinance), 2018 shall not commence its business or exercises any borrowing powers unless:-

√ A declaration is filed by a director with ROC within a period of 180 days from incorporation of company that every subscriber to the MOA has paid the value of the shares agreed to be taken by him.

√ A verification of registered office as required- within 30 days of incorporation.

Applicability to:

Companies having share capital (Public as well as Private Company) incorporated on or after 2nd November, 2018.

Form need to be file:

e-form INC- 20A

Document to be filed with e-form:

Bank statement can be filed as proof of subscription money received from subscribers.

Draft of resolution

Consequences of non-filing of respective form within specified days:

Company shall be liable for Penalty of Rs. 50,000/- and

Every officer shall be liable for penalty of Rs. 1,000/- for each day during which default continue but maximum penalty Rs. 100,000/-

Other consequences

If company fails to file such declaration within specified days from the date of incorporation then Roc has reasonable cause to believe that the Company is not carrying on any business or operation, ROC may, initiate action for removal of name of Company.

Point to be Note:

√ Company cannot start any business activity before filing of declaration with ROC.

e-form INC-20A is mandatory to get certified by Practicing CS, CA or CWA.

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March 2021