Below mentioned are the general FAQ’s regarding form INC-20A. (Commencement of Business Certificate)
1. Who is required to file form INC – 20A?
Ans: As per Companies (Amendment) Ordinance, 2018, all the Companies registered in India and having a share capital is required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers. Since The Companies (Amendment) Ordinance 2018 was introduced in November 2nd 2018 and hence any company incorporated after 2nd November 2018 would be required to obtain Commencement of Business Certificate.
2. What is the Time limit for obtaining Commencement of Business Certificate?
Ans: The commencement of business certificate must be obtained within 180 days of incorporation of the company.
3. What is the penalty for the non-filing of form INC – 20A?
Ans: Any company which have not obtained the commencement of business certificate within 180 days of incorporation, it will be liable for payment of a penalty of Rs. 50,000/-. Each of the Directors who have defaulted would be liable for payment of a penalty of Rs.1,000/- per day of default up to a maximum of Rs.1 lakh.
4. What are the consequences for non-filing of form INC – 20A?
Ans: After 180 days of incorporation and if the company has not filed the form INC – 20A, if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he/she may initiate action for the removal of the name of the company from the register of companies (i.e. Company Strike-Off)
5. What are the documents to be attached while filing form INC – 20A?
Ans: Subscribers proof of payment for value of shares i.e, Bank statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA.
6. Whether the form INC – 20A needs to be certified by any professional?
Ans: Yes, the form needs to be certified. (Chartered Accountant/Cost Accountant/Company Secretary)