What is Form Form INC -20A?
eForm 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.
The purpose of the form is Declaration prior to the commencement of business or exercising borrowing powers.
What is Section 10A?
A Company shall not commence any business or exercise any borrowing powers unless
(a) 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 form INC 20 A 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
(b) The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
Non-Compliance with Section 10A?
If any default is made in complying with the provisions of the above 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.
Consequences of Non-Filing of Form INC 20 A
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 sub-section (2), initiate action for the removal of the name of the company from the register of companies.
Attachments of Form INC 20 A
- Subscribers proof of payment for value of shares
- Certificate of Registration issued by the RBI (Only in case of Non-Banking Financial Companies) /from other regulators (It is mandatory to attach these documents if the affairs of the Company is regulated by any sectoral regulator (like RBI in case of NBFI activities)
Processing of Form INC 20 A in ROC
This form will be auto-approved by MCA which means once the professional files the form gets approved at the same time.
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