Form INC-20A Declaration for Commencement of Business on MCA v3 Portal

In this article author has tried to explain the procedure to be followed while filing form INC 20A in a brief and simplified manner:

Form INC-20A ‘Declaration for Commencement of Business’ on MCA v3 Portal

Process For filing form INC 20A:

mca.gov.in > MCA Services > Company e-filing > Information Services > INC 20- Declaration for commencement if Business

Who Needs to file: The company having share capital and incorporated after 2^ND Nov 2018.

Time Limit: Within 180 days of date of its incorporation

Purpose:

• To inform the ROC that subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of filing of this form
• The company has filed with the registrar the Form INC 22 for verification of its registered office
• To inform the Registrar that any approval from sectoral regulator like RBI, SEBI etc has been obtained

Restrictions:

• Without filing this form company cannot start business
• Company cannot exercise borrowing power
• Company cannot fill forms like Change in registered office, Annual filing, DIR 3KYC, MGT 14, Charge related forms

Default:

• In case of default the company shall be liable to a penalty of INR 50,000 fifty thousand rupees
• Every officer who is in default shall be liable to a penalty of INR 1,000 for each day during which such default (Max One Lakh).

Power of the Registrar in case of failure:

Where no declaration has been filed with the 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 initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.

Attachment:

• Photograph of Registered Office showing external building and inside office also showing therein at least one Director/ KMP
• The proof of receiving the subscription money in the form of bank statement. On MCA v3 portal Name of the shareholder, name of the bank with IFSC code, Account number, date of receipt and amount id required to be filled

Certification by Professional: This e-Form must be verified by

• A chartered Accountant in practice
• A company Secretary in practice
• A cost Accountant in practice.

For any inquiry you may write us on: ramanujan.ca@gmail.com

Disclaimer: The information provided by the author in the article is for general informational purposes only. All information provided is in the good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in the article.