Declaration of commencement of business (Pursuant to Section 10A(1)(a) of the Companies Act, 2013 read with Rule 23A of the Companies (Incorporation) Rules, 2014).
Introduction:
A company with Share Capital is required to file the declaration for commencement with the Registrar of Companies (RoC). The declaration is to be filed by a Director in the e-Form INC-20A application within one hundred and eighty days of the date of incorporation of the company. It should be verified by a Chartered Accountant (CA), Company Secretary (CS), or a Cost Accountant in practice.
Details and Documents required for filing e-Form INC 20A:
1. Name of the bank with IFSC code in which the amount of subscription money is received for shares subscribed during incorporation;
2. Bank Account Number;
3. Date of receipt;
4. Amount of receipt;
5. Photograph of Registered Office showing external building and inside office also showing therein at least one Director/KMP (Mandatory Attachment).
6. Bank Statement showing the amount of receipt (optional).
Board resolution for Authorization to file e-Form INC 20A:
“RESOLVED THAT pursuant to the provisions of Section 10A(1)(a) of the Companies Act, 2013, read with Rule 23A of the Companies (Incorporation) Rules, 2014, and such other provisions (including any statutory modifications or re-enactments thereof) as may be applicable for the time being, the consent of the Board of Directors of the Company be and is hereby accorded to file e-Form INC 20A, Declaration of Commencement of Business, with the Registrar of Companies.
RESOLVED FURTHER THAT any of the directors of the Company, jointly or severally, be and are hereby authorized to file and submit the requisite e-Form INC – 20A with the Registrar of Companies and to do all the needful in this regard.“
Conclusion:
A newly incorporated company can commence business once the subscribers to MOA (Memorandum of association) have deposited the subscription amount with the Company. E-Form (INC-20A) is required for every company giving declaration through this e form for commencement of business; without filling this e form, the company can’t start the business.
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