(1) A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2019 and having a share capital 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 such form and verified in such manner as may be prescribed, 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
Comment: 23A Declaration at the time of commencement of business.
The declaration under section 10A by a director shall be in Form No. lNC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a company Secretary or a chartered Accountant or a cost Accountant. in practice:
Provided that in the case of a company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.]
(b) The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
|Applicable to||Companies incorporated on or after 02/11/2018|
|Due date for filing||Within 180 days of Incorporation|
|Form to be filed||INC – 20A|
|Attachments Required||Subscribers proof of payment for value of shares (Bank statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA may be deemed fit)|
|Non Compliance of filing||1. If the register has a reasonable cause to believe the company is not carrying on any business or operation, Remove of name of the company from register of companies.
2. Cannot Start Business activity and Exercise any borrowing power (section 10A)
|Any default||Penalty :
Company : 50,000 Rs and
Every officer who is default : 1,000 for per day upto 1,00,000 Rs.
|Fees for filing INC – 20A||200 Rs/-|
|Additional Fees for delay in filing
delay Upto 30 days
> 30 < 60 days
> 60 < 90 days
> 90 < 180 days
> 180 days
|Fees to be payable
(2) If any default is made in complying with the requirements of this 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.
(3) 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 under Chapter XVIII.
DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK SETH AND CAN BE REACHED AT [email protected] OR 9910248911.