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FILE E form INC 20A
What is Commencement of Business Certificate and form INC 20A?
All you need to know
The newly rolled out and most discussed among the corporate is Form INC 20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.
Form INC 20 A(Commencement of Business Certificate):
Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
Who should file form INC 20A?
On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from the date of incorporation of the company.
Form INC 20 A late filing fees (Commencement of Business Certificate):
Period of delay | late fees |
Up to 30 days | 2 times of normal fees |
More than 30 days and up to 60 days | 4 times of normal fees |
More than 60 days and up to 90 days | 6 times of normal fees |
More than 90 days and up to 180 days | 10 times of normal fees |
More than 180 days | 12 times of normal fees |
What are the Penalties for non filing of Form INC 20 A for Commencement of Business?
- Company will be liable to pay Rs. 50,000 penalty for not filing the Form INC 20A
- Every officer who is in default is liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-
- Registrar may initiate action for the removal of the name of Company / Strike off company name
Consequences of non-filing of Form-INC-20A may create hindrance for companies to start their business and also while borrowing of money. The company would be liable to a Penalty for late filing the Form INC-20A if it exceeds 360 days of from the date of incorporation.
Documents required for obtaining Commencement of Business Certificate
Quick Checklist
- Subscribers proof of payment for value of shares i.e. bank statement of Subscribers
- Photograph of Registered office both inside and outside with the director signing the form
- Certificate of Incorporation
- Digital Signature of Director
OUR BLOGS
- What is form MCA 20A and who should file “Form INC 20A”?
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All the companies incorporated on or after 02/11/2018 and having a share capital to file form 20A.
- What details are required to be furnished in this form?
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Declaration that all the subscribers to the MOA have remitted the total value of the shares agreed to be taken by them in the Companies Bank Account.
- Form where can i download INC form 20A?
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Commencement form INC 20A can be downloaded from MCA’s offcial website.
- What is the due date of form INC 20A filing for Commencement of Business?
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Company incorporated on or after 02/11/2018 should file the form within 180 days of incorporation.
