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- Subscribers proof of payment for value of shares i.e. bank statement of Subscribers
- Certificate of Incorporation
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Commencement of Business (INC 20A) Filing
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.
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.
caagrawalkanhere.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, Company Annual Filing, LLP Annual Filing, Tax Consultancy Services, and management consultancy services to clients in India and abroad. Filing of E-Form INC-20A is easy, seamless, cheapest and quickest with caagrawalkanhere.com! Get in touch with caagrawalkanhere Compliance Manager to understand what is E – Form INC-20A filing process and whether you need to file E – Form INC-20A. You may get in touch with our compliance manager on 0755 276 1432 or email info@caagrawalkanhere.com for free query.
Benefits of filing Form 20A
Points to make your decision easy
Fund raising
The firm will then be qualified to use the borrowing capabilities upon filing the E-Form INC-20A within 180 days. Failure to file could prevent the business from borrowing money.
No penalties
The company can be protected from severe fines, such as Rs. 50,000 for the company and Rs. 1000 per day of default for directors up to a maximum of Rs. 1 lakh, if the form INC-20A is filed within 360 days.
Builds Credibility
A public database contains all the information related to the company. This feature makes it simple to verify the existence of the company, which eventually contributes to enhancing business credibility.
Documents required for obtaining Commencement of Business Certificate
FAQs On Commencement of Business (INC 20A) Filing
Get answers to all your queries
All the companies incorporated on or after 02/11/2018 and having a share capital to file form 20A.
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.
Commencement form INC 20A can be downloaded from MCA’s offcial website.
Company incorporated on or after 02/11/2018 should file the form within 180 days of incorporation.
Valid payment proof like NEFT / IMPS receipts need to be attached.
Registrar may initiate action for the removal of the name of Company.
Company cannot borrow money.
Company cannot start business.
