RishiFORM INC 20A MCA COMMENCEMENT OF BUSINESS
INC-20A, also known as declaration of Commencement of Business, is a Mandatory form that is to be filed by a company incorporated on or after 02/11/2018 with MCA. It is to be filed by the directors within 360 days from date of incorporation of a company (Increased to 360 from 180 days vide MCA circular no 11/2020).
As per section 10a of the Companies Act 2013, every company incorporated on or after 2nd November 2018, having share capital shall not commence its business or borrow money unless a declaration in Form INC 20A is filed by the directors.
The form is a declaration 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.
Due date of filing form 20A
Every company required to file form 20A shall file the same within 180 days of its incorporation with the concerned ROC (Registrar of Companies).
Documents and information
A proof of deposit of the paid-up share capital (like Bank statement of Company) by the subscribers also need to be attached in the eform.
In case Bank statement is not available or the transaction entries are not clear in the Bank statement, a valid proof of payment like NEFT/IMPS receipts should be attached.
A declaration under section 10A by a director shall be in Form No, 1NC-20A itself and the contents of the said form shall be verified by a company Secretary or a chartered Accountant or a cost Accountant.
If a company have objects requiring registration or approval from any sectorial regulators such as The Reserve Bank of India and securities and exchange board of India etc. then it must obtain such registration or approval along with the attached declaration.
Penalties for Default
The penalties for non-compliance are very high which are as follows:
· A penalty of Rs 50,000 will be levied on the company if it fails to comply with the mentioned requirement.
· Every such officer in default shall be liable to a penalty of Rs 1000 per day for each day during which the default continues subject to a maximum of Rs. 1,00,000.
Consequences of Non Filing of Form INC 20A
Company cannot start business or borrow money until and unless the e form INC 20A is filed with Registrar.
Non filing of Form INC 20a may also initiate action for the removal of the name of Company if the Registrar has reasonable cause to believe that the company is not carrying on any business or operations.
For any query filing of form INC20A, feel free to contact at 9716847407 or 9899595719 or mail us at taxwizersconsultant@gmail.com
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