eForm INC-20A is required to be filed pursuant to Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014, which are reproduced for your reference.
Purpose of the eForm
Declaration prior to the commencement of business or exercising borrowing powers
Is it mandatory to file form INC 20A?
Yes, it is mandatory to obtain a certificate of Commencement of Business by filing form 20A.
Who shall file “Form INC 20A”?
- all the companies incorporated on or after 02//11/2018
- and having a share capital to file form 20A
What is the due date of filing form INC 20A ?
A company incorporated on or after 02//11/2018, Due date for eform 20A; From the date of incorporation within 180 days.
What details are required to be furnished in “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.
What are the attachments to the form 20A?
Subscribers proof of payment for value of shares
One has to attach the Bank Account statement of Company having all credit entries for receipt of subscription money received from all subscribers to MOA.
What if Bank Statement is not available?
valid payment proof like NEFT / IMPS receipts.
What are the Penalty if not Filed the form INC- 20?
- Company liable to pay Rs. 50,000
- every officer who is in default liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-.
What are the Consequence if form is not Filed within time?
- Registrar may initiate action for the removal of the name of Company
- Company cannot borrow money
- Company cannot start business
- A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless—
- 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
- The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
- 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.
- 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.]
Rule 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.
Specific Instructions to fill the eForm INC-20A at Field Level
Instructions to fill the eForm are tabulated below at field level. Only important fields that require detailed instructions to be filled in eForm are explained. Self-explanatory fields are not discussed.
- Enter a Valid and ‘Active’ CIN of company having share capital and where the flag for filing commencement of business is enabled.
- Click the Pre-fill button. System will automatically display the name, address of the registered office and the email ID of the company.
- In case email ID is not prefilled automatically, then enter valid email ID.
- Whether the affairs of the Company is regulated by any sectoral regulator (like RBI in case of NBFI activities), Select the Radio button.
- Subscribers proof of payment for value of shares
- Certificate of Registration issued by the RBI (Only in case of Non-Banking Financial Companies) /from other regulators. It is mandatory to attach this document if ‘Yes’ is selected in field 3(a).
- The eForm should be digitally signed by a director of the company.
- This eform needs to be verified by a practicing professional. Enter the details of the practicing professional and attach the digital signature.
Fee for filing e-Forms or documents in case of company have share capital
Nominal Share Capital Fee applicable
Less than 1,00,000
1,00,000 to 4,99,999
5,00,000 to 24,99,999
25,00,000 to 99,99,999
1,00,00,000 or more
ii. Fee for filing e-Forms or documents in case of company not have share capital