INTRODUCTION

A Company under the Companies Act 2013(the Act) means a Company incorporated under this Act or under any previous Company Law. As per the Companies Act 2013, a Company once registered under the Act has to comply with certain mandatory provisions which are known as Post Incorporation Compliances. Filing of Form INC-20A is one of such mandatory post incorporation compliance which is a declaration for commencement of business and needs to be filed within 180 days from Incorporation.

APPLICABILITY OF FORM INC-20A

Every Company incorporated on or after 2nd November 2018 and having a share capital shall file Form INC-20A within 180 days from Incorporation with the Registrar of Companies. Non-Applicability The Company incorporated before 2nd November 2018 or a Company not having share capital and is limited by guarantee is not required to file Form INC-20A.

VARIOUS SECTIONS APPLICABLE

According to Section 10A of the Act states that 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 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,

PROCEDURE FOR FILING FORM INC-20A

The Company shall open a bank account with the Bank selected during Incorporation and the Subscribers to the Memorandum are required to deposit the full amount of Subscription in Company’s Bank Account. The Company is required to file such proof that the Subscription Amount has been deposited by the First Subscribers in the Company’s Bank Account through e form INC-20A with the Registrar of Companies. The Form shall be duly verified by the Company Secretary or a Chartered Accountant or a Cost Accountant, in practice.

FORMS TO BE FILED

The form required for filing declaration of Commencement of Business is Form INC-20A, to be filed with the Registrar of Companies within 180 days from Incorporation.

ATTACHMENTS

Bank Statement containing proof of transfer of subscription money. In case, the money has been transferred through NEFT/RTGS, the receipt containing such proof shall be attached.

PENALTY

If any default is filing Form INC-20A, the penalty shall be as follows:
Particulars Penalty
For Company Rupees 50000/-
For Directors Rupees 1000/- per day upto the day the default continues(Not exceeding Rupees 1 lakh)
  Also, 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 reasons to believe, he may initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.

TIMELINE FOR FILING FORM INC-20A

According to Section 10A of the Act, the declaration for commencement of business in Form INC-20A shall be filed within 180 days from Incorporation.

CONCLUSION

Every Private Limited Company, One person company, Public limited company and other registered companies incorporated after 02/11/2018 and a company having a share capital shall file Form INC-20A before the due date in order to avoid late fees or heavy penalty which can be levied on Company as well as its Director. Udyog Buddy has helped a number of clients by dispelling myths and helping them grow their businesses. For more information, contact us Call/Whatsapp +91 9301789019 or email at hello@udyogbuddy.com and we’ll assist you in making your business a reality without breaking the bank.