After the Company Incorporation In India, it is mandatory for the company to intimate the registrar about the commencement of the business. As per Section 10A of the Companies Act, 2013, every company that is incorporated on or after 2nd November 2018 shall declare the commencement of the business by filing Form INC-20A with the registrar of companies.
e-Form INC-20A Applicability
Form INC-20A i.e., declaration for commencement of business by the company shall be filed by the company within 180 days of incorporation. As per Section 10A of the Companies Act, 2013, a company that is incorporated after the commencement of the Companies (Amendment) Act, 2019 and has a share capital shall not commence any business or exercise its borrowing powers unless the following conditions are satisfied:
- A director of the company files a declaration with the registrar within 180 days of incorporation of the company in Form INC-20A that every subscriber to the memorandum has paid the value of shares agreed to be undertaken by him on the date of filing of the said form and
- The company has filed a verification of its office with the registrar in Form INC-22 as provided in Section 12(2).
Non-applicability of Form 20A
The following companies are not required to file Form INC-20A:
- Companies that are incorporated before 2nd November 2018
Penalty for Delay in Filing Form INC-20A
In case the company fails to file Form INC-20A with the registrar, then a penalty of Rs. 50,000 shall be imposed on the company. Further, every officer of the company who is in default shall be liable to a penalty of Rs. 1000 per day during which the default continues subject to a maximum penalty of Rs. 1 lakh.
Further, if the declaration is not filed within 180 days after the incorporation of the company and the registrar has reasonable cause to believe that the company is not carrying on any operations or business, then he may initiate the proceedings for the removal of the name of the company from the register of the company under Chapter XVIII.
Declarations and Attachments
While filing Form INC-20A, the company shall also file certain declarations and attachments. These include:
- In case the company is required to undertake an approval from any sectoral regulator for pursuing its objects, then the approval from such sectoral regulator shall also be obtained.
- Proof of receipt of the subscription amount in the company’s bank account shall be submitted. If the payment is received in cash, then the cash ledger shall be submitted.
- The e-Form shall be verified by a chartered accountant, company secretary or a cost accountant in practice.
Pre-requisites for Filing Form INC-20A
Before filing Form INC-20A, the following points shall be ensured:
- The company shall open its bank account for conducting its financial transactions.
The company shall obtain the registrations and approval of all the sectoral regulators as may be applicable.
Fees for Filing Form INC-20A
Following is the fees for filing of Form INC-20A:
|
S. No. |
Nominal Share Capital |
Fees Applicable |
|
Companies having nominal share capital less than Rs. 1,00,000 |
200 |
|
|
Rs. 1,00,000 or above but less than Rs. 5,00,000 |
300 |
|
|
Rs. 5,00,000 or above but less than Rs. 25,00,000 |
400 |
|
|
Rs. 25,00,000 or above but less than Rs. 1,00,00,000 |
500 |
|
|
Rs. 1,00,00,000 or above |
600 |
Fee for filing Form INC-20A for the companies having no capital is Rs.200. Additional fees shall be levied in case the form is not filed within the due date. The following shall be the additional fees for delay in filing of Form INC-20A:
|
Sr. No. |
Period of Delay |
Additional Fees Applicable |
|
Up to 30 days |
2 times of the nominal fees |
|
|
Above 30 days but up to 60 days |
4 times of the nominal fees |
|
|
Above 60 days but up to 90 days |
6 times of the nominal fees |
|
|
Above 90 days but up to 180 days |
10 times of the nominal fees |
|
|
Above 180 days |
12 times of the nominal fees |
Have you filed your Form INC-20A after your company registration? If not, then contact your eAuditor Office for filing your Form INC-20A
