All About Form INC-20A-Declaration for commencement of business

As per Provisions of Companies Act 2013, A company incorporated on or after 02//11/2018, having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the directors within 180 days from date of incorporation of company in INC form 20A.

FAQ

#1 ♦ Is it mandatory to file form INC 20A?

Ans:- Yes, it is mandatory to obtain certificate of Commencement of Business by filing form 20A

#2♦ Who shall file “Form INC 20A”?

Ans:-

  • all the companies incorporated on or after 02//11/2018
  • and having a share capital to file form 20A

#3♦ Who shall not file “Form INC 20A”?

Ans:-

  • Companies incorporated before 02//11/2018
  • and limited by guarantee not having share capital

#4♦ What is the due date of filing form INC 20A ?

Ans:-

Due date for the first time filing of “Form 20A”

Particular Due Date
Company incorporated on or after 02//11/2018 From the date of incorporation within 180 days

#5♦ What details are required to be furnished in “Form 20A”?

Ans:-

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.

#6♦ What are the attachments to the form 20A?

Ans:-

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.

#7♦ What if Bank Statement is not available?

Ans:-
valid payment proof like NEFT / IMPS receipts.

#8♦ What are the Penalty if not Filed the form INC- 20?

Ans:-

  • 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/-.

#9♦ What are the Consequence if form is not Filed within time?

Ans:-

  • Registrar may initiate action for the removal of the name of Company
  • Company cannot borrow money
  • Company cannot start business

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