Form INC -20A Commencement of Business Certificate
MCA has introduced a new compliance in its recent ordinance, and it is called eForm INC 20A. This compliance is meant for companies that have been registered on or after 2nd November 2018 and it declares the commencement of business.
MCA has introduced a new compliance in its recent ordinance, and it is called eForm INC 20A. This compliance is meant for companies that have been registered on or after 2nd November 2018 and it declares the commencement of business.
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E<strong>Form</strong> <strong>INC</strong> <strong>20A</strong><br />
Declaration <strong>of</strong> <strong>Commencement</strong> <strong>of</strong> <strong>Business</strong>
Introduction e<strong>Form</strong> <strong>INC</strong>-<strong>20A</strong><br />
▪<br />
e<strong>Form</strong> <strong>INC</strong>-<strong>20A</strong> is filled to declare the commencement <strong>of</strong> business.<br />
▪ Introduced as Section 10A <strong>of</strong> the Companies Act 2013.<br />
https://www.registrationwala.com/form-inc-20a<br />
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What is e<strong>Form</strong> <strong>INC</strong>-<strong>20A</strong>?<br />
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▪<br />
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FORM <strong>INC</strong>-<strong>20A</strong> is a form to be filled declaring the commencement<br />
<strong>of</strong> business.<br />
It declares that the shareholders have paid the value <strong>of</strong> their initial<br />
shares as stated in MOA.<br />
This form needs to be filed within 180 days after the company<br />
registration.<br />
This form provides the company with an approval to commence<br />
business.<br />
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Who do and don’t need to File the e<strong>Form</strong><br />
<strong>INC</strong>-<strong>20A</strong>?<br />
People who do need to file FORM <strong>INC</strong> <strong>20A</strong><br />
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Companies that have been registered on or after 2 nd November<br />
2018<br />
Companies that have share capital stated in their MOA.<br />
People who don’t need to file FORM <strong>INC</strong> 22A<br />
▪ Companies that have been registered before 2 nd November 2018<br />
▪ Companies that don’t have any share capital. 4
Why Filing e<strong>Form</strong> <strong>INC</strong> <strong>20A</strong> Required?<br />
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It declares that the company is ready for business.<br />
It ensures that the shareholders have paid up their share in<br />
company capital.<br />
https://www.registrationwala.com/knowledge-base/business-registrations/privatelimited-company/certificate-<strong>of</strong>-commencement-<strong>of</strong>-business<br />
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What Are the Documents Required For<br />
File <strong>INC</strong>-<strong>20A</strong> Eform?<br />
The documents required to file <strong>INC</strong> <strong>20A</strong> e<strong>Form</strong> are the following:<br />
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Bank statement <strong>of</strong> the company.<br />
Digital Signature <strong>Certificate</strong> <strong>of</strong> the Director <strong>of</strong> the company.<br />
<strong>Certificate</strong> <strong>of</strong> Incorporation Number.<br />
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What If You Don’t File <strong>INC</strong> <strong>20A</strong>?<br />
If you don’t file <strong>INC</strong> <strong>20A</strong>, then there are three types <strong>of</strong> penalties that<br />
you need to watch out for:<br />
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Penalty on the company.<br />
Penalty on Directors.<br />
Company Removal.<br />
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Penalty on the Company<br />
The company has to pay INR 50,000 if the directors didn’t file the<br />
declaration.<br />
https://www.registrationwala.com/knowledge-base/business-registrations/privatelimited-company/certificate-<strong>of</strong>-commencement-<strong>of</strong>-business<br />
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Penalty on the<br />
Company<br />
The company has to pay INR<br />
50,000 if the directors didn’t file<br />
the declaration.<br />
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Penalty on Directors<br />
Directors have to pay the penalty <strong>of</strong><br />
INR 10,000/- per day with the<br />
ultimate limit <strong>of</strong> INR 1, 00, 000/-.<br />
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Final Penalty to the Company<br />
The company is going to be given some chances to file the form with<br />
the late fees. If it still does not comply, the following happens:<br />
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Company strike <strong>of</strong>f: The company name shall be removed from<br />
the registry.<br />
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THANKS!<br />
Any questions?<br />
You can find us at:<br />
▪ @Registrationwala<br />
▪ +91-8882-580-580<br />
▪ support@registrationwala.com<br />
▪ https://www.registrationwala.com/form-inc-20a<br />
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