After your company is successfully registration, the recent Company Ordinance of 2018 has declared that you also have to file the Form INC-20A. This form declares two things:
- The commencement of business.
- The proof of paid up capital.
INC-20 A needs to be filed within 180 days after company registration in India. The purpose of this form is get approval from the MCA to commence business.
This declaration states the all the shareholders of the company have paid the values of shares as was stated in the MOA.
Who needs to file eForm INC 20A
Any company that has been registered on or after 2nd November 2018 and have a share capital should file eForm INC 20A.
Time limit to file eForm INC 20A
An incorporated company has to file eForm INC 20A has to filed within 180 days after the company registration.
Format of eForm INC 20A
I am authorized by the Board of Directors of the Company through resolution number ______ dated________ to sign this form and thereby declare that all the requirements of Companies Act, 2013 and the Company Ordinance amendment (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:
1. Whatever is stated in this form and in the attachments thereto is true, correct and complete and no information material to the subject matter of this form has been suppressed or concealed and is as per the original records maintained by the company.
2. All the required attachments have been completely and legibly attached to this form.
3. Every subscriber to the MOA has paid the value for shares agreed to be taken by him.
4. The company has filed with the registrar a verification of its registered office as provided in subsection (2) of section 12
Documents required to file eForm INC 20A
- Bank statements of the Directors and Shareholders of the company
- Digital Signature Certificate
Penalty of not filing the eForm INC 20A
If you don’t file the declaration in the prescribed format, then the penalties are as follows:
- Penalty on the company: There is a penalty of 50,000 rupees if the directors don’t file the declaration
- Penalty on directors: The defaulted directors have to pay a penalty of INR 1000 per day after the 180 day limit is passed. This can reach up to INR 1 lakhs
- Company removal: If the registrar has a reasonable cause after the 180 day of incorporation, then he can also strike off the company from the companies register.
Not filing the declaration can be a scary matter, and is a hassle. Therefore, in order to get relief from this hassle, you can get in touch with Registrationwala and we can ensure that your company is registered and your commencement declaration is filed.
For more information, you can call us @8882580580