INC-20A (Business Commencement form)
Every Company has to mandatorily file Form INC-20A within 180 days of the Incorporation of a Company.
Also you need an active current bank account in the name of the Company and the shareholders must have transferred their respective paid up capital to the Company.
Failing to file INC-20A may result in hefty penalties. So file soon!
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Introduction:
Form INC-20A is a vital filing requirement for companies incorporated after November 2, 2018, with share capital. It signifies the commencement of business operations and is mandated by Section 10A of the Companies (Amendment) Ordinance 2018. This comprehensive guide provides insights into the importance of filing Form INC-20A, its benefits, penalties for non-compliance, fees based on share capital, the filing process, and the required documents for ROC compliance.
List of Documents Required
Bank Statements
Digital Signature Certificate (DSC)
DIN of Director
How Does It Works?
Form Submission
Callback From Our Team
Final Quote And Payment
Document Submission
Filing of Forms with ROC (1Day)
Issuance of Dormancy Certificate
Benefits of Filing Form INC-20A:
Filing Form INC-20A offers several advantages for companies, including:
Avoidance of Fines and Penalties: By submitting Form INC-20A within 180 days of incorporation, companies can prevent fines and penalties that may be imposed for non-compliance, which can be up to ₹50,000/- per day for the company and ₹1,000/- per day for the directors.
Business Authentication: Filing Form INC-20A ensures the company’s inclusion in a public database, enhancing its credibility and reputation by providing transparent information to the public.
Documents Required for Filing Form INC-20A:
The following documents/attachments are required to file Form INC-20A:
- Proof of Share Capital: Statements of the company’s bank accounts demonstrating the payment of the indicated amount as per the Memorandum of Association.
- Declaration of Board Resolution: A declaration by the company director(s) in accordance with Section 10A of the Companies Act, 2013.
- Sectoral Regulator Clearance: If the company operates in sectors requiring registration or clearance from regulators like RBI or SEBI, relevant registration or clearance documents must be attached.
Process of Filing Form INC-20A:
To file Form INC-20A smoothly, follow these steps:
- Company Bank Account: Open a company bank account, providing the necessary documents such as Certificate of Incorporation, Memorandum of Association, Articles of Association, Permanent Account Number, and KYC information of the director(s).
- Collection of Capital: Collect the capital contributed by shareholders as per the Memorandum of Association.
- Deposit Capital in Company Bank Account: Deposit the collected capital into the company’s bank account and obtain a certified copy of the bank statement as proof.
- File Form INC-20A: File Form INC-20A digitally signed by the company director(s) and certified by a qualified Chartered Accountant or Cost Accountant.
Conclusion:
Filing Form INC-20A is a crucial step in ensuring compliance and commencing business operations. By adhering to the prescribed process and submitting the required documents, companies can avoid penalties, establish their eligibility for borrowing, and enhance their credibility in the public domain. For expert assistance and seamless ROC filing services for Form INC-20A, you may contact our experts at Instafiling. Our experienced professionals are dedicated to providing tailored solutions to meet your specific requirements.
FAQs
Form INC-20A is filed to get the commencement of business certificate and it is a declaration by the directors that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them and that the company has filed with the Registrar a verification of its registered office.
Once the subscription money is received, you can file form INC-20A on the V-3 portal of MCA.
Form INC-20 is filed for the declaration by the directors that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them on the date of making of such declaration.
A Company incorporated after the commencement of the Companies (Amendment) Ordinance, 2[2019] and having a share capital is required to get commencement certificate.
Yes, for every company incorporated after the commencement of the Companies (Amendment) Ordinance, 2[2019] and having a share capital is required to get file INC-20A.
The government fee of INC-20A depends on the share capital of the business and varies between 200 to 600.
No, a company cannot start business without filing INC-20A.
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 reasonable cause to believe that the company is not carrying on any business or operations, then an action might be initiated for the removal of the name of the company from the register of companies.
The following forms can be filed without filing INC-20A:
INC-22: If the form is being filed for verification of registered office within 30 days of incorporation.
ADT-1: For the appointment of first auditors by board of directors.
DIR-12: For appointment or cessation in the office of directors.
Form INC-20 A should be filed within 180 (one hundred and eighty days) from the date of incorporation.
Form INC-20 A is a web based form available in V-3 portal of the MCA and the same has to be filled in web only. However, the same can be downloaded for affixing dsc and after uploading the same.
Certificate of commencement of business is required to be obtained within 180 (one hundred and eighty) days from the date of incorporation.
The following documents should be attached with the Form INC-20 A:
- Photograph of Registered Office showing external building and inside office also showing therein at least one Director/ KMP.
- Registration or approval from sectoral regulators such as RBI, SEBI etc; if applicable
Besides, the above mandatory documents, Board resolution and Bank Statement (displaying receipt of money from subscribers) can also be attached as optional attachments.
The late fees for filing INC-20 A can vary from 2 times of the normal fees to 12 times of the normal fees depending upon the period of delay.
No, INC-20 A is required to be filed only once when the subscription money is received and need not to be filed every year.
No, we cannot file INC-20 A if INC-22 for the intimation of registered office address has not been filed.
INC-20A is the declaration filed by a director with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them and that the company has filed with the Registrar a verification of its registered office.
Form INC-20 A should be filed within 180 (one hundred and eighty days) from the date of incorporation.
The form can only be filed once the subscription money as mentioned in the Memorandum of Association is received.
Form INC-20 A is mandatorily required to intimate the Registrar about the commencement of business and it serves as declaration to the effect that the subscription money has been received for initiating the business activities.
No, once the form is filed with the Registrar of Companies, the same cannot be revised.
Every company incorporated after the commencement of the Companies (Amendment) Ordinance, 2[2019] and having a share capital is required to file Form INC-20A.
Companies incorporated before 2019 and the companies which do not have any share capital are not required to file Form INC-20A.
