In the case of a form filed more than 180 days ago, the company must pay an additional fee and OCR has the authority to impose a penalty of at least 50,000. Companies incorporated on or after 02.11.2018 must submit the form within 180 days of incorporation. All companies incorporated from 02.11.2018 with share capital must file Form 20A. The INC 20A start-up form can be downloaded from the official MCA website. Other company compliance regulations include filing Form ADT 1, DIR kYC 3, etc. Yes, Ebizfiling offers annual compliance secretariat services that you can contact our expert for more information. If the company files Form INC-20A within 360 days, it can be protected from severe penalties, i.e. Rs 50,000 for the company and for the directors. 1000 per day of failure up to a maximum of Rs.1 lakh. INC-20A is a business start-up form. Under the new section 10A(1)(a) of the Companies Act 2013 and Rule 23A of the Companies (Incorporation) Rule 2014, it is mandatory for a director of a public company to file a Form INC 20A with the Registrar of Companies (RoC).
Note: Due to the COVID-19 outbreak, MCA, with General Circular No. 11/2020, has extended the deadline for submitting the form to 360 days for established companies from January 2020 to September 2020. Any company required to file Form 20A must file it within 180 days of its incorporation. Reason/logic for the reintroduction of the new electronic form INC-20A According to the MCA notice dated December 18, 2018, any company that exists as of 2. In November 2018, submit electronic form INC-20A within 180 days of the date of incorporation, and this form must be reviewed by the corporate secretary, cost accountant and approved committee. Before submitting the form to the RoC, you will need a current CA, CS or cost accountant. Under the new article inserted after article 10 of the Companies Act 2013, article 10A stipulates that a company incorporated on or after 02.11.2018 and having share capital must not commence business activities or exercise credit powers unless the directors file a declaration within 180 days of the date of incorporation of the company on Form 20A (announced on 26.01.2019). with the ROC that “each subscriber of the MOA has paid the value of the shares agreed by him at the time of filing this declaration” and the content of said form are verified by a secretary of the company or an auditor or a cost accountant, in practice: If the submission of the form is not made on time, The following consequences occur: Download the form. You can download the form with or without an instruction package. Yes, it is mandatory to obtain a certificate of commencement of business by completing Form 20A. All company information is made available in a public database.
This feature makes it easier to authenticate the company`s existence, which ultimately helps to improve the company`s credibility. You can complete Form INC-20A online. The electronic form can be viewed and downloaded from the MCA website. You can access it from here: Under Article 10A of the Companies Act 2013, a company incorporated with share capital from 02.11.2018 may not commence business activities or exercise borrowing powers unless the directors file a declaration with the Commercial Register within 180 days of the date of incorporation of the company on Form INC 20A (advertised) on 26.01.2019). that “each subscriber to the Memorandum of Understanding has paid the value of the agreed shares”. Add the Director and Professional Certifier DSC to the form. The electronic form must be digitally signed by the director or secretary of the corporation duly authorized by the board of directors or, if the corporation has not appointed a secretary, by the secretary of the corporation practising on a full-time basis. Enter the membership number or fiscal PAN if the person digitally signing the electronic form is a secretary. Enter the certificate of practice number in case the person digitally signing the electronic form is a corporate secretary (full-time practice) and also indicate whether they are a partner After completing the form, click Review. The system performs form-level validation. The deadline to submit the form is 180 days from the date of incorporation.
Additional fee (if the form is not submitted within the allotted time) What are the consequences if the electronic form INC-20A is submitted for more than 180 days? The documents required to file Form INC-20A are as follows: Companies that are not required to file Form INC-20A? If the verification form is successful, click Pre-verification. Each corporation must file Form INC-20A within 180 days of the date of commencement of operations. A certificate of commencement of activity must be obtained within 180 days of the date of incorporation and an electronic form must be submitted to the relevant ROC (Registrar Of Companies). A declaration under Section 10A of the Directors must be made in the form of a resolution of the Board of Directors in electronic form itself. In addition, the electronic form must be accompanied by proof of deposit of the paid-up share capital by the subscribers. If a company pursues objectives that require registration or approval by industry regulators such as the Reserve Bank of India and the Securities and Exchange Board of India, etc., it must obtain such registration or approval with the attached statement. The electronic form must be verified and certified by a practicing professional before being submitted to the ROC (Registrar Of Companies). 9. What are the consequences if the form is not submitted on time? The corporation cannot do business or exercise credit powers unless the director has filed the form. It must be reviewed in practice by a chartered accountant, company secretary or cost accountant before being submitted to the RoC.
The declaration must demonstrate that each subscriber to the memorandum has paid the value of his shares on the date of the declaration. Failure to file Form INC-20A may result in the removal of the corporation`s name by the Registrar (OCR). In summary, this form is simply a statement by the Company to the relevant ROC that the Company has received the subscription money from shareholders and has obtained the necessary approvals, i.e. RBI, SEBI, if applicable, and that the Company has officially commenced operations. The declaration of commencement of operations is not a new concept, it was already included in the Companies Act of 1956. Only listed companies were required to submit a declaration for commencement of operations in electronic form INC-21 (pre-commencement of trading) form, and private companies could commence operations without complying.