(DECLARATION FOR COMMENCEMENT OF BUSINESS)
The Ministry of Corporate Affairs has re-introduced the Concept of Commencement of Business Certificate, earlier this was concept was governed under the Companies Act, 1956
Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014, companies registered on or after 02 November 2018 are required to file Declaration for Commencement of Business with Registrar of Companies.
Every Company is required to file Form.INC-20A with ROC( Registrar of Companies) within 180 days of its Incorporation of Company stating that the Subscribers to Memorandum of Company has paid the Value of Share so agreed by them along with Verification of Registered Office Address of the Company.
1) Subscribers Proof of Payment for the value of shares (Bank Statement of Company having Credit Entries For Receipt of Subscription Money from Subscribers) if in Case Bank Statement is not Available then Valid Payment Proof Like NEFT/ IMPS Receipts.
2) Certificate of Registration issued by the RBI (Only in case of Non-Banking Financial Companies)/from other regulators.
E-Form 20A needs to be verified by Practicing Professional i.e CS/CA/CMA.
Fees for Filling of INC 20A:
|Nominal Share Capital||Normal Fees|
|Less than 1 Lacs||Rs 200|
|1,00,00,000 or More||Rs 600|
Fee for Filing e-Forms in case of Company does not have share capital – Rs 200.
|Period of Delays||Fees|
|Upto 30 Days||2 times of Normal Fees|
|More than 30 days and up to 60 days||4 times of normal fees|
|More than 60 days and up to 90 days||6 times of normal fees|
|More than 90 days and up to 180 days||10 times of normal fees|
|More than 180 days||12 times of normal fees|
Penalty for not obtaining Commencement of Bussiness:
|Every Officer in Default||Rs 1000 per day but maximum upto 1,00,000.|
Purpose of the Form:
Declaration prior to the commencement of business or exercising borrowing powers
Consequences if Form is not Filled within time:
· A company cannot Start its business.
· A company cannot Borrow Money.
Form 20A is in STP Mode (Auto Approved) and No Certificate will be issued by Department for approval of Form 20A.