The Companies (Amendment) Ordinance,2018 requires a company registered on or after 2nd November,2018 to file a declaration of commencement of Business in Form INC 20A on the MCA website. This was done with the objective of eliminating shell companies and enhance corporate compliance.
Applicability
Form INC 20A is applicable to all the companies incorporated on or after 2nd November, 2018.
Time period for filing
Form INC 20A must be filed within 180 days of incorporation of the company.
Documents Required
Following Documents are required along with Form 20A:-
1) A proof of payment of paid up capital by the subscribers of the Company
2) A declaration by the board of directors under section 10A (Copy of Board Resolution)
3) Approval from the Sectoral Regulator (for e.g. RBI, IRDA, etc) if applicable.
4) A certificate from Practicing Chartered Accountant/Company Secretary/Cost Accountant) certifying the payment of share capital.
Consequences of not filing INC 20A
- A penalty of flat Rs. 50,000/- shall be levied on the company in default.
- Every officer in default will be liable to a penalty of Rs.1,000 per day for each day during which such default continues subject to maximum penalty of Rs.1,00,000/-
- The name of the company in default is liable to be struck of by the Registrar from the Register of Companies.
Fees for filing the form
For Company having share Capital :-
| Nominal Share Capital | Applicable Fees in (Rs.) |
| Where share capital is less than 1,00,000 | 200 |
| 1,00,000 or above but not exceeding 4,99,999 | 300 |
| 5,00,000 or above but not exceeding 24,99,999 | 400 |
| 25,00,000 or above but not exceeding 99,99,999 | 500 |
| 1,00,00,000 or above | 600 |
For Company no having share capital the Fees shall be Rs. 200/-
If the Form is not filed within the prescribed time limit, then the following additional fees is applicable:-
| Period of delays | Fees |
| Up to 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 |
Form INC 20A is enclosed herewith for reference
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