Form INC-20A is a crucial compliance requirement for companies incorporated in India under the Companies Act, 2013. This form pertains to the declaration of the commencement of business and involves specific procedures, time limits, and eligibility criteria.

Legal Foundation

Form INC-20A is governed by Section 10A of the Companies Act, 2013, read with Rule 23A of the Companies (Incorporation) Rules, 2014. According to this ordinance, every company incorporated on or after November 2, 2018, and having share capital, is required to file e-form INC-20A with their respective Registrar of Companies within 180 days from the date of incorporation.

Eligibility

The companies required to file Form INC-20A are:

1. Companies incorporated on or after November 2, 2018.
2. Companies incorporated after November 2, 2018, having a share capital.

Filing Procedure

The process to file Form INC-20A is as follows:

1. Visit the MCA portal at mca.gov.in.
2. Log in using your ID and password.
3. Navigate to MCA Services > Company E-filing > Informational Services > INC-20A – Declaration for commencement of business.
4. Fill in the relevant details and attach the necessary documents.
5. Pay the relevant fees and submit.

Required Attachments

1. Bank statement showing the subscription amount received by the company.
2. Photograph of the Registered Office showing the external building and inside office, including at least one Director/KMP.

Fees

The fees for filing Form INC-20A vary based on the company’s nominal share capital. Additional fees apply in case of delays.

Penalties

Failure to file Form INC-20A within the prescribed time can result in penalties:

• The company may be liable to a penalty of fifty thousand rupees.
• Every officer in default may be liable to a penalty of one thousand rupees for each day of default, up to a maximum of one lakh rupees.

Consequences of Non-Compliance

If Form INC-20A is not filed within the stipulated time, the company cannot borrow money or start business operations. The Registrar may also initiate action to remove the company’s name from the Register of Companies.