INC-20A Form of MCA


0

New section inserted after section 10 of the companies act 2013, section 10A says a company incorporated on or after 02//11/2018, having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the directors within 180 days from date of incorporation of company in INC form 20A (notified on 26/01/2019), with the Registrar of Companies that ‘every subscriber to the MOA has paid the value of the shares agreed to be taken by him on the date of making of such declaration” and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant, in practice:

Provided that in the case of a company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.

Summary

Is it mandatory to file form INC 20A?

Yes, it is mandatory to obtain certificate of Commencement of Business by filing form 20A

Who shall file “Form INC 20A”?
  • all the companies incorporated on or after 02//11/2018
  • and having a share capital to file form 20A
Who shall not file “Form INC 20A”?
  • Companies incorporated before 02//11/2018
  • and limited by guarantee not having share capital
What is the due date of filing form INC 20A ?

Due date for the first time filing of “Form 20A”

If Company incorporated on or after 02//11/2018 the INC-20A From to be filled within 180 days from the date of incorporation.

What details are required to be furnished in “Form 20A”?

Declaration that all the subscribers to the MOA have remitted the total value of the shares agreed to be taken by them  in the Companies Bank Account.

What are the attachments to the form 20A?

Subscribers proof of payment for value of shares

One has to attach the Bank Account statement of Company having all credit entries for receipt of subscription money received from all subscribers to MOA.

What if Bank Statement is not available?

valid payment proof like NEFT / IMPS receipts.

What are the Penalty if not Filed the form INC- 20?
  • Company liable to pay Rs. 50,000
  • every officer who is in default liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-.
What are the Consequence if form is not Filed within time?
  • Registrar may initiate action for the removal of the name of Company
  • Company cannot borrow money
  • Company cannot start business

Extract of Section 10A of Companies Act, 2013:

Section 10A:

(1) A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless2

(b)   The company has filed with the Registrar a verification of its registered office as provided in sub–section (2) of section 12.

(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.

(3) 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, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.]

Extract of Rule 23A of the Companies (Incorporation) Rules, 2014

Rule 23A: Declaration at the time of commencement of business‑

The declaration under section 10A by a director shall be in Form No, 1NC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a company Secretary or a chartered Accountant or a cost Accountant. in practice: Provided that in the case of a company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.


Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *