Meaning

E-Form INC- 20A was introduced vide the Companies (Amendment) Act, 2019. E-form INC- 20A is a declaration of commencement of business that needs to be filed by the directors of the Company within 180 days from the date of incorporation of a Company with the Registrar of Companies (ROC) pursuant to Section 10A of the Companies Act, 2013 (hereinafter referred to as “the Act”) and Rule 23A of the Companies (Incorporation) Rules, 2014 (hereinafter referred to as “the Rules”). The contents of the said form shall be verified by either a Company Secretary or a Chartered Accountant or a Cost Accountant in practice.

Applicabilty of INC-20A

Every Company incorporated on or after 2nd November, 2018 and having share capital are mandatorily required to file e-form INC-20A announcing the start of its business operations. 

Purpose of Filing INC-20A

In line with section 10 A of the Act read with Rule 23 A of the said Rules, E-form INC20 A is required to be filed for the aim of declaration of commencement of business. The declaration should be filed stating that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making such declaration.

Time Limit to file INC-20A

Within 180 days from the date of incorporation of a Company with the ROC.

Documents Required for INC-20A

• Subscriber’s proof of payment for value of shares. In simple words, bank statement of Company having all credit entries for receipt of subscription money received from all subscribers to MOA.
• Photograph of Registered Office of company.
• Photograph of Registered offic eof company with inside office showing therein at least one Director/ KMP.
• .If the Company pursues objectives that need registration or approval from any sectoral regulator, such as the Reserve Bank of India or the Securities and Exchange Board of India, etc., then it shall obtain such registration or approval and the same needs to be attached with the declaration.

Consequences of Non-Filing of INC-20A

• The Company won’t be able to commence any business activities nor exercise any borrowing powers.
• Registrar of Companies may initiate action for the removal of the name of the Company from the Register of Companies.

Fee for filing E-Form INC-20A

Additional Fee (in case the form is not filed within due dates)

Penalties for Non-filing of INC-20A

• Company shall be liable to a penalty of Rs. 50000 for not filing of te Form INC-20A.
• Every officer in default shall be liable of a penalty of Rs. 1000/- per day of default upto a maximum of Rs. 1,00,000/-.

Certification for Form INC-20A

The contents of the said form shall be verified by either a Company Secretary or a Chartered Accountant or a Cost Accountant in practice.