E-Form INC-20A (Commencement of Business Certificate)

The Ministry of Corporate Affairs is keen to improve Corporate Governance and Compliance on the Company’s part after the successful rollout of DIR-3KYC for Directors/DIN holders. It has introduced the E-Form (INC-20A) Commencement of Business Certificate under the Companies (Amendment) Ordinance 2018.

Everything you need to know about the Commencement of Business Certificate- INC-20A

Occurrence of Events	Time Lines
Who is required to file Form INC-20A	Companies registered after the commencement of the Companies (Amendment) Ordinance, 2018 in India, and having a share capital is required to file for the commencement of business certificate before commencing any business or exercising any borrowing powers. Any company incorporated after 2nd November 2018 would be required to get a Commencement of Business Certificate
Time Limit for Obtaining Commencement of Business Certificate	The commencement of business certificate must be obtained within 180 days of incorporation of the company.
Declaration by every Director	While filing the application for commencement, the Directors of the company must declare that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him/her on the date of the making of such declaration.
Company Strike-Off	Also, after 180 days of incorporation, if the Registrar has a reasonable cause to believe that the company is not carrying on any business or operations, he/she may initiate action for the removal of the name of the company from the register of companies (i.e. Company Strike-Off)
Compulsory Document Required	Subscribers proof of payment for the value of shares i.e, Bank statement of the company having all credit entries, for documenting the receipt of subscription money received from all subscribers to MOA.
Consequences if Form is not filed within the time	If the form is not filled within the given time, the company cannot start its business and cannot Borrow Money.
Certification	The certification needs to be availed by a Practicing Professional (i.e. Chartered accountant, Cost accountant, or Company secretary.)

Additional Fees in case of late filing for E-Form INC-20A

Period of delays	Fees scheduled with a due date
Up to 30 days	2 times of normal fees
More than 30 days and up to 60 days	4 times normal fees
More than 60 days and up to 90 days	6 times 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

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Categories: Articles - Company Law

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Vaishali Joshi: Vaishali Joshi is a young and dynamic person with a passion for legal services. She is Company Secretary by profession and is working at Ebizfiling India Private Limited as a Compliance Team Leader from the last 3 Years. Her interest in the legal profession allures her to opt for a career with Ebizfiling. She has dealt with more than 4000+ clients with her expert knowledge in Compliance matters.