E-Form

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