Late filing of INC 20A

INC 20A Commencement of Business Certificate Introduction Form INC 20A is an important filing under the Companies Act, 2013. It serves as a declaration by newly incorporated companies to signify the commencement of their business operations. This form significantly ensures legal compliance and demonstrates a company's readiness to conduct business activities. What is INC 20A? and who should file INC 20A? Form INC 20A is a declaration form that newly incorporated companies must file to signify their business operations' commencement. The purpose of Form INC 20A is to ensure legal compliance and demonstrate that the company is ready to conduct its business activities. All companies, except Non-Profit Organizations (NPOs) and Section 8 companies, are required to file Form INC 20A within a specific timeframe from the date of incorporation. This form is crucial for establishing the company's legality, credibility, and adherence to the Companies Act. What is the time limit for obtaining a Commencement of Business Certificate? The commencement of business certificate must be obtained within 180 days of incorporation of the company. Know more on INC 20A Filing. What are the consequences of late filing of INC 20A? The late filing of Form INC 20A can have several consequences for a company. These consequences may include: Penalties and fines: The Registrar of Companies (RoC) can impose penalties and fines on companies that fail to file Form INC 20A within the prescribed timeframe. The amount of the penalty can vary based on the duration of the delay. Non-compliance status: Late filing of Form INC 20A can result in the company being considered non-compliant with the Companies Act, 2013. This non-compliance status can negatively impact the company's reputation and may lead to further legal consequences. Restriction on business operations: In some cases, the RoC may impose restrictions on the company's business operations until Form INC 20A is filed. This can hinder the company's ability to engage in certain activities, such as entering into contracts or opening bank accounts. Invalidation of benefits: Delayed filing of Form INC 20A can result in the invalidation of certain benefits or privileges that a company is entitled to under the law. This may include the company's ability to avail tax benefits, apply for government contracts, or access certain financial services. It is important for companies to adhere to the prescribed timeline and ensure the timely filing of Form INC 20A to avoid these potential consequences and maintain compliance with the Companies Act. What is the Government fee for obtaining Commencement of Business Certificate? The government fee for obtaining Commencement of Business Certificate is as follows-: Nominal Share Capital Fee applicable Less than 1,00,000 Rupees 200 1,00,000 to 4,99,999 Rupees 300 5,00,000 to 24,99,999 Rupees 400 25,00,000 to 99,99,999 Rupees 500 1,00,00,000 or more Rupees 600 If a company does not have share capital, a fee of Rs.200 would be applicable. Further, in case of late filing of application for Commencement of Business certificate, additional or higher Government fee as mentioned below would be applicable on top of the penalty / late fees for INC 20A payable. Period of delay All forms Up to 30 days 2 times of normal fees More than 30 days and up to 60 days 4 times of normal fees More than 60 days and up to 90 days 6 times of 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 Suggested read: E-form INC 20A- Commencement of Business certificate Conclusion In conclusion, Form INC 20A is an important filing requirement for newly incorporated companies in India. Failing to file this form within the specified timeframe can lead to penalties, non-compliance status, restrictions on business operations, and invalidation of benefits. It is essential for companies to prioritize timely filing of Form INC 20A to maintain legal compliance, establish credibility, and ensure a smooth transition into their business operations. By adhering to the prescribed guidelines, companies can avoid potential consequences and demonstrate their commitment to fulfilling their obligations under the Companies Act, 2013.

Late filing of INC 20A

INC 20A Commencement of Business Certificate late fees explained