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E form INC 20A

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What is Commencement of Business Certificate and form INC 20A?

All you need to know

The newly rolled out and most discussed among the corporate is Form INC-20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.

Form INC 20 A(Commencement of Business Certificate):

Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.

On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from  the date of  incorporation of the company.

Government Fees for Form INC 20 A (Commencement of Business Certificate):

Nominal Share Capital

Applicable Fees in (Rs.)

Where share capital is less than 1,00,000

200

1,00,000 or above but not exceeding 4,99,999

300

5,00,000 or above but not exceeding 24,99,999

400

25,00,000 or above but not exceeding 99,99,999

500

1,00,00,000 or above

600

 

Form INC 20 A late filing fees (Commencement of Business Certificate):

Period of delay

late fees

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

 

Penalty for Form INC 20 A for Commencement of Business:

  • Company will be liable to pay Rs. 50,000 penalty for not filing the Form INC 20A
  • Every officer who is in default is liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-
  • Registrar may initiate action for the removal of the name of Company / Strike off company name

 

Consequences of non-filing of Form-INC-20A may create hindrance for companies to start their business and also while borrowing of money. The company would be liable to a Penalty for late filing the Form INC-20A if it exceeds 180 days of from the date of incorporation Read more here on late filing fees for INC 20A.

 

Suggested Read: Secretarial Compliances Applicable for a Private Limited Company and cost of compliance

 

EbizFiling.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, Secretarial compliance Services, Tax Consultancy Services, and management consultancy services to clients in India and abroad.  Filing of E-Form INC-20A is easy, seamless, cheapest and quickest with EbizFiling.com! Get in touch with Ebizfiling Compliance Manager to understand what is E – Form INC-20A filing process and whether you need to file E – Form INC-20A. You may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.

INC 20A Filing Fees

Choose Your Package

ESSENTIAL

1299/-

(All Inclusive)

  • Form 20A Filing for capital upto INR 1 Lakh

ENHANCED

1999/-

(All Inclusive)

  • Form 20A Filing for capital upto INR 25 Lakh

ULTIMATE

2499/-

(All Inclusive)

  • Form 20A Filing for capital upto INR 50 Lakh

Benefits of filing Form 20A

Points to make your decision easy

Fund raising

On filing the E-Form INC-20A within 180 days, the company will then be eligible to exercise the borrowing powers. Non filing of which may stop the company from borrowing the money.

No penalties

If the company files the form INC-20A within 180 days, the company can be safeguarded from incurring heavy penalties i.e, Rs. 50,000/- for company and for directors Rs.1000 per day of default up to a maximum of Rs.1 lakh.

Builds Credibility

All the informations relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility

Documents required for obtaining Commencement of Business Certificate

Quick Checklist

  • Subscribers proof of payment for value of shares i.e. bank statement of Subscribers
  • Certificate of Incorporation
  • Digital Signature of Director
FAQs_Ebizfiling

FAQs On E-Form INC-20A

Get answers to all your queries

  • What is form MCA 20A and who should file “Form INC 20A”?

    All the companies incorporated on or after 02/11/2018 and having a share capital to file form 20A.

  • What details are required to be furnished in this form?

    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.

  • Form where can i download INC form 20A?

    Commencement form INC 20A can be downloaded from MCA’s offcial website.

  • What is the due date of form INC 20A filing for Commencement of Business?

    Company incorporated on or after 02/11/2018 should file the form within 180 days of incorporation.

  • What if Bank Statement is not available?

    Valid payment proof like NEFT / IMPS receipts need to be attached.

  • What are the Consequence if form is not filed within time?

    1. Registrar may initiate action for the removal of the name of Company.
    2. Company cannot borrow money.
    3. Company cannot start business.
  • What are the other compliances, that a company needs to fulfil? do your Company have any yearly compliance packages?

    The other compliances of the company includes filing of form ADT 1, DIR kYC 3 etc. Yes, Ebizfiling provides Yearly Secretarial Compliance Services you may get in touch with our expert for more information.

  • Still, have confusion?

    Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@ebizfiling.com or call us @+91 9643 203 209.

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