DECLARATION FOR COMMENCEMENT OF BUSINESS
eForm INC-20A
A company incorporated on or
after 02//11/2018, having share capital shall not commence its business
or exercise any borrowing powers unless a declaration is filed by the
directors within 180 days from date of incorporation of company in INC
form 20A with the Registrar of Companies that “every subscriber to the
MOA has paid the value of the shares agreed to be taken by him on the date of
making of such declaration” and the contents of the said form shall be
verified by a Company Secretary or a Chartered Accountant or a Cost Accountant,
in practice:
Provided that in the case of a
company pursuing objects requiring registration or approval from any sectorial
regulators such as the Reserve Bank of India, Securities and Exchange Board of
India, etc., the registration or approval, as the case may be from such
regulator shall also be obtained and attached with the declaration.
·
Yes, it is mandatory to obtain certificate of
Commencement of Business by filing form 20A
·
All the companies incorporated on or after
02//11/2018 and having a share capital shall file “Form INC
20A
·
Companies incorporated before 02//11/2018 and
limited by guarantee not having share capital shall not file “Form INC 20A
·
Due date of filing form INC 20A: From the date
of incorporation within 180 days
·
One has to attach the Bank Account
statement of Company having all credit entries for receipt of subscription
money received from all subscribers to MOA (As Subscribers proof of payment for
value of shares) or valid payment proof like NEFT / IMPS receipts
·
Penalty if not Filed the form INC- 20:
o Company
liable to pay Rs. 50,000
o Every
officer who is in default liable to pay Rs. 1000/- per day of default upto a
Maximum Rs. 1,00,000/-.
·
Consequence if form is not Filed within time:
o
Registrar may initiate action for the removal of
the name of Company.
o
Company cannot borrow money
o
Company cannot start business
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