INC 20A is a crucial form in India for companies to obtain a Commencement of Business Certificate. It verifies that the company has complied with requirements
Form INC-20A is a declaration form that needs to be filed by the directors of a company within 180 days of its incorporation. It informs the Registrar of Companies (ROC) that the company has commenced its business operations. Let’s see in detail on filing Form 20A.
Who Should Fill Form INC-20A?
The following companies are required to file Form INC-20A:
- All companies incorporated under the Companies Act, 2013, except for one-person companies (OPCs).
Companies Which Are Not Required to File Form 20a
The following companies are not required to file Form INC-20A:
- One person company (OPCs)
- Companies incorporated under the Companies Act, 1956 and which have not yet migrated to the Companies Act, 2013
- Companies that have been incorporated for the purpose of winding up or amalgamation
Documents Required for Form INC-20A
The following documents are required to be attached to Form INC-20A:
- A copy of the company’s certificate of incorporation
- A copy of the company’s memorandum and articles of association
- A copy of the company’s board resolution authorizing the filing of Form INC-20A
- A copy of the company’s bank statement showing that the minimum paid-up capital has been deposited into the company’s bank account
Where to get Form INC-20A?
Form INC-20A can be downloaded from the website of the Ministry of Corporate Affairs (MCA).
How to file Form INC-20A?
Form INC-20A can be filed online through the MCA portal. Once Form INC-20A is filed, the ROC will issue a certificate of commencement of business to the company.
Penalties for Non-Compliance
If a company fails to file Form INC-20A within the prescribed time period, it will be liable to a penalty of:
- ₹50,000 for the company
- ₹1,000 per day for each director of the company, up to a maximum of ₹1,00,000
Requirement and Procedure – Certificate of Business Commencement
A certificate of business commencement is a document issued by the ROC to a company after it has filed Form INC-20A. The certificate confirms that the company has commenced its business operations.
To obtain a certificate of PVT limited company registration for business commencement, the company must file Form INC-20A with the ROC within 180 days of its incorporation. The form must be accompanied by the required documents (listed above).
Once the ROC has processed Form INC-20A and verified the attached documents, it will issue a certificate of business commencement to the company.
Fee for filing Form 20A
The fee for filing Form INC-20A is Rs. 1,000. The fee can be paid online through the MCA portal.
Time Period for Filing Form 20a
Form INC-20A must be filed with the ROC within 180 days of the company’s incorporation.
Consequences of not filing Form INC 20A
If a company fails to file Form INC-20A within the prescribed time period, it will be liable to the penalties mentioned above. Additionally, the ROC may impose other penalties on the company, such as:
- Striking off the company’s name from the register of companies
- Disqualifying the company’s directors from holding office in any other company
Therefore, it is important for companies to file Form INC-20A within the prescribed time
period in order to avoid any penalties or other consequences.
Form 20A FAQs
Is it mandatory to file form 20A?
Yes, it is mandatory for all companies incorporated under the Companies Act, 2013 (except for one-person companies) to file Form INC-20A within 180 days of their incorporation.
What is Form INC-20A for?
Form INC-20A is a declaration that needs to be filed by the directors of a company to inform the Registrar of Companies (ROC) that the company has commenced its business operations.
What are the attachments to the form 20A?
The following documents need to be attached to Form INC-20A:
- A copy of the company registration certificate!
- A copy of the company's memorandum and articles of association
- A copy of the company's board resolution authorizing the filing of Form INC-20A
- A copy of the company's bank statement showing that the minimum paid-up capital has been deposited into the company's bank account
What is the requirement of form 20A?
Form INC-20A must be filed with the ROC within 180 days of the company's incorporation.
Who is required to make declarations under Form INC-20A?
The directors of a company are required to make declarations under Form INC-20A.
What happens if form 20A is not filled?
If a company fails to file Form INC-20A within the prescribed time period, it will be liable to the following penalties:
- ₹50,000 for the company and ₹1,000 per day for each director of the company, up to a maximum of ₹1,00,000
Additionally, the ROC may impose other penalties on the company, such as:
- Striking off the company's name from the register of companies
- Disqualifying the company's directors from holding office in any other company
Therefore, it is important for companies to file Form INC-20A within the prescribed time period in order to avoid any penalties or other consequences.
What is the difference between Form INC-20A and Form INC-22A?
Form INC-20A is a declaration that needs to be filed by the directors of a company to inform the ROC that the company has commenced its business operations. Form INC-22A is a notice that needs to be filed by a company to inform the ROC about any changes in its registered office address.
Can Form INC-20A be filed online?
Yes, Form INC-20A can be filed online through the MCA portal.
What is the fee for filing Form INC-20A?
The fee for filing Form INC-20A is ₹1,000.
What are the consequences of not filing Form INC-20A within the prescribed time period?
If a company fails to file Form INC-20A within the prescribed time period, it will be liable to the penalties mentioned above. Additionally, the ROC may impose other penalties on the company, such as striking off the company's name from the register of companies or disqualifying the company's directors from holding office in any other company.
