INC 20A: The Form For commencement of Business
Once The Company is incorporated, various compliances are attached with it whether event-based or Annual based (Annual Compliances).
The Immediate compliance which a Company needs to do is introduced through The Companies (Amendment) Ordinance, 2018.
Any Company Incorporated after 2nd November 2018 having share capital needs to file the Form within 180 days from the Date of Incorporation of the Company.
What it is For:
The Form needs to be filed by every company having share capital to commence the Business.
The Form needs to be filed within 180 days from the date of Incorporation of the Company.
Who can file the Form:
The Form needs to be filed by the Directors, at the same time the Form needs to be certified by Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
What is the Purpose of filing Form INC 20A:
The Form needs to be filed to provide the proof of Deposit of Subscribed Capital which the First Subscribers have agreed to pay at the time of Incorporation.
Consequences of Non Filing:
On non-Filing the Form, if Registrar has a cause to believe that the Company is not carrying any business then the Registrar may initiate the action for the removal of Company Name.
As the name suggests itself, it cannot commence the Business and The Company cannot borrow any money.
Attachments to the Form:
The proof needs to be attached for the deposit of Subscription Amount by subscribers.
Where the Company is regulated by RBI, an additional attachment of Certificate of Registration by RBI is also required.
Penalty For Non Filing of Form INC 20A:
The Penalty will be attracted when Company is not able to file the Form within time period.
The Company is liable to pay Rs.50,000/-
And For non-filing , very officer who is in default is liable to pay Rs.1000/- per day ,up to maximum Rs.1,00,000/-
Fees structure of Form:
|Nominal Share Capital
|Less than 1,00,000
|1,00,000 to 4,99,999
|5,00,000 to 24,99,999
|25,00,000 to 99,99,999
|1,00,00,000 or more
|Nominal Share Capital
|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
Once the Company is incorporated , the process of Bank Account opening need to be done on priority basis, after which the Subscribers to the Memorandum should deposit the respective amount promised to be paid at the time of Incorporation. After which Company should File the Form INC 20A on early basis as even if 180 days are provided as time limit , its necessary to file it on early basis as Company cannot commence its Business or borrow any money till the time its filed.
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