Commencement of Business 20A
Get Commencement filed in Rs. 800/-
As per the businesses (Amendment) Ordinance 2018, there’s a requirement for all the businesses registered on or after 2 November 2018 to file a certificate of commencement of business. Form 20A may be a declaration filed by the administrators within 180 days of the date of incorporation of the corporate . this is often one among the foremost important compliances to follow because the penalties for non-filing is extremely high.
Form 20A may be a declaration that must be filed by the administrators of the corporate at the time of the commencement of the business. It should be verified by a accountant (CA) or Company Secretary (CS) or a price Accountant in practice.
Companies which aren't required to file Form 20A
The following companies aren’t required to file form 20A:
Companies incorporated before 2 November 2018 ( i.e before the commencement of the businesses ( Amendment) Ordinance, 2018).
Companies incorporated after 2nd November 2018 without share capital.
The period of time for filing Form 20A
Every company required to file form 20A shall file an equivalent within 180 days of its incorporation.
Penalties for Default
The penalties for non-compliance are very high which has been done intentionally so on curb out the amount of shell companies incorporated. Following are the penalties for non-compliance:
Penalty to be levied on the company:
A penalty of Rs 50,000 are going to be levied on the corporate if it fails to suits the mentioned requirement.
Penalty to be levied on the officers:
Every such officer in default shall be susceptible to a penalty of Rs 1,000 per day for every day during which the default continues subject to a maximum of Rs 1,00,000.
If the Registrar has reasonable grounds to believe that the corporate isn't carrying on any business or operations even after 180 days of incorporation, the registrar may remove the name of the corporate from the Register of companies.
Documents for Filing of INC-20A (Declaration to Commence Business
Bank Stats torment Of Company Showing Capital
Digital Signature Of One Director
Professional Certification By CA/CS/CMA
File Inc-20A With Prescribed Govt Fee
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Answer: As per Companies (Amendment) Ordinance, 2018, all the businesses registered in India and having a share capital is required to get commencement of business certificate before commencing any business or exercising any borrowing powers. Since the businesses (Amendment) Ordinance 2018 was introduced in November 2nd 2018 and hence any company incorporated after 2nd November 2018 would be required to get Commencement of Business Certificate.
Answer: Any company which haven’t obtained the commencement of business certificate within 180 days of incorporation, it’ll be responsible for payment of a penalty of Rs. 50,000/-. Each of the administrators who have defaulted would be responsible for payment of a penalty of Rs. 1,000/- per day of default up to a maximum of Rs.1 lakh.
Answer: The commencement of business certificate must be obtained within 180 days of incorporation of the corporate .
Answer: Subscribers proof of payment for value of shares i.e, statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA.
Answer: Yes, the shape must be certified. (Chartered Accountant/Cost Accountant/ Company Secretary).
Answer: After 180 days of incorporation and if the corporate has not filed the shape INC – 20A, if the Registrar has reasonable cause to believe that the corporate isn’t carrying on any business or operations, he/she may initiate action for the removal of the name of the corporate from the register of companies (i.e. Company Strike-Off).