Commencement of Business 20A
Get Commencement filed in Rs. 800/-
Commencement of Business 20A
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 an accountant (CA) or Company Secretary (CS) or a price Accountant in practice.
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.
- Company strike-off: 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.
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.
Process to File E-Form INC-20A
There are two (2) situations, stated below:-
- Filing of form within 100 and eighty (180) days: during this case file the E-form 20A with the fees depending upon the paid up Share capital of the corporate along side a symbol of deposit of the paid-up share capital by the subscribers has been paid to the corporate .
- Filing of form after 100 and eighty (180) days: during this case, we’d like to connect an application for condonation of delay for Form INC-20A with brief reasons for delay and other important merits of case. then Follow up with the concerned Registrar is required until the shape is approved by the Registrar.
Documents for Filing of INC-20A (Declaration to Commence Business
Frequently Asked Questions
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).