FORM INC-20A is basically the commencement of business certificate for those companies which are carrying some share capital. Company incorporated on or after 02/11/2018, having share capital shall not commence its business unless a declaration is filed by the directors within 180 days from date of incorporation of company in FORM INC-20A and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant, in practice:
FORM INC-20A- Declaration for Commencement of Business
INC-20A is applicable on all the companies which are incorporated on or after 2nd November 2018 and having a share capital. The Ministry of Corporate Affairs has renewed the concept of commencement of business certificate.
Companies which are incorporated before 2nd November 2018 are not eligible to file INC-20A e-form. Also the companies which are limited by guarantee and not having share capital shall not file Form INC-20A.
It is compulsory to have certificate of Commencement of business by filing form 20A.
What are the requirements which have to be furnished in FORM INC-20A?
Declaration that all the subscribers to the Memorandum Of Association have address the total value of the shares agreed to be taken by them in the Companies Bank Account.
Attachments which have to be attached in FORM INC-20A :
Subscribers proof of payment for value of shares: One has to attach the Bank Account statement of Company having all credit transactions for receipt of subscription money received from all subscribers.
If bank statement is not available then you can attach a valid payment proof like NEFT / IMPS receipts.
What are the Consequences if FORM INC-20A is not Filed within time?
Firstly the Registrar may initiate action for the removal of the name of Company
Company cannot borrow money from anywhere
- Company cannot start business
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