INC 20A | Mandatory Declaration by Companies

INC 20A  is a declaration of commencement of business that every company must file if the company’s date of incorporation falls on or after 2nd Nov 2018. Furthermore, the company must file INC-20A within 180 days of the company’s incorporation. And a Company Secretary or a Chartered Accountant or a Cost Accountant in practice shall verify the reform.

INC 20A Applicability

It applies to

  • Companies incorporated after 2nd Nov 2018 must file Form INC 20A.
  • Companies with share capital.

 Exempt Companies

Companies are exempt if

  • Incorporated before 2nd Nov 2018.
  • Limited by Guarantee

INC-20A Due date 

INC-20A Due date is 180 days from the date of incorporation of the company.

INC 20A Fees

i.Fee for filing e-Forms or documents in case of the company has a share capital

Nominal Share CapitalFee Applicable
Less than 1,00,000Rs 200
1,00,000 to 4,99,999Rs 300
5,00,000 to 24,99,999Rs 400
25,00,000 to 99,99,999Rs 500
1,00,00,000 or moreRs 600
ii. Fee for filing e-Forms or documents in case of a company not have share capital

ii. Fee for filing e-Forms or documents in case of a company not have share capital

Fee applicable
Rs 200

Consequences if INC-20A not filed?

  • A company cannot commence its business.
  • Registrar may initiate action for the removal of the name of the company from the register of companies.
  • A company cannot borrow funds.

Penalty if INC-20A not filed?

The company is liable to a penalty of fifty thousand rupees. And every officer who is in default liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding one lakh rupees.

Late Fees

Period of delaysFees
Up to 30 days2 times of normal fees
More than 30 days and up to 60 days4 times of normal fees
More than 60 days and up to 90 days6 times of normal fees
More than 90 days and up to 180 days10 times of normal fees
More than 180 days12 times of normal fees

How to file INC 20A?

(1)Enter a Valid and ‘Active’ CIN of the company having a share capital

(2)Click the Pre-fill button. The system will automatically display the name, address of the registered office, and the company’s email ID.

INC-20A form Filing

(3)Whether the affairs of the Company is regulated by any sectoral regulator (like RBI in case of NBFI activities)

(a)If you select the option Yes, then you will see the options IRDA, RBI, SEBI or Others

(b)Select the option applicable to you.

(c)Specify the letter-number/registration number and date of approval/registration.

Company regulated by sectoral regulators

Attachments for INC-20A

  • Subscribers proof of payment for the value of shares

You can attach the Companies Bank Account Statement with credit entries for receipt of subscription money from subscribers. This serves as Subscribers proof of payment for the value of shares.

  • Certificate of Registration issued by the RBI (Only in Non-Banking Financial Companies) /from other regulators.
INC-20A Attachments

Declaration

1.Enter the board resolution’s serial number and date, authorising the signatory to sign and submit the form.

INC-20A Declaration

Board Resolution for INC-20A

(IN COMPANY LETTERHEAD)

EXTRACT OF THE RESOLUTION PASSED IN THE MEETING OF THE BOARD OF  DIRECTORS OF ABC PRIVATE LIMITED HELD ON TUESDAY, THE 1ST DEC 2020 AT 11.00 AM AT OFFICE OF THE COMPANY AT ************* (enter the address of the company)

BOARD RESOLUTION FOR INC 20A

RESOLVED THAT approval of the Board be and is hereby accorded to severally authorise the (Designation of authorised person) to digitally sign and file the form INC 20A as per the requirements of the Companies Act 2013.

  “RESOLVED FURTHER THAT (enter authorised person name), (Designation of authorised person) of the company, be and is hereby authorised and shall always be deemed to have been authorised to undertake all such acts and deeds, including but not limited to signing of Application, Forms, Resolutions, Deeds etc. in this regard and also issue of power of attorney in favour of any other person enabling such other person to appear before the various authorities under the aforesaid law in the matters of registration and the matters incidental thereto. ”

CERTIFIED TRUE COPY

FOR ABC PRIVATE LIMITED

(Enter Director Name)

******************************

MANAGING DIRECTOR

(Enter Director Name)

******************************

WHOLE-TIME DIRECTOR

DATE: 01/12/2020

PLACE : *********

 

2.Digital Signature

The Director of the company must digitally sign the form.

3.Certificate from Practicing Professional

A practising professional must certify the eform by providing details of the practising professional and attaching his digital signature.

4.Pre-Scrutiny

Click on Check Form. If any fields are incomplete in the form, it will show an error message. If you do not get any error messages, then click on Pre-scrutiny. You must get the message Pre-scrutiny Successful.

5. Once Pre-Scrutiny is successful; your e-form is ready to upload.

6.MCA Upload

Login to the MCA website. Then Go to E form upload and upload the eform.

7.SRN generation

After uploading successfully, SRN generates. Take note of the SRN.

8.Fee Payment

Click on Pay later / Pay Now option to pay the government fees.

Download INC-20A pdf

 

Section 10(1)(a) Extract

(1) A company incorporated after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.

(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to
a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.

(3) Where no declaration has been filed with the Registrar under clause (a) of sub-section

(1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section

(2) initiate action to remove the name of the company from the register of companies under Chapter XVIII.]

Rule 23A: Declaration at the time of commencement of business.-

The declaration under section 10A by a director shall be in Form No, INC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014, and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant. in practice: Provided that in the case of a company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.

 

INC 20A Faqs

1.What is INC 20A Form?

INC 20A is an eform for declaration for commencement of business. Every company incorporated after 2nd Nov 2018 must submit the form INC-20A.

2.Who is required to file INC 20A?

Directors of companies incorporated after 2nd Nov 2018 must file INC 20A.

3.How do I file condonation of delay for Inc-20A?

Currently, there is no foolproof process to file condonation of delay for INC-20A. So, we must wait for MCA clarification concerning this matter.

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