INC-20ASection 8 company is a special entity registered with a sole objective of charitable purpose. Unlike a trust, this is a corporate business structure that ensures the limited liability and a separate existence.
|Act||No specified Act|
|Number of members||Only 1|
|Separate Legal Entity||No|
|Statutory Audit||Not mandatory|
|Foreign Participation||Not Allowed|
Tags: file, inc-20a, accounting secretarial, compliances
What is form INC-20A ?
INC-20A is a mandatory form that is to be filed by a company incorporated on or after 02/11/2018 with MCA. It is also known as Declaration of Commencement of Business. It should be filed by the directors within 180 days from date of incorporation of a company which has share capital. Once the company receives a certificate of incorporation, the directors will file declaration certificate of commencement of business. It is mandatory to open a current account in a bank for depositing the share capital subscribed in MOA by each and every promoter.
Consequences of non-filing
The registrar may initiate action for removal of the name of the Company.
Company would not be able to start its business or borrow money.
Every officer who is in default is liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-.
Documents required for filing INC -20A
Proof of payment of subscribed capital
Bank statement/ NEFT / IMPS receipts.
Certificate of registration by RBI/ other regulators (applicable to NBFC)
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- Spare less than 10 minutes to fill our online questionnaire
- Upload required documents
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Process of filing KYC online
Day 1 - Collection, Preparation & Filing
- Collection of Basic Information
- Provide Required Documents
- Preparation and filling an online form
- Online filing with Professional Certification
- Sharing approval in an email
Explore to know about INC-20 A
Is it mandatory to file form INC 20A?
Yes, it is mandatory to file Declaration of Commencement of Business by filing form 20A; to establish that the company has received the paid up share capital amount and is eligible to start its business and borrow money in its name.
Who shall file “Form INC 20A”?
Every company that is incorporated on or after 02/11/2018 and having a share capital is required to file INC 20A
Who shall not file “Form INC 20A”?
Companies that are limited by guarantee i.e. the ones not having share capital or the ones incorporated before 02/11/2018 are not required to file it.
What is the due date of filing form INC 20A ?
The due date for filing the declaration is within 180 days from the day of company incorporation.
Is it s one-time filing ?
Yes, the declaration is a one-time mandatory filing for companies incorporated post 02/11/2018.
What is the Government fee for filing the form?
The Government fee depends on your authorized capital, however a minimum fee is Rs. 200/- for a share capital less than one lakh.
Can I do business without filing the form?
No, You cannot start the business without filing this form.
Is this a one-time process or to be done annually?
It is one-time filing compliance.
What is the consequence of not filing the form?
MCA will charge penalty to the company as well as to its directors who commence the business without obtaining the declaration. Further, MCA may also strike off the company.
What are the attachments to the form INC 20A? .
The Bank Account statement of a Company having all credit entries for receipt of subscription money received from all subscribers to MOA is to be attached with the form. One can also attach IMPS or NEFT receipts.