Commencement of Business Certificate and form INC20A

Home Services Commencement of Business Certificate and form INC20A
The newly rolled out and most discussed among the corporate is Form INC 20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.

Form INC 20 A(Commencement of Business Certificate):

Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.

On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from the date of incorporation of the company.

Important note: MCA has now provided an additional time limit of 180 days for filing of the aforesaid declaration. It means all the newly incorporated companies can file form INC-20A within a period of 360 days from the date of its incorporation.

Government Fees for Form INC 20 A (Commencement of Business Certificate):

Nominal Share Capital Applicable Fees in (Rs.)
Where share capital is less than 1,00,000 200
1,00,000 or above but not exceeding 4,99,999 300
5,00,000 or above but not exceeding 24,99,999 400
25,00,000 or above but not exceeding 99,99,999 500
1,00,00,000 or above 600

Form INC 20 A late filing fees (Commencement of Business Certificate):

Period of delay late fees
Up to 30 days 2 times of normal fees
More than 30 days and up to 60 days 4 times of normal fees
More than 60 days and up to 90 days 6 times of normal fees
More than 90 days and up to 180 days 10 times of normal fees
More than 180 days 12 times of normal fees
 

Penalty for Form INC 20 A for Commencement of Business:

  • Company will be liable to pay Rs. 50,000 penalty for not filing the Form INC 20A
  • Every officer who is in default is liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-
  • Registrar may initiate action for the removal of the name of Company / Strike off company name
Consequences of non-filing of Form-INC-20A may create hindrance for companies to start their business and also while borrowing of money. The company would be liable to a Penalty for late filing the Form INC-20A if it exceeds 360 days of from the date of

ESSENTIAL

1599 / MO
  • Form 20A Filing for capital upto INR 1 Lakh

ENHANCED

1999 / MO
  • Form 20A Filing for capital upto INR 25 Lakh

ULTIMATE

2499 / MO
  • Form 20A Filing for capital upto INR 50 Lakh
  • Target Analysis
  • Budget Friendly
  • Flexible Tools

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