Form 20A – Declaration for the Commencement of Business
Form 20A is a form that a company must file with the Registrar of Companies (ROC) within 180 days of the incorporation of a company, the directors are required to issue a declaration confirming that the subscribers to the Memorandum of the company have paid the agreed-upon value of shares, and also verifying the registered office address of the company. This declaration must be submitted along with proof of the subscription money received by the company, in the form of Form 20A, to the Registrar of Companies. This form is required by the Companies Act, 2013, and is an important compliance to do after incorporation of a company.
Who need to file Declaration for Commencement of Business?
All companies with share capital that were incorporated after November 2, 2018, including Section 8 companies with share capital, are required to submit Form 20A.
Who are not required to file Form 20A?
Companies which incorporated before November 2, 2018, with or without share capital.
Requirements
Proof of payment of money received from the subscribers.
- Companies Bank Statement for Proof of Payment received from the Director.
- A photograph of the Registered Office must display the external building and the inside office, with at least one Director present therein
- Account details of the Director from which they have transferred to companies
Penalties
The penalties for non-compliance with the aforementioned requirement are intentionally high to discourage the incorporation of shell companies. Below are the penalties for non-compliance:
Penalty on the company: A penalty of Rs. 50,000 will be imposed on the company for failing to comply with the requirement.
Penalty on officers: Each officer in default will be subject to a penalty of Rs. 1,000 per day for every day the default continues, up to a maximum of Rs. 1,00,000.
Company strike-off: If the Registrar has reasonable grounds to suspect that the company is not carrying out any business or operations even after 180 days of incorporation, the Registrar may remove the company's name from the Register of companies.
Additional Fee
- Up to 30 Days - 2 times of normal fees
- Above 30 but not exceeding 60 Days - 4 times of normal fees
- Above 60 days but not exceeding 90 Days - 6 times of normal fees
- Above 90 days but not exceeding 180 Days - 10 times of normal fees
- Above 180 Days - 12 times of normal fees
After filing the form with the required fees. Once the verification process is completed, an acknowledgment email will be generated.
At SV Consultant, our team of expert professionals is dedicated to assisting you in obtaining a Commencement of Business Certificate or any other vital service necessary for maintaining your company's compliance.
Share:
facebook Twitter Google+ tumblr Pinterest Pinterest linkedinPost A Comment
Our Service Area
TamilNadu
Advertising Consultant
Kerala
Activation Consultant
Karnataka
Change Management Consultant