All about INC - 20A 'Business Commencement Form'

INC-20A form is required to be filed as per section 10A(1)(a) of the Companies Act, 2013 and Rule 23A of the Companies (Incorporation) Rules, 2014. It is mandatory to declare the commencement of business for any company via INC 20A. Without declaring the same, the company cannot start the business activities or proceed towards borrowings of funds.

When to file, Time limit, and other rules as per Section 10A?

A company incorporated after 2nd November 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless -

• A declaration is filed by a director within a period of 180 days of the date of incorporation of the company, 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
• The company has filed with the Registrar a verification of its registered office as per 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 ₹ 50,000 and every officer who is in default shall be liable to a penalty of ₹ 1,000 for each day during which such default continues but not exceeding ₹ 1 Lac.

Where no declaration has been filed with the Registrar within a period of 180 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 initiate action for the removal of the name of the company from the register of companies.

How to fill and file form INC 20A?

Information required for filing:

• Enter Corporate identity number (CIN) of company
• Whether the affairs of the Company are regulated by any sectoral regulator (like RBI in case of NBFI activities) – Click the checkbox if yes
• Specify the name of the regulator, the letter number/registration, Date of approval/registration.

Attachments to be submitted:

• Subscriber’s proof of payment for the value of shares (Such as Bank Statements)
• Certificate of Registration issued by the RBI (Only in case of NBFCs) /from other regulators. It is mandatory to attach this document if ‘Yes’ is selected in field 3(a).
• Any other information that the company wants to provide as an optional attachment.

Declaration and Digital Signing by authorized Director:

• Enter the serial number and date of board resolution authorizing the signatory to sign, give declaration and submit the eForm.
• Only the Director of the company is allowed to sign this eForm.

Filing of the form:

• The form can be downloaded from the below link: https://www.mca.gov.in/MinistryV2/companyformsdownload.html
• Can be submitted using submit button in the form.
• The eForm will be auto-approved.
• On successful submission of the eForm INC-20A, SRN will be generated and shown to the user which will be used for future correspondence with MCA.

Mandatory requirement to get the form verified before filing -

The contents of the form shall be mandatorily required to be verified before submitting by any of the below:

• A practicing Chartered Accountant
• A practicing Company Secretary
• A practicing Cost Accountant.

Fees for efiling the form –

Companies having Share Capital:

Share Capital The fee to be paid

Less than 1 Lac ₹ 200

1 Lac to ₹ 4,99,999 ₹ 300

5 Lacs to ₹ 24,99,999 ₹ 400

25 Lacs to ₹ 94,99,999 ₹ 500

1 crore or more ₹ 600

Companies not having Share Capital: ₹ 200

Fee for Delay in the filing of form –

Period of Delay The fee to be paid

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