As per new section inserted after section 10 of the companies act 2013, section 10A says a company incorporated on or after 02//11/2018, having share capital shall not commence its business or exercise any borrowing powers unless a declaration is filed by the directors within 180 days from date of incorporation of company in form 20A (notified on 26/01/2019), with the Roc that ‘every subscriber to the MOA has paid the value of the shares agreed to be taken by him on the date of making of such declaration' 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.
1. Is it mandatory to file form 20A?
Yes, it is mandatory to obtain certificate of Commencement of Business by filing form 20A.
2. Who shall file 'Form 20A'?
- all the companies incorporated on or after 02//11/2018
- and having a share capital to file form 20A.
3.Who shall not file 'Form 20A'?
- Companies incorporated before 02//11/2018
- Companies incorporated on or after 02//11/2018 not having share capital
4.What is the due date of filing ?
Due date for the first time filing of 'Form 20A'
company incorporated on or after 02//11/2018
within 180 days from date of incorporation of company
5.Which details required to be furnished in 'Form 20A'?
Declaration that all the subscriber to the MOA has paid the total value of the shares agreed to be taken by him.
6. What are the attachments to the form 20A?
Subscribers proof of payment for value of shares.
We can attach Bank Account statement of Company having all credit entries for receipt of subscription money received from all subscribers to MOA.
7. What if Bank Statement is not available?
valid payment proof like NEFT / IMPS receipts.
8. What are the Penalty if not Filed the form?
- Company liable to pay Rs. 50,000
- every officer who is in default liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-
9. What are the Consequence if form is not Filed within time?
- Registrar may initiate action for the removal of the name of Company
- Company cannot borrow money
- Company cannot start business.
Tags :Corporate Law