How to take loan, before filing of INC 20A?



Quick Summary
Following the insertion of Section 10A, companies incorporated after November 2, 2018, must file a declaration of business commencement (Form INC-20A) within 180 days of incorporation. This section explicitly states that a company cannot commence business or exercise borrowing powers until this declaration is filed. Therefore, accepting loans, even for essential purposes like opening a bank account or covering preliminary expenses, is prohibited before filing INC 20A.

SHORT SUMMARY MCA has come with a New Section 10A inserted after Section 10 by Companies (Amendment) Ordinance, 2018 dated 02.11.2018 and the same has been inserted in Companies (Amendment) Act, 2019. This section is stated about Filing of declaration of Commencement of Business within 180 day
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About the Author

Practicing Compnay Secretary

CAREER PROFILE He is a Fellow Member of the Institute of Companies Secretaries of India having intense expertise in Corporate Law for the last 8 years. He is a young and progressive Practicing Company Secretary with zeal to dig deep into the nuances of Corporate Laws. Being a researcher at heart, he has done ... Read more

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