Non- Filing of INC20A

Hi Abhay,

About the non-filing of Form INC-20A (Declaration for commencement of business for companies), here’s what you need to know:

Key Points about INC-20A:

• Every company incorporated under Companies Act, 2013 (including Section 8 companies) must file INC-20A within 180 days of incorporation.

• This form declares that the company has received the minimum subscripttion amount (e.g., share capital or donations for Section 8).

Consequences of Non-Filing:

• Penalties are heavy:

  • ₹50,000 fine on the company.

  • ₹1,000 per day fine on every director from the due date of filing till actual filing.

• The MCA portal currently does not allow filing INC-20A after the due date (180 days).

What Can You Do Now?

1. File an appeal or petition with Regional Director (RD):

   • You can apply for condonation of delay with the RD under Section 460 of Companies Act.

   • This is to seek permission to file INC-20A late and waive penalties.

2. File INC-20A via RD order:

   • Once RD condones the delay, you can file INC-20A with RD’s approval.

3. Immediate Steps:

   • Prepare explanation for delay (e.g., unawareness, pandemic-related issues).

   • Consult a Company Secretary or legal expert to draft the appeal.

Can penalties be waived completely?

• It depends on RD’s discretion. Courts and RD often grant relief if there is a reasonable cause.

Summary: