FILING OF E-FORM INC-20A

Description

FILING OF E-FORM INC-20A:
Form INC-20A is a declaration of commencement of business that needs to be filed by companies incorporated in India. This form is mandated by the Companies (Amendment) Ordinance, 2018. Below is a detailed explanation of Form INC-20A, including its meaning, date of filing, cost, document requirements, and late fee implications.
Detailed Meaning of Form INC-20A.

Form INC-20A is a declaration filed by directors of a company confirming that the company has received the subscription money from its shareholders and that the company has complied with the relevant provisions of the Companies Act, 2013. It is essentially a declaration of the commencement of business.
Date of Filing

Form INC-20A must be filed within 180 days from the date of incorporation of the company. Failure to file this form within the specified period can lead to penalties and the company being unable to commence its business operations.

Document Requirements

To file Form INC-20A, the following documents are generally required:

Bank Account Statement: A statement showing that the company has received the subscription money from its shareholders.
Certificate of Incorporation: Copy of the Certificate of Incorporation issued by the Registrar of Companies.
Proof of Registered Office: Proof that the registered office address has been verified.
Other Supporting Documents: Any other documents as required by the Ministry of Corporate Affairs (MCA) to validate the commencement of business.

Late Fee

If Form INC-20A is not filed within the 180-day period from the date of incorporation, the company will be subject to a late fee and penalties. The late fee structure is as follows:

Up to 30 days delay: 2 times the normal filing fee.
More than 30 days and up to 60 days delay: 4 times the normal filing fee.
More than 60 days and up to 90 days delay: 6 times the normal filing fee.
More than 90 days and up to 180 days delay: 10 times the normal filing fee.
More than 180 days delay: 12 times the normal filing fee.

Additionally, failure to file Form INC-20A can lead to other significant penalties, including a fine on the company and its officers in default, and possible action by the Registrar of Companies to remove the name of the company from the register of companies.