What is Form INC-20A?

• As per section 10A introduced in Companies (Amendment) Ordinance, 2018, every company incorporated after 02/11/2018 shall not commence business or exercise any borrowing powers prior to filing of INC 20A.
• Form INC 20A, a Declaration to be filed by the Directors of company for the purpose of Commencement of business.
• Declaration Should state that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them on the date of making such declaration.

Attachments to the Form

Filing of INC20A

Note:

In the case of a company requires registration or approval from any sectoral regulators such as the RBI, SEBI, etc., the registration or approval, as the case may be from such regulator shall also be obtained ,besides the verification done by CS or CA and attached with the declaration.

FAQ about Form INC 20A

1. Whether a Company can Accept Loan before filing INC20A?

• NO. Any company which has Incorporated after the Commencement of this rules i.e., after 02-11-2018 should not accept loans before filing the form.
• That loans may be from the Directors / Employees of the Company /any other outsiders.

2. Can Company Commence Business Activities prior to Filing of INC20A ?

• NO. Any company which has Incorporated after the Commencement of this rules i.e., after 02-11-2018 should not conduct any business activities prior to filing of the form.
• Violation will attract penalty.

Exceptions:

The Form INC20A is not applicable for the following companies

• Companies Incorporated before 02-11-2018
• Companies not having Share capital.

Penalty for non-Compliance:

The Form INC20A is not applicable for the following companies

• Company shall be liable for a Penalty of Rs. 50000/-
• Every Officer in default shall be liable for a penalty of Rs. 1000/- per day during the period of default, which may extend to Rs. 1 Lakh

Disclaimer:"The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation."