In this article, we will let you know all about INC 20A. If you are thinking of starting a private limited company then you have to keep in mind that after the amendment of the companies act now you have to fill the declaration form for commencement of business. INC20A is a form which has to be filled within 180 days of the date incorporation of the company. In case failure of filling this form, you may have to pay huge fine form it. Without filling this form you cannot commence your business activity so this form is very important for private limited company because without this form you cannot commence your business activity and you cannot exercise any borrowing powers.
What is INC 20A Form
INC20A is a form which should be filed after incorporation of the company. As per the amendment of the companies act, section 10A of companies state that a company incorporated after the amendment of 2018 and having a share capital shall not commence any business or exercise any borrowing powers unless a declaration is filed. INC20A is a form which has to be filed by every company having a share capital and without filing this form you cannot commence any business or exercise any borrowing powers so INC20A form must be filed to the registrar of company by a director within a period of 180 days of the date of incorporation of the company. In case if any company fails to comply with this, the company shall be liable to a penalty of fifty thousand rupees. Purpose of this form is declaration prior to the commencement of business or exercising borrowing powers. If you are thinking of starting a private limited company then this form is important you have to file this form within 180 days of its incorporation.
Document Required for INC 20A Form
- You have to submit the subscriber’s proof of payment for value of shares.
- You have to submit the bank statement of company having all credit entries for receipt of subscription money from subscribers.
- In case your company is regulated by any sectoral regulator then you have to submit the proof of this and certificate of registration is also required.
Format of Form
Format of INC20A form is easy to fill as it does not require much information. You can file this form in Hindi or English language. You have to first fill your company identify number (CIN) of company then you can click on the pre-fill button. After clicking on the button of pre-fill, information of company like name, address, email will be fill up automatically in the form. Then you have to attach the Subscribers proof of payment for value of shares and if the affairs of the Company is regulated by any sectoral regulator (like RBI in case of NBFI activities) then you have to attach the Certificate of Registration issued by the RBI(Only in case of Non-Banking Financial Companies) /from other regulators. Then you have to fill your director identification number and this form required digital signature of director so director has to sign this. After filling up the information you can submit the form on the website of Ministry of corporate affairs. If you are thinking of filing this form offline then you can print this format and fill the form and then you can send this form to the office of registrar of companies.
Time Limit for filing this form
A company shall submit this form within 180 days from the date of obtaining Incorporation certificate of company. In case failure of filling this form, you may have to pay huge fine on it that is 50,000 rupees.
As you can see in above article that companies act introduced changes in act which states that a company shall file the INC 20A form which is a declaration by the directors of the company and it shall be filed within 180 days of its incorporation and in case of default heavy fine will imposed on company and without filling this form a company cannot commence their business activity and cannot exercise their borrowing powers. So as you can see that this form is very important so you should file this form in prescribed period. Format of this form is easy and you can file this online through the website of Ministry of corporate affairs.