INC 20A – Commencement Filing
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Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
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Introduction
INC 20A – Commencement Filing
INC-20A is a mandatory form that is to be filed by a company incorporated on or after 02/11/2018 with MCA. It is also known as Declaration of Commencement of Business. It should be filed by the directors within 180 days from date of incorporation of a company which has share capital. Once the company receives a certificate of incorporation, the directors will file declaration certificate of commencement of business. It is mandatory to open a current account in a bank for depositing the share capital subscribed in MOA by each and every promoter.
Benefits
Points to make your decision easy
Fund raising
On filing the E-Form INC-20A within 180 days, the company will then be eligible to exercise the borrowing powers. Non filing of which may stop the company from borrowing the money.
Builds Credibility
All the informations relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility
No penalties
If the company files the form INC-20A within 360 days, the company can be safeguarded from heavy penalties i.e Rs. 50,000 for company & for directors Rs.1000 per day of default up to a maximum of Rs.1 lakh.
Process
ICA 20A In Easy Steps
Document Checklist
Documents required to filing INC -20A
Proof of payment of subscribed capital
Bank statement/ NEFT / IMPS receipts.
Registration Certificate
Certificate of registration by RBI/ other regulators (applicable to NBFC)
