Form 20A- Declaration for the Commencement of Business

Form 20A- Declaration for the Commencement of Business

According the Companies amendment ordinance 2018 every company need to file a certificate of commence of business. Form 20A is a simple declaration filed by the directors within 180 days of the date of incorporation of the company.

Basic purpose of this  Form 20A  is to ensure that the subscriber has deposit the paid up capital amount and there is also need to attached  such deposit amount by subscribers in the  e Form.  A certificate of business commencement has to be obtained within 180 days from the date of incorporation.  Form 20A  has to be verified and certified by a practising  professional ( Chartered Accountant) before filing with  Registrar of Companies.

However the following companies are not required to file form 20A

  1. Companies incorporated before 2nd November 2018 .
  2. Companies incorporated after 2nd November 2018 without share capital.

 

Penalties for Default

1.A penalty  of Rs. 50,000 will be levied on the company if it fails to comply.

2.Penalty to be levied on the officers who involve such  default shall be liable to a penalty      Rs. 1000 per days subject to a maximum of Rs 100 000.

3. Company  name strike off from the register of company if the Registrar has  reasonable grounds to believe that the company is not carrying on any business or operations even after 180 days of incorporation.

 Fee for filing e Form 20A

As you know only  Form 20 A need to file for companies  having share capital  less than Rs  100000  Rs. 200

and where a companies share capital exceed Rs 100000 but do no exceed Rs 4,999,999 Rs 300

and maximum Rs 600 within prescribed time.

 Form 20A download form MCA site

Click here

Appointment of First Auditor under Companies Act 2013

 

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