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
- Companies incorporated before 2nd November 2018 .
- 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