Commencement of Business Filing
Form 20A is a declaration filed by the directors within 180 days of the date of incorporation of the company.
What is Commencement of Business Certificate and form INC 20A?
The newly rolled out and most discussed among the corporate is Form INC 20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.
Form INC 20 A(Commencement of Business Certificate):
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.
On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from the date of incorporation of the company.
Price and Plan
Price may varies for different states in India
Form 20A Filing for capital upto INR 1 Lakh
Form 20A Filing for capital upto INR 25 Lakh
Form 20A Filing for capital upto INR 50 Lakh
Benefits of filing Form 20A
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.
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.
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
Documents required for obtaining Commencement of Business Certificate
Subscribers proof of payment for value of shares i.e. bank statement of Subscribers
Certificate of Incorporation
Digital Signature of Director