Applicability On Companies
The MCA has notified the new provision on 26th January 2019 which shall have retrospective effect to all companies incorporated on or after 2nd November 2018. Hence every applicable company must take steps to file INC-20A ASAP.
No Activity until approval of INC-20A
A company must not enter into any transaction or business activity before approval of INC-20A. In other words, any agreement, sale, purchase without the issue of the certificate of commencement of business shall be an illegal activity.