- Open Current Bank Account
- Collect Share Subscription Money from the shareholders
- The share subscription should be deposited in the company through banking channel
- The eform shall be filed with the digital signature of any of the director
- The eform shall be attested by a practising CA, CS or CMA
FAQ on Certificate of Commencement of Business
Q1: What is e-form INC-20A?
The e-form INC-20A is the prescribed form for making a declaration as required under section 10A of the Companies Act, 2013, as inserted via the Companies Amendment Ordinance, 2019. The Ministry of Corporate Affairs has come up with Companies (Amendment) Ordinance 2018 by which it has been directed that all the companies which are registered after the Companies (Amendment) Ordinance, 2018 i.e after 2nd November 2018 and holding a share capital are required to file the eForm INC-20 to obtain Commencement of Business Certificate. It has to be filed by all the specified companies before they commence any business or exercise any borrowing powers.
Q2: What is the time limit for filing the eform INC-20A?
180 days from the date of incorporation of the company in case the same is on or after 2nd November 2018. For example: If a company is registered on 2nd November 2018 then the last date of filing the Form INC-20A shall be 2nd May 2019.
Q3: Can I file the Form INC-20A even when I miss the deadline of 180 Days?
As per MCA, If a company does not file the declaration in form INC-20A within 180 days of its incorporation then the status of the company shall be changed to “Struck Off(Defunct)”. However, the company may be revived after making an application to the National Company Law Tribunal (NCLT). If the company is ordered to be revived or in case the default has taken place but the ROC has not struck down the company yet the Form INC-20A can still be filed with an additional government fee for delayed filing to the MCA.
Table of the additional fee as per rule:
|Sl. No||Delay||Additional Fee as times of Normal filing fee|
|1.||Delay up to 30 Days||2 Times|
|2.||More than 30 days and up to 60 days||4 Times|
|3.||More than 60 days and up to 90 days||6 Times|
|4.||More than 90 days and up to 180 days||10 Times|
|5.||More than 180 days||12 Times|
Q4: What is the penalty of non-filing?
Penalties have been prescribed for both the Company as well as its Directors. The company in default shall be liable to pay a sum of Rs. 50,000, while every officer in default, shall pay Rs. 1000 per day for each day of default, however, the penalty shall not be more than Rs. 1,00,000.
Q5: Why company need to file eform -INC-20A?
If a company does not file eFORM INC-20A it cannot commence its business, further, it cannot borrow any funds, Besides, it shall result in severe consequences in form of closing down the company by removing its name from the Register of Companies.
Q6: What are the documents required for filing the eform INC-20A?
Though only the proof of depositing the share capital amount from the subscribers of MOA in the bank account of the company is required to be attached with the eform INC-20A, however, we shall refer following documents before filing the form INC-20A
- Certificate of Incorporation (COI) to confirm the date of incorporation
- MOA and AOA of the Company – To ascertain the Names of Subscribers
- Proof of payment of the share capital by the shareholders (Company Bank A/c)
- Spice 32 Form to check if the company has filed documents of registered address of the company
- In case a company is incorporated with communication address then it is required to file registered address proof in INC 22 within 30 days of incorporation.