Commencement of Business


Commencement of Business

Starting at Rs. 3,000

Commencement of Business

FORM INC- 20A

MCA (Ministry of Corporate Affairs) vide its notification dated 18/12/2018 which was Companies (Incorporation) fourth amendment Rules, 2018. Now, it has come into force wherein after rule 23, under which“Rule 23A has been inserted” stating that the declaration to obtain a certificate of commencement of business is required to be filed inForm – INC- 20A.

Those companies who have been incorporated after the commencement of the companies (Amendment) Ordinance, 2018, i.e 02-11-2018 and having share capital shall not commence any business or exercise any borrowing powers unless-

  • A declaration filed by a director within a period of 180 days of the date of incorporation of the company in FORM INC- 20A and verified in such a manner as may be prescribed, with the registrar that all subscribers to the memorandum have paid the value of the shares agreed to be taken by him on the date of making of such declaration, and
  • The company has filed with the registrar verification of its registered office as provided in sub-section (2) of section 12 in FORM INC-22.

Documents required for filing Form INC-20A

The Bank statement of the company containing all credit entries for receipt of subscription money received from all subscribers to Memorandum of Association.

Procedure for Form INC-20A

What are the inclusive in our packages?

  • Eligibility consultation
  • Document preparation
  • Application drafting
  • Application filing
  • Government Fees

What if the company fails to follow the compliances?

In the case of Non-Compliance, that company is not allowed to start any business activity and exercise any borrowing power under section 10A.

What would be the amount of Penalty in case of any default?

In case of any default, the following penalty will be imposed:

  • A Penalty of Rs. 5000 will be levied on the Company.
  • A Penalty of Rs. 10000 per day on the Director of the company will be levied. The amount of this penalty will reach up to Rs. 100000.

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