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Form INC-20A: Declaration of Commencement of Business
Every company incorporated in India with a share capital after November 2, 2018, is required to file Form INC-20A. This is a mandatory declaration that the directors have received the value of shares from the subscribers to the Memorandum of Association (MoA).
Prerequisites for Filing INC-20A
1. Bank Account Opening
The company must have a functional bank account opened in its legal name.
2. Capital Infusion
Subscribers must deposit the agreed subscription money into the company bank account.
3. Registered Office Verification
Form INC-22 must be filed if the registered office address was not provided during incorporation.
Documents Required
- Bank Statement: Showing the credit entries of the subscription money received from all shareholders.
- Board Resolution: A copy of the resolution passed by the Board of Directors for the commencement of business.
- Sectoral Regulator Approval: If the company is regulated by RBI, SEBI, or IRDAI, a copy of the approval/registration is required.
- Professional Certification: The form must be digitally signed by a practicing Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA).
Consequences of Non-Filing
Delaying or failing to file INC-20A can lead to severe legal repercussions:
| Type | Penalty Details |
|---|---|
| On Company | Fixed penalty of ₹50,000. |
| On Officers (Directors) | ₹1,000 per day of default, up to a maximum of ₹1,00,000. |
| Company Status | ROC may strike off the company name from the Register of Companies. |
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