Following are the details and documents required:
Go to the MCA Portal
Click on MCA Services. A dropdown box will appear in which select the option e filing.
Then many options will come, click on Company forms download Select Declaration of Commencement of Business
After this step a window will open and scroll down to the head “informational services”. There you can click on Form 20A to download with that you can also download instruction kit also.
Download the form. You can download the form with or without the Instruction Kit.Open it in PDF.Enter ‘Corporate Identity Number’ (CIN) of the company You may find CIN by entering the existing registration number or name of the company in the ‘Find CIN/GLN’ service at the MCA21 portal
The form will be downloaded in a pdf file. Open the form and fill in CIN (Corporate Identification Number). After this click on the “Pre fill” button which will automatically display the name, office address, email id of the company
Next step is to attach the required documents in the form and fill the declaration by providing DIN
Then after filling click on Check, the system will perform the form-level validation.
Then the form should be digitally signed by the director or authorized person and add DSC of the directors and certified professional in the form.
Add the DSC of the Directors and Certifying Professional in the form. The e-form should be digitally signed by the director or secretary of the company duly authorized by the board of directors or where the company has not appointed a secretary, by the company secretary in whole-time practice. Enter membership number or income-tax PAN in case the person digitally signing the e-Form is a secretary. Enter certificate of practice number in case person digitally signing the e-Form is a company secretary (whole time practice) and also select whether he/ she is an associate or fellow
Login to MCA portal again. Under MCA Services tab, click on upload e-forms. After successful upload, proceed to make payment of the fees. On successful payment, SRN will get generated.
The Declaration form is filed.
The penalties for non-compliance are very high which has been done intentionally so as to curb out the number of shell companies incorporated. Following are the penalties for non-compliance:
10A of Companies Act 2013
23A of the Companies (Incorporation) Rules, 2014
Every Company incorporated on or after 2nd November, 2018) having share capital.
within 180 days from the date of incorporation and only one-time filing.
Declaration that all the subscribers to the MOA have remitted the total value of the shares agreed to be taken by them in the Companies Bank Account.
In case company pursuing objects requiring registration or approval from any sectoral regulators such as RBI, SEBI etc, the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.
The proof of receiving the subscription money in form of bank statement or if received in cash, attach the cash ledger. Here receiving cash amount must be check the limit allows by income tax act and others declaration as prescribed above like RBI, SEBI approvals if any.
This e-Form must be verified by a company Secretary or a chartered Accountant or a cost Accountant in practice
Company can file such form INC-20A with Roc even after 180 days by paying additional fees as per fees rules.
the company shall be liable to a penalty of fifty thousand rupees.
every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
If form not been filled within prescribed time period the Registrar may initiate action for the removal of the name of Company, on the grounds that company not carrying any business or operations.
Company cannot borrow money.
Company cannot start business
No company can take any borrowings, raise any fund, do any agreement; make investment before filling form INC-20A, means not start any business activity.
Without filling INC-20A, company can change the directorship if the event held within 180 days from the date of incorporation but can’t do the same after lapse of 180 days of incorporation and can’t filled form DIR-12, in this regards the authority prospective that the company not start any business activity has not allowed to change the directorship.
Due to non filling form INC-20A, within 180 days or after 180 days from the date of incorporation, it is not allow the company to fill Form SH-7, MGT-14, charge related forms or any annual filling forms.
But it is noted that company can be strike off voluntary by filling form STK-2 who has not filed INC-20A within 180 days of incorporation. After a period of 180 days of incorporation, filing of form INC-20A is allowed to be filed first. Thereafter, they can file STK-2 if they desire so by following the relevant provisions of the Act relating to Strike off procedure.
No company changes its registered office before filling INC-20A.
Further there is the important point that after filling this form, no certificate has been generated by the authority. Only payment receipt is the proof of submitting the Form, further we can also check by view public documents on MCA the status of this Form.
This form is just a declaration made by the company to respective ROC that company have received the subscription money from the shareholders and take necessary approvals i.e. RBI, SEBI if any, and now the company started its business.
Yes, Form 20A is a mandatory requirement to declare the commencement of a business. As for the companies which are eligible to file form 20A, they are those that have been formed on or after 2 November, 2018, with a share capital.
The companies which are eligible to file form 20A are those that have been formed before 2nd November, 2018, and have no share capital.
The due date for the first time filing of 'Form 20A' for companies incorporated on or after 2nd November 2018 within 180 days from date of incorporation.
The details required are that all shareholders (as listed in the MOA) have paid the total value of shares, as agreed by each shareholder.
Proof of payment by shareholders for the value of shares, as listed in the Memorandum of Association. For this purpose, company bank account statements are attached along with the form 20A.
In that case, instead of a bank account statement a valid payment proof like NEFT / IMPS receipts can be attached.
Companies that do not comply with the basic requirement of filing form 20A for the commencement of business, will have to file a penalty of 50,000/-Every company officer who is responsible for filing e-form INC 20A will be charged a penalty of 1,000/- day, for every day, until the form is filed and reaches the maximum amount of 1,00,000/-
The ROC can remove a company name from the registry, if the company has not executed any business transaction or operation, after 180 days of registering the business.
Currently, there is no foolproof process to file condonation of delay for INC-20A. So, we must wait for MCA clarification concerning this matter.
Form INC 20A is available on the MCA portal.
Directors of companies incorporated after 2nd Nov 2018 must file INC 20A.
INC 20A is an e-form for declaration for commencement of business. Every company incorporated after 2nd Nov 2018 must submit the form INC-20A.
The Corporate Identification Number (CIN) is 21 digits alpha-numeric code issued to companies on being registered by the Registrar of Companies (ROCs) situated in different states across India under the Ministry of Corporate Affairs (MCA). The CIN is the unique identification number of a company and must be entered in all the forms required to be filed by the company on the MCA portal.
The Registrar of Companies (ROC) is an office under the MCA, which deals with the administration of companies in India. The Registrar of Companies (ROCs) is operating in all the major states/UT. The ROCs register companies across the states and the UTs, maintain a registry of records concerning companies that are registered with them and allow the general public to access this information on payment of a stipulated fee.
A charge means a right or interest obtained by a creditor or lender in the property of the company by way of security that the company will pay back the debt. A company’s borrowings are backed by securities, on the strength of which loans are given to them by the banks and financial institutions. Assets under charge are the assets of the company upon which a charge is created for the company’s borrowing.
Every company creating or modifying a charge on its property or assets should register the particulars of charge with the ROC within 30 days of such creation. The company registration search provides the details of the assets under the charge of the company registered with the ROC.
DIN or Director Identification Number is a unique Identification Number allotted to the person appointed as a director of a company. A DIN can be acquired by filling the SPICe form at the time of incorporation of the company.
The Simplified Proforma for Incorporating Company Electronically or SPICe+ helps incorporate a company with a single application for:
The form integrates many steps that were earlier individual forms into a single process and makes the company formation process time efficient.
DSC refers to a Digital Signature Certificate. It must be obtained from a certifying agency that has been recognized by the government. Since the registration process is now online, all the forms require a valid DSC. The cost of DSC acquisition may vary, largely depending on the certifying agency that it may be purchased from. To file a SPICe+ (INC–32) form, you need to have a DSC; however, for accessing the RUN and filing you do not require a DSC.
Reservation of name or RUN is a web service used for reserving a name for a new company or to change the name for any existing company. However, from 23rd February 2020, the name of the company needs to be reserved in the SPICe+ form. RUN service is used to change the name of the company.