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INC 20A FORM FILING
"GST registration is essential for legal business operations and unlocking tax benefits."
INC 20A FORM FILING
All companies registered on or after November 2, 2018, must submit a certificate to start business as per the Companies (Amendment) Ordinance 2018. Directors need to file Form 20A, a declaration, within 180 days of the incorporation date. Without the director filing the document, the corporation is unable to carry out any operations or use any borrowing authority.
Before being submitted to the ROC, it must be confirmed by a practicing chartered accountant, company secretary, or cost accountant. Every subscriber to the memorandum must have paid the value of their shares on the declaration date, according to the declaration. If the INC-20A form is not filed, the Registrar (ROC) may remove the company's name.
COMPANIES EXEMPT FROM FILING INC 20A
Businesses that do not need to file Form 20A include those listed below:
• Companies set up before November 2, 2018 (which is when the Companies (Amendment) Ordinance, 2018 started).
• Businesses without share capital that were incorporated after November 2, 2018.
TIME PERIOD FOR FILING INC20A
Within 180 days from date of incorporation of company
HOW TO FILE INC 20A
The Ministry of Corporate Affairs' official website has the INC-20A form, usually known as the declaration of business commencement. Together with the required paperwork and the appropriate filing costs, the form can be completed and sent online to the ROC. For a full and comprehensive understanding, the step-by-step, detailed process for submitting INC-20A has been explained below.
• Documents
Form INC-20A, or the declaration of commencement of business, must be filed with a specified set of supporting papers in accordance with the provisions stated in the Companies Act of 2013. Before starting the form filing procedure, all of these documents must be organized to prevent any problems or inconveniences and to considerably reduce the chances that the form will be rejected simply for lack of proper or sufficient paperwork.
• Filing the INC-20A form
The applicant director can start the INC-20A filing process once all the paperwork has been organized. The form is available on the Ministry of Corporate Affairs' official website, which the applicant director must visit in order to complete this. The applicant can use his Digital Signature Certificate to sign the completed form after completing it online on the website. Furthermore, a CA, CS, or CMA who practices independently must attest to the application's validity.
• Provide the required documentation.
The applicant must upload all of the papers requested by the declaration form in their electronic form after completing it online and signing it digitally. The next section contains an exhaustive and detailed list of all such documents.
• Submit INC-20A form.
Once all the information has been completed and all the required papers have been uploaded, you can upload the form to the MCA website and submit it once the government fee has been successfully paid.
• The Acknowledgment Receipt is issued.
Once all the information has been completed and all the required papers have been uploaded, you can upload the form to the MCA website and submit it once the government fee has been successfully paid.
PROCESS AND CRITERIA
Within 180 days after the date of formation, a certificate of business commencement must be obtained, and an electronic form pertaining to the same must be submitted to the relevant ROC (Registrar of Companies).
The directors' declaration under section 10A must be submitted in the eForm itself as a Board Resolution. Additionally, the eForm must include a proof of deposit from the subscribers of the paid-up share capital. A company must get the necessary registration or approval along with the accompanying declaration if it seeks to require from any sectorial authorities like the Securities and Exchange Board of India or the Reserve Bank of India.
A practicing professional must verify and certify the eForm before it can be submitted to the Registrar of Companies (ROC)
PENALITIES IN CASE OF NON FILING
In order to reduce the number of shell companies that are incorporated, the penalties for non-compliance are very steep. The consequences for non-compliance are as follows:
• Penalty to be imposed:
If the company not meet the aforementioned condition, a penalty of Rs 50,000 will be imposed.
• Penalty to be imposed on the officers:
Any official who is in default would be subject to a fine of up to Rs 1,000, per day for each day and if the default continues than maximum amount of Rs 1,00,000
• Company strike-off:
The Registrar may remove a company's name from the Register of Companies if they have good reason to think that it is not doing any operations or business, even 180 days after the company was incorporated.
FEES FOR FILING
In case of company having share capital:
| S.NO | SHARE CAPITAL OF COMPANY (INR) | FEES APPLICABLE (INR) |
|---|---|---|
| 1 | Less than 1,00,000 | 200 |
| 2 | 1,00,000 to 4,99,999 | 300 |
| 3 | 5,00,000 to 24,99,999 | 400 |
| 4 | 25,00,000 to 99,99,999 | 500 |
| 5 | 1,00,00,000 or more | 600 |
In case of delay in filing the form:
| S.NO | PERIOD OF DELAY | ADDITIONAL FEE (INR) |
|---|---|---|
| 1 | Up to 30 days | 2 times of standard fees |
| 2 | Over 30 days and up to 60 days | 4 times of standard fees |
| 3 | Over 60 days and up to 90 days | 6 times of standard fees |
| 4 | Over 90 days and up to 180 days | 10 times of standard fees |
| 5 | More than 180 days | 12 times of standard fees |
APPROVAL OF FORM INC20A BY ROC
The ROC checks the declaration and accompanying papers for accuracy and completeness when the inc20a is submitted. It's what happens.
The documentation is reviewed by ROC. The first examination determines whether the documents satisfy the legislative requirements and whether all necessary information has been appropriately given. The ROC will request additional proof or explanations if the documentation is determined to be insufficient.
Inconsistencies could result in questions or the requirement to submit again. The ROC will ask questions or indicate that the form has to be resubmitted if inconsistencies or mistakes are found in the submission. Prior to clearance, this stage makes sure that all information conforms with legal requirements.
Usually, approval is conveyed by email or the MCA portal. Approval is given after the review is over and no more concerns are discovered. The company's registered email address receives the confirmation of this approval, or it may be evaluated via the MCA portal.
- FAQ
1. What is Form INC-20A?
In accordance with Section 10A of the Companies Act of 2013, the firm has to submit a declaration of commencement of business (FORM INC 20A), After a company is incorporated, it must submit this form to the Registrar of Companies (ROC).
2. Who needs to file Form INC-20A?
Every business, with the exception of companies without share capital, must submit Form INC-20A to indicate the start of operations within 180 days after the date of incorporation.
3. When should Form INC-20A be filed?
Within 180 days of the company's incorporation date, Form INC-20A must be submitted. The business can be subject to fines or additional penalties if it doesn't file within this time frame.
4. What documents are required to file Form INC-20A?
• Proof of the registered office's validity.
• A bank certificate or statement attesting to the company's opening of a bank account and the deposit of the necessary funds.
• Photos of the director's office and the registered office with the director standing outside.
5. Is there a fee to file Form INC-20A?
In accordance with the authorized capital of the business, a prescribed fee is required for the submission of Form INC-20A.
6. Can Form INC-20A be filed after the due date?
Yes, however the late filing could result in a penalty for the business. To avoid penalties, it is usually best to file within the time limit specified.
7. What happens if Form INC-20A is not filed?
If Form INC-20A not be submitted within the allotted time, the business will not be regarded as compliant and could be subject to fines. The company will also be unable to lawfully start operations.
8. Can a company file Form INC-20A if it has not raised capital yet?
No, before submitting Form INC-20A, the business must have raised the funds (as specified in its memorandum of association) and deposited them in the bank.
9. Who can sign the Form INC-20A?
The director who is authorized signatory of the company must sign the form and it must be certified by practicing chartered accountant , company secretary or cost accountant
10. What is the consequence of incorrectly filing Form INC-20A?
The form may be rejected for improper filing. Penalties or fines may be applied in certain situations. Making ensuring that every detail is correct and complies with the rules is crucial.
11. Can a company file INC-20A before obtaining the physical office space?
No, a business without a real registered office is unable to file an INC-20A. The address on the form needs to be active.
12. Do foreign companies need to file INC-20A?
Yes, foreign companies that have office in India must also file INC-20A within 180 days of registration, declaring their registered office address.
13.Can a company file INC-20A if the office is not operational or is under construction?
No, the registered office needs to be completely functional and usable. The business should wait until the office is completely set up before filing INC-20A if it is still under construction or not yet functioning then form cannot be filed.
14.Is the proof of address of the registered office required to be notarized?
No, notarization of the proof of the registered office address is not necessary. It must, however, be genuine and contain a utility bill that is no more than two months old in addition to the documentation relating to the property, like a sale deed or rental agreement.