With effect from 2nd November, 2018, the RoC has notified a major form to be filed post incorporation of the Company. Evert Company with share capital is required to file a declaration with the RoC about intimation of commencement of business within 180 days.
Purpose
INC-20A is a declaration filed by the directors to the RoC that the Company has commenced its business operations and the amount of share capital has been credited to the Company’s Bank Account.
Due date: within 180 days from the date of Incorporation of Company
Consequences of Non-compliances:
- Penalty on Company: INR 50,000/- on filing of INC 20A after 180 days;
- Penalty on Directors: Penalty of INR 1,000 per day during which default continues subject to maximum of INR 1,00,000.
- Company strike off : if the Registrar has reasonable grounds to believe that the company is not carrying on any business or operations even after 180 days of incorporation, the registrar may remove the name of the company from the Register of companies.
Conclusion
Completing the form INC-20A is an essential requirement for legally initiating business operations. Neglecting to submit this form may result in penalties and company strike off.
