As per section 10A of the Companies Act, 2013, Form INC 20A is a one-time declaration for commencement of business. It contains the declaration that all the subscribers to the MOA have paid the total value of the shares.
All companies are required to file Form INC 20a has to file the same within 180 days of its corporation.
In simple words, no company can begin any business or exercise any borrowing power unless they file the declaration in form INC 20A.
The filing fees of Form INC 20a depends upon the share capital of the company:
Nominal Share Capital (In Rs.) | Fees for filing Form 20a (In Rs.) |
less than 1,00,000 | 200 |
1,00,000 or above but less than5,00,000 | 300 |
5,00,000 or above but less than 25,00,000 | 400 |
25,00,000 or above but less than1,00,00,000 | 500 |
1,00,00,000 or above | 600 |
Besides that, if the company fails to file the form within the stipulated time, then the company has to pay the additionallate filing fees:
Nominal Share Capital | Applicable Fees in (Rs) |
Up to 30 days | 2x of normal fees |
More than 30 days but up to 60 days | 4x of normal fees |
More than 60 days but up to 90 days | 6x of normal fees |
More than 90 days but up to 180 days | 10x of normal fees |
More than 180 days | 12x of normal fees |
In case of default, the company and the officers are liable to pay the penalty as follow:
Penalty provisions | On the company Rs. 50,000 On the officers in default Rs. 1,000 per day until the default continues. However, the maximum penalty on the officers shall be Rs. 1,00,000. |
Strike – off the name of the company | The company registrar can remove the name of the company from the registrar of companies if the company has not commenced its business operations after 180 days of incorporation.
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