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Non-Compliance with Form INC 20A - Potential Penalties

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.

Penalty to the officers

Every such officer in default shall be liable to a penalty of Rs 1,000 per day for each day during which the default continues subject to a maximum of Rs 1,00,000.

Penalty to the company

A penalty of Rs 50,000 will be levied on the company if it fails to comply with the mentioned requirement.The penalties for non-compliance are very high so as to curb out the number of shell companies incorporated.

General Penalty

If any default is made in this section, the company shall be liable to a penalty of Rs. 50,000 and every officer who is in default shall be liable to a penalty of Rs. 1000 for each day during which such default continues but not exceeding an amount of Rs. 1,00,000

Form 20A - What You Need and How to Complete It

Declare business commencement within 180 days for legal compliance.

A certificate of business commencement has to be obtained within 180 days from the date of incorporation and an eForm has to be filed with the concerned ROC (Registrar Of Companies) regarding the same. A declaration under section 10A from the directors has to be provided in the form of a Board Resolution in the eForm itself. In addition to this, a proof of deposit of the paid-up share capital by the subscribers also needs to be attached in the eForm. If a company pursues objects requiring registration or approval from any sectoral regulators such as The Reserve Bank of India and Securities and Exchange Board of India etc, then it shall obtain such registration or approval along with the attached declaration. The eForm has to be verified and certified by a practising professional before filing with the ROC (Registrar Of Companies).

The following companies are not required to file form 20A:

1.Companies incorporated before 2 November 2018 ( i.e before the commencement of the Companies ( Amendment) Ordi.nance, 2018)

2.Companies incorporated after 2nd November 2018 without share capital

FAQ On Form 20A

Frequently Asked Questions (FAQ) - Form 20A

1. What is Form 20A?

Form 20A is a declaration confirming the commencement of business, which must be filed within 180 days of incorporation.

2. Why is Form 20A required?

It is required to legally start business operations. Without filing, a company cannot begin its activities.

3. What happens if Form 20A isn’t filed?

Failure to file may result in penalties, and the company may be struck off the register.

4. What documents are needed for Form 20A?

Documents include the Certificate of Incorporation, proof of business address, bank account details, and a director’s declaration.

5. How to file Form 20A?

Form 20A is filed online via the MCA portal, with required details and documents uploaded for processing.

6. Can Form 20A be filed late?

No, it must be filed within 180 days. Late filing may lead to penalties or legal complications.

7. Still, Have Confusion?

Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at support@newtaxage.com

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Place your query/Request Call Back from our experts

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Documents Required For Form 20A

Non-Compliance with Form INC 20A - Potential Penalties

Form 20A - What You Need and How to Complete It

Declare business commencement within 180 days for legal compliance.

FAQ On Form 20A

Frequently Asked Questions (FAQ) - Form 20A

1. What is Form 20A?

2. Why is Form 20A required?

3. What happens if Form 20A isn’t filed?

4. What documents are needed for Form 20A?

5. How to file Form 20A?

6. Can Form 20A be filed late?

7. Still, Have Confusion?

Client Testimonials
We Are Rated 4.8 on Google

.

Place your query/Request Call Back from our experts

Place your query/Request Call Back from our experts

Documents Required For Form 20A

Non-Compliance with Form INC 20A - Potential Penalties

Form 20A - What You Need and How to Complete It

Declare business commencement within 180 days for legal compliance.

FAQ On Form 20A

Frequently Asked Questions (FAQ) - Form 20A

1. What is Form 20A?

2. Why is Form 20A required?

3. What happens if Form 20A isn’t filed?

4. What documents are needed for Form 20A?

5. How to file Form 20A?

6. Can Form 20A be filed late?

7. Still, Have Confusion?

Client Testimonials We Are Rated 4.8 on Google

Client Testimonials
We Are Rated 4.8 on Google