Table of Contents
The Companies Amendment (Ordinance), 2018 amending the Companies Act, 2013 was passed on 2nd November 2018. It suggests over 30 amendments to the Companies Act. The Certificate and Declaration for Commencement of Business is one of them. The major amendments proposed in the Companies Amendment Ordinance 2018 include
- Increase in powers of the Registrar of Companies and the Regional Director
- Revision in compounding threshold for going to NCLT
- Introduction of Certificate of Commencement of Business
- Stricter norms for Independent Directors
- Alteration in relation to time period for charge registration and satisfaction
- Introduction of new grounds for strike off of Company.
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Table of Contents
- EForm INC-20A
- Section 10A
- Declaration for Commencement of Business (RULE 23A)
- MCA Fees for filing Eform INC 20A
EFORM INC-20A
The Companies Amendment (Ordinance), 2018 brings with itself more compliances for startups. Now, a new company has to file an additional return (INC-20A) within 180 days. Enter the certificate and declaration for commencement of business. Form INC-20A is to be filed Pursuant to Section 10A(1)(a) of the Companies Act, 2013. Any company incorporated after November 2018 would be required to obtain Commencement of Business Certificate.
SECTION 10A
- Now a newly incorporated company shall not commence any business or exercise any borrowing powers unless
- A declaration is filed by a director within a period of 180 days of the date of incorporation of the company. The declaration should state whether all subscribers to the memorandum have paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
- The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
- A default would lead to a penalty of Rs. 50,000/- for the company. And every office in default shall be liable to a penalty of Rs. 1000 for each day the default continues. However, it wont exceed an amount of Rs. 1,00,000.
- Where no declaration has been filed with the Registrar within a period of 180 days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.]
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Declaration for Commencement of Business (RULE 23A).-
The declaration under section 10A by a director shall be in Form No, lNC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a company Secretary or a chartered Accountant or a cost Accountant in practice Provided that in the case of a company pursuing objects requiring registration or approval from any sectoral regulators such as the Reserve Bank of India, Securities and Exchange Board of India, etc., the registration or approval, as the case may be from such regulator shall also be obtained and attached with the declaration.
ATTACHMENTS
- Subscribers proof of payment for value of shares
- Certificate of Registration issued by the RBI (Only in case of Non-Banking Financial Companies) /from other regulators. It is mandatory to attach this document if ‘Yes’ is selected in field 3(a).
- Any other information can be provided as an optional attachment(s).
Time limit for filing Form INC 20A is 180 days from Date of incorporation of company
Fees
Fee for filing e-Forms or documents in case of company have share capital
| Nominal Share Capital | MCA Fees |
| Less than 1,00,000 | Rs. 200 |
| 1,00,000 to 4,99,999 | Rs. 300 |
| 5,00,000 to 24,99,999 | Rs. 400 |
| 25,00,000 to 99,99,999 | Rs. 500 |
| 1,00,00,000 or more | Rs. 600 |
Fee for filing e-Forms or documents in case of company not have share capital – Rupees 200
Further, in case of delay in filing of application for Commencement of Business certificate, additional or higher Government fee as mentioned below may be applicable on top of the penalty payable.
| Period of delays | Additional Fee |
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
| More than 90 days and up to 180 days | 10 times of normal fees |
| More than 180 days | 12 times of normal fees |
Download the E Form INC 20A from here.
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