{"id":11626,"date":"2020-04-07T09:31:09","date_gmt":"2020-04-07T09:31:09","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=11626"},"modified":"2024-06-03T16:07:41","modified_gmt":"2024-06-03T10:37:41","slug":"commencement-of-business-form-inc-20a","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/commencement-of-business-form-inc-20a\/","title":{"rendered":"Commencement of Business &#8211; Form INC-20A"},"content":{"rendered":"<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"padding: 10px;\"><strong>Table of Content<\/strong><\/p>\n<ul>\n<li><a href=\"#legal\">Legal Provision for Commencement of Business<\/a><\/li>\n<li><a href=\"#e-form\">Attachments of the e-form<\/a><\/li>\n<li><a href=\"#additional\">Additional fee (in case the form is not filed within the time)<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Companies which are registered after the commencement of the Companies (Amendment) Ordinance, 2018 in India and is having a share capital shall file a declaration for the commencement of business certificate before commencing any business or exercising any borrowing powers. Any company which is incorporated after 2<\/span><span style=\"font-weight: 400;\">nd<\/span><span style=\"font-weight: 400;\"> November 2018 is required to get a Commencement of Business Certificate.<\/span><\/p>\n<p id=\"legal\" style=\"text-align: justify;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-40406 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/04\/Commencement-of-Business-Form-INC-20A-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Legal Provision for Commencement of Business<\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As per Section 10A of Companies Act, 2013 which states that a Company incorporated which is incorporated after 2nd April, 2018 having a share capital shall commence any business or exercise any borrowing powers after shall file a declaration in <\/span><b>E-form INC- 20A<\/b><span style=\"font-weight: 400;\"> to be filed by a director within a period of 180 days from the date of incorporation of the Company in such form and verified in such manner as may be prescribed with the <a href=\"https:\/\/www.cagmc.com\/roc-filing\/\">Registrar of Companies<\/a> declaring that every subscriber to the memorandum who has agreed to subscribe the memorandum has paid the value of the shares agreed to be taken by him\/her on the date of making of such declaration.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If a company pursues any objects which requires registration or approval from any sectoral regulators such as The Reserve Bank of India and Securities and Exchange Board of India etc, then the registration or approval is required and to be attached with the declaration.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Further, as per sub-\u00adsection (2) of section 12.the Company must have filed with the Registrar of Companies a verification of its Registered Office as provided in <\/span><b>E-form INC-22.<\/b><\/p>\n<p id=\"e-form\" style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If any Companies make default in complying with the requirements of this section, then such Company shall be liable to pay penalty amounting to Rs. 50,000\/- and every officer who is in default shall be liable to pay a penalty of Rs.1000\/- for each day during which such default continues but not exceeding an amount of Rs.100,000\/-.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The non filling of Form INC-20 A disprove all the business activities as carried out by the Company since its incorporation.<\/span><\/p>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Attachments of the e-form:-<\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Proof of deposit of Paid-up Share Capital;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Necessary Board Resolution<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Registration or Approval from the Sectoral Regulator<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">application for condonation of delay if required<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">There are two situations which are as stated below:-<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Filing of e-form within 180 days fees of the same depends upon the paid up <a href=\"https:\/\/en.wikipedia.org\/wiki\/Share_capital\" target=\"_blank\" rel=\"noopener\">share capital<\/a> along with the proof that the subscribers has deposited the requisite amount.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Filing of e-form after 180 days an application for condonation of delay with brief stating the reason of delay.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Government fee for obtaining Commencement of Business Certificate is as below:<\/span><\/p>\n<table style=\"border: 1px solid #ddd; text-align: left; margin-left: 15px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><b>Nominal Share Capital<\/b><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><b>Fee applicable<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Less than 1,00,000<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Rupees 200<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">1,00,000 to 4,99,999<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Rupees 300<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">5,00,000 to 24,99,999<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Rupees 400<\/span><\/td>\n<\/tr>\n<tr id=\"additional\">\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">25,00,000 to 99,99,999<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Rupees 500<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">1,00,00,000 or more<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Rupees 600<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Fee for filing e-Form for companies having no share capital:<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In this case, the fees applicable is only Rs 200.<\/span><\/p>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Additional fee (in case the form is not filed within the time)<\/h3>\n<table style=\"border: 1px solid #ddd; text-align: left; margin-left: 15px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><b>Nominal Share Capital<\/b><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><b>Applicable Fees in (Rs)<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Up to 30 days<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">2 times of normal fees<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Above 30 but not exceeding 60 days<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">4 times of normal fees<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Above 60 days but not exceeding 90 days<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">6 times of normal fees<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Above 90 days but not exceeding 180 days<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">10 times of normal fees<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">Above 180 days<\/span><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><span style=\"font-weight: 400;\">12 times of normal fees<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of Content Legal Provision for Commencement of Business Attachments of the e-form Additional fee (in case the form is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":40406,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[70],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Commencement of Business \u2013 Form INC-20A - Goyal Mangal &amp; 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