Obtain the Commencement of Business Certificate by filing Form INC 20A with Instant Professionals at INR 2299/- only.
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The newly rolled out and most discussed among the corporate is Form INC 20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.
Form INC 20 A(Commencement of Business Certificate):
Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.
On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from the date of incorporation of the company.
Important note: MCA has now provided an additional time limit of 180 days for filing of the aforesaid declaration. It means all the newly incorporated companies can file form INC-20A within a period of 360 days from the date of its incorporation.
Government Fees for Form INC 20 A (Commencement of Business Certificate):
| Nominal Share Capital | Applicable Fees in (Rs.) |
|---|---|
| Where share capital is less than 1,00,000 | 200 |
| 1,00,000 or above but not exceeding 4,99,999 | 300 |
| 5,00,000 or above but not exceeding 24,99,999 | 400 |
| 25,00,000 or above but not exceeding 99,99,999 | 500 |
| 1,00,00,000 or above | 500 |
Form INC 20 A late filing fees (Commencement of Business Certificate):
| Period of delay | late fees |
|---|---|
| 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 |
Penalty for Form INC 20 A for Commencement of Business:
Consequences of non-filing of Form-INC-20A may create hindrance for companies to start their business and also while borrowing of money. The company would be liable to a Penalty for late filing the Form INC-20A if it exceeds 360 days of from the date of incorporation.
Read more here on late filing fees for INC 20A.
Suggested Read: Secretarial Compliances Applicable for a Private Limited Company and cost of compliance
Instant Professionals is platform for professionals and taxpayers, which helps end-to-end incorporation, Secretarial compliances, Taxation and Management consultancy services to clients in India and abroad. Filing of E-Form INC-20A is easy, seamless, cheapest and quickest with Instant Professionals ! Get in touch with Instant Professionals Compliance Partner to understand what is E – Form INC-20A filing process and whether you need to file E – Form INC-20A. You may get in touch with our compliance Partner on 8209785294 or email info@instantprofessionals.in for consultation.
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Easy EMI's | Transparent Pricing
Easy EMI's | Transparent Pricing
On filing the E-Form INC-20A within 180 days, the company will then be eligible to exercise the borrowing powers. Non filing of which may stop the company from borrowing the money.
If the company files the form INC-20A within 360 days, the company can be safeguarded from heavy penalties i.e Rs. 50,000 for company & for directors Rs.1000 per day of default up to a maximum of Rs.1 lakh.
All the informations relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility