The Ministry of Corporate Affairs (MCA) mandates that all companies declare the commencement of business within 180 days of incorporation. This declaration is filed using the INC-20A form. The company must obtain a certificate of commencement of business before it can start its business operations. To verify the current limit, please check the MCA website.
What is INC-20A and its purpose?
The INC-20A form is a declaration by the directors that the company has filed a verification of its registered address with the Registrar of Companies (RoC) and has obtained a certificate of commencement of business. The purpose of this form is to ensure that the company has complied with all the necessary requirements before starting its business operations.
Documents required for INC-20A filing
The following documents are required to file the INC-20A form:
- Verification of registered address (e.g., utility bills, rent agreement)
- Certificate of incorporation
- Memo and Articles of Association
- Director's identification and address proof
- Bank account statement or proof of deposit of subscription money
Bank account statement and proof of deposit
A bank account statement or proof of deposit of subscription money is required to be filed with the INC-20A form. This is to ensure that the company has received the minimum subscription amount as specified in the memo and articles of association.
| Particulars | Requirements |
|---|---|
| Minimum subscription amount | As specified in the memo and articles of association (verify the current figure) |
| Bank account statement | Statement showing the deposit of subscription money |
| Proof of deposit | Proof of deposit of subscription money, such as a deposit slip or bank receipt |
Penalty for non-filing of INC-20A
If a company fails to file the INC-20A form within the specified time limit of 180 days, it may be liable to pay a penalty. The penalty for non-filing of INC-20A is as per the Companies Act, 2013, and the rules made thereunder.
The most important thing to note is that the company cannot start its business operations until it has filed the INC-20A form and obtained the certificate of commencement of business.
Consequences of non-compliance
If a company fails to comply with the requirements of the INC-20A form, it may face the following consequences:
- Penalty for non-filing of INC-20A
- Delay in commencement of business operations
- Non-compliance with the Companies Act, 2013, and the rules made thereunder
Frequently Asked Questions
What is the time limit for filing INC-20A?
The time limit for filing INC-20A is within 180 days of incorporation.
What are the consequences of non-filing of INC-20A?
The consequences of non-filing of INC-20A include penalty, delay in commencement of business operations, and non-compliance with the Companies Act, 2013, and the rules made thereunder.
What documents are required for INC-20A filing?
The documents required for INC-20A filing include verification of registered address, certificate of incorporation, memo and articles of association, director's identification and address proof, and bank account statement or proof of deposit of subscription money.
The bottom line
In conclusion, the INC-20A form is a critical document that declares the commencement of business by a company. It is essential to file this form within the specified time limit to avoid penalties and ensure compliance with the Companies Act, 2013, and the rules made thereunder.
This is general information, not professional advice — confirm the current position for your specific case before acting.
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