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Certificate of Commencement of Business
Before the declaration in Form, INC-20A is filed by a company the entire subscribed share capital as shown in the MOA of the company must be deposited in the bank account of the newly registered company. A Certificate of Commencement of Business is issued with the approval of the INC-20A and until then a company can not enter into any business activity, what so ever. The maximum time prescribed for filing of INC-20A is 180 days from the date of incorporation of the company.
The non-compliance has very serious effects on the company and it may be punishable with a fine of Rs. 50,000 and every officer in default is punishable with a fine of Rs. 1000/- per day for each day of default, however, the maximum punishment cannot be more than Rs. 1,00,000/- The company shall be closed if the Certificate of Commencement of Business is not Filed.
Points to Note about Filing of Form Number INC-20A
Process of obtaining Certificate of Commencement of Business
Frequently Asked Questions
The form INC-20A is the prescribed eform through which a company has to file a declaration before commencing the business operations of the company. This form has been notified on 25th January 2019, however, is applicable on all companies which have been incorporated on or after 2nd November 2018.
The Form INC-20A must be filed immediately after incorporation of the company as the company shall not be able to start any business activity as such. However, the last date of filing the same is fixed at 180 days from the date on which company got registered.
Yes, the general fee as prescribed under the rules are also applicable for filing the form INC-20A and the fee is based on the authorised capital of the company. Below is the list of the filing fee for the declaration for the certificate of commencement of business.
|SI. No||Authorised Capital (INR)||INR|
|1.||Less than 1,00,000||200|
|2.||1,00,000 to 4,99,999||300|
|3.||5,00,000 to 24,99,999||400|
|4.||25,00,000 to 99,99,999||500|
|5.||1,00,00,000 or more||600|
Yes, you have the option of filing the form INC-20A even if the due date is missed, however with an additional fee to be paid based on the delay of the number of days from the due date. Below table is for reference to calculate additional fee.
|Sl. No||Delay||Additional Fee as times of Normal filing fee|
|1.||Delay up to 30 Days||2 Times|
|2.||More than 30 days and up to 60 days||4 Times|
|3.||More than 60 days and up to 90 days||6 Times|
|4.||More than 90 days and up to 180 days||10 Times|
|5.||More than 180 days||12 Times|
The non-filing is punishable with a fine of Rs 50,000/- to be paid by the company and every officer in default which includes director is to pay Rs. 1000 for each day of non-compliance. However, the penalty shall not be more than Rs. 1,00,000/- for directors.
To file form INC-20A you need to attach a certified copy of the Bank Statement of the company where the paid-up capital has been received from the first subscribers of the MOA/Shareholders.