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 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.
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 |
600 |
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 |
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.