Form INC 20A: Declaration for Commencement of Business in India

What is Form INC 20A

Form INC 20A is a legal compliance mandated by Section-10A of the Companies Act, 2013. Form INC 20A is a mandatory declaration which is filed online by the directors of the company with Registrar of Companies (ROC) that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him. You can check the last page of Memorandum of Association (MOA) of the company to check the list of the subscriber. In short Form INC 20A is a Declaration of Commencement of Business by the company.

Form INC 20A Applicability

Form INC 20A is applicable to all companies having a share capital and registered after 2nd November, 2018 under the Companies Act, 2013. For your easy understanding I have given below the list of companies on which Form INC 20A is applicable;

• OPC Private Limited Company.
• Private Limited Company.
• Public Limited Company.
• Section-8 Company.

Companies not required to file INC 20A

Following companies are not required to file Form INC 20A;

• Companies incorporated prior to 2nd November, 2018.
• Companies registered without Share Capital.
• Government companies exempted by special provisions.
• Companies not registered under Companies Act, 2013 like Proprietorship, Partnership and LLP company.

Form INC 20A Due Date

The due date for filing Form INC 20A is within 180 days from the date of registration of the company. Date of Incorporation/Registration of company is mentioned in the Certificate of Incorporation (COI) or PAN of the company. Timely submission ensures that companies avoid penalties and comply with the operational guidelines stipulated by the RoC.

Form INC 20A Fees

Form INC 20A fees depends on the authorized capital of the company. A table showing Form INC 20A filing fee is given below;

Form INC 20A Late Fees / Penalty

Late Fee is applicable when Form INC 20A is not filed within 180 days from the date of registration of comany. In case of late filing of INC 20A Normal Fee + Late Fee will be paid. Late fee is applicable based on the below mentioned table;

Example to calculate INC 20A Normal Fee and Late Fee:

Scenario:

• Date of Incorporation: January 1, 2024
• Authorized Share Capital: ₹1,00,000
• Actual Filing Date: September 12, 2024
• Due Date for Filing Form INC 20A: June 29, 2024 (180 days from the date of incorporation).
• Delay: From June 30, 2024, to September 12, 2024 = 75 days.
  
  

  Step 1: Calculate the Normal Filing Fee

  For an authorized share capital of ₹1,00,000, the normal fee for filing Form INC 20A is ₹200/-.

  Step 2: Determine the Late Fee Multiplier

  The late fee is based on the period of delay:

• Delay is 75 days, which falls in the range of more than 60 days and up to 90 days.
• Late fee multiplier: 6 times the normal fee.
  

  Step 3: Calculate the Total Fee (Normal Fee + Late Fee)

  1. Normal Fee: ₹200/-
  2. Late Fee: 6 × ₹200 = ₹1,200/-
  3. Total Fee: ₹200 + ₹1,200 = ₹1,400/-

If a company with an authorized capital of ₹1,00,000 fails to file Form INC 20A by June 29, 2024, and instead files it on September 12, 2024, the total filing fee will be ₹1,400. This includes the standard fee of ₹200 and the late penalty of ₹1,200 for a 75-day delay.

Timely filing would have saved the company from incurring the late fee of ₹1,200.

Consequences of Non filing of INC 20A

Failing to submit Form INC 20A can lead to significant consequences, such as:

1. Legal Penalties: Fines up to ₹50,000 for the company and ₹1,000 per day for each director.
2. Operational Limitations: Restrictions on raising capital, entering into contracts, and conducting business transactions by the company.
3. Potential Deregistration: Continued non-compliance may lead to company de-registration by the ROC.

How to File Form INC 20A

Form INC 20A can be filed by the Chartered Accountant, Cost Accountant or Company Secratery in whole time practice. Following Information/Documents are required to fill and file Form INC 20A;

• Corporate Identity Number (CIN).
• Name of the Company.
• Registered Office Address.
• Latitude & Longitude of the Registered Office.
• Email Id of the Company.
• Bank Statement highliting the credit of Capital Amount of each subscriber.
• Photograph of Registered Office showing external building and inside office also
  showing therein at least one Director/ KMP
• Copy of Board Resolution for filing Form INC 20A
• Digital Signature of Director authorize to file the form.
• Digital Signature and Membership Number of the Chartered Accountant.

  Appointment of CA as auditor is mendatory in company within 30 days from the date of registration therefore practically appointed CA certify and file Form INC 20A.

Format of Form INC 20A

Form INC 20A is a 3 pages form and each page of the form is required details to be filled. Images of the Form INC 20A is given below easy understanding;

Page-1 of Form INC 20A

Page-2 of Form INC 20A

Page-3 of Form INC 20A

CONCLUSION

Filing Form INC 20A is one of the first compliance after regsitration of company. It is very important compliance because without filing this form company can not start business operations. Company is registered to do the business therefore delaying in filing Form INC 20A means you are delaying the business operations of the company and also risk of late fee and penalty and even de-registration by the ROC after 180 days is there.

Pro Advise: Finalise a expert CA as auditor of the company and start outsourced all your legal compliance for peace of mind and focus on your business. CharteredHelp is one of the best ROC compliance consulting firm.

FAQs About Form INC 20A

1. Who needs to file Form INC 20A?
   All companies incorporated after November 2, 2018, under the Companies Act, 2013.

2. What is the deadline for filing INC 20A?
   Within 180 days of incorporation.

3. What happens if I don’t file INC 20A?
   Non-filing results in fines, operational restrictions, and potential deregistration.

4. Can a company start business operations without filing INC 20A?
   No, the certificate is mandatory for starting operations.

5. How can I download Form INC 20A?
   From the official MCA portal.

6. What are the fees for filing INC 20A?
   Fees depend on the authorized share capital, starting at ₹200 for smaller companies.