Business Commencement and Declaration
Introduction
As per the Companies (Amendment) Ordinance 2018, there is a requirement for all the companies registered on or after 2 November 2018 to file a certificate of commencement of business. Form 20A is a declaration filed by the directors within 180 days of the date of incorporation of the company. This is one of the most important compliances to follow as the penalties for non-filing is extremely high.
The requirement of commencement compliance in a company
A certificate of business commencement has to be obtained within 180 days from the date of incorporation and an eForm INC 20A has to be filed with the concerned ROC (Registrar of Companies) regarding the same. A declaration under section 10A from the directors has to be provided in the form INC 20A of a Board Resolution in the eForm INC 20A itself. In addition to this, a proof of deposit of the paid-up share capital by the subscribers also needs to be attached in the eForm INC 20A. If a company pursues objects requiring registration or approval from any sectoral regulators such as The Reserve Bank of India and Securities and Exchange Board of India etc, then it shall obtain such registration or approval along with the attached declaration. The eForm INC 20A has to be verified and certified by a practising professional before filing with the ROC (Registrar of Companies).
Process of submission of certificate of commencement of Business
- There are two (2) situations, stated below: -
- Filing of form within one hundred and eighty (180) days: In this case file the E-form 20A with the fees depending upon the paid-up Share capital of the company along with a proof of deposit of the paid-up share capital by the subscribers has been paid to the company.
- Filing of form after one hundred and eighty (180) days: In this case, we need to attach an application for condonation of delay for Form INC-20A with brief reasons for delay and other important merits of case. After that Follow up with the concerned Registrar is required until the form is approved by the Registrar.
Documents Required to file INC 20A
- DSC of all the authorised director
- 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
