Commencement of Business
It is mandatory for the company to file Form 20A with 180 of Incorporation as declaration for commencement of Business.
Filing of Declaration for Commencement of Business
File Declaration for Commencement of Business for ₹990/- Only (Inclusive of Government Fees and taxes)
Every company needs to file with the ROC a declaration for commencement of business within 180 days of incorporation. This declaration confirms that the subscriber to the memorandum has paid the value of the shares.
In case of any default for non compliance there is penalty of ₹50,000 on the company and ₹1,000 per day on the officers subject to the maximum of ₹1,00,000.
Where no declaration has been filed with the Registrar within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may initiate action for the removal of the name of the company from the register of companies.
Note Down The Documents Required To File Declaration for Commencement of Business
- Certificate of Incorporation
- Subscribers proof of payment for value of shares (Bank Statement of the Company’s current account)
Companies Which Are Not Required To File Form 20A
The following companies are not required to file Form 20A:
- Companies incorporated before 2 November 2018 ( i.e before the commencement of the Companies (Amendment) Ordinance, 2018).
- Companies incorporated after 2nd November 2018 without share capital.
FAQs for Filing Declaration of Commencement of Business
Form 20A needs to be filed within 180 days from the date of incorporation.
Yes, If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.