Date: 24 May 2024

Form INC-20A Declaration for Commencement of Business

Introduction (who is required to file INC- 20A)

As per Section 10A of Companies Act, 2013, Form INC-20A is a declaration of payment received from subscribers of memorandum which needs to be filed by a director of a company for commencing the business or exercising borrowing powers by the company and shall be verified by a company Secretary or a chartered Accountant or a cost Accountant in practice with registrar of companies (ROC).  

Time Limit to File form INC-20A

Form INC-20A to be filed within a period of 180 Days from date of Incorporation of the company.

Non-Applicability of Form INC-20A (Applicability of INC-20A)

Form INC-20A is not required to file in following two cases:
 
- Companies Incorporated before commencement of the Companies (Amendment) Ordinance,2018
 
- Companies not having share capital

Consequences of non-filing of Form INC-20A (INC 20A penalty)

There are very heavy penalties for non -compliance with section 10A i.e. non -filing of Form INC-20A within stipulated time. Non Compliance may also lead to removal of name of company from registrar of Companies. 
 
Following are the penalties for Non Compliance:
 
- Penalty on Company: A penalty of Rs. 50,000 will be levied on the Company for Non Compliance.  
 
- Penalty on Officers/Director: A penalty of Rs.1000 per day for each during default which such default continues subject to maximum Rs. 1,00,000 will be levied on defaulting officer/director.
 
-  Removal of Name of Company: if Form-INC-20A is not filed within 180 days and Registrar has reasonable cause to believe that company is not carrying any business or operations he may remove the name of company from register of companies. 

How to file Form INC-20A on V3 Portal ? 

Steps to file Form INC-20A on V3 MCA portal

 
Step 2: Go to MCA Services - Company e-filing- Information services- select INC-20A- Declaration for commencement of services 
 
Step 3: Fill the form and attach required attachment (for list of attachment refer below)
 
Step 4: Download form and affix digital signature
 
Step 5: Go to my application and select pending for action
 
Step 6: upload PDF and pay fees
 
Step 7: Track under processing or approved.

Attachment required for filing form INC-20A (Inc-20A Documents requirements)

- Office photo (external Building and Inside office with at least one Director) 
 
- Bank statement and Board resolution (for Format of resolution refer below)

Fees for filing Form INC-20A (INC 20 Fees)

Normal Fees

Authorised Share Capital Amount (Rs.)
Share Capital Less 1,00,000 200
Between 1,00,000 to 4,99,999 300
Between 5,00,000 to 24,99,999 400
Between 25,00,000 to 99,99,999 500
1,00,00,000 or above 600

Additional Fees (if Form is not filed within time i.e. 180 days) (INC 20 Late Fees)

No. of Days Amount (Rs.)
Up to 30 days 2 times of normal fees
Between 31 days to 90 days 4 times of normal fees
Between 91 days to 180 days 6 times of normal fees
Above 180 days 12 times of normal fees

MCA Fees Calculator: MCA Fees Calculator

Form INC-20A Board resolution

CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF XYZ  PRIVATE LIMITED HELD AT THE REGISTERED OFFICE OF THE COMPANY AT XXXXXXXXXXXXXXXXXXXXX ON XXth MARCH, 2024, AT 2:00 PM. 

“RESOLVED THAT pursuant to Section 10A of the Companies Act 2013, confirmation from the Board of Directors of the Company be and is hereby given that the Company has received the Subscribed money towards the Subscribed Capital of Rs. 1,00,000.00/- [Rupees One Lac Only].


“RESOLVED FURTHER THAT Mr. X , Director of the Company, be and is hereby authorized to sign the resolution and declaration and digitally sign e-Form INC-20A and file the same with Registrar of Companies, Delhi”.

Certified True Copy

For X PRIVATE LIMITED 
 
X Kumar

(Managing Director) 

(DIN: XXXXXXX)