Certificate of Commencement of Business form 20A

All important associations on or after 2 November 2018 are required to provide a certificate of beginning of operation in accordance with the Companies (Amendment) Ordinance 2018. Within 180 days of the company's incorporation date, the directors must file a statement on Form 20A. Due to the severe penalties for not filing, this is one of the greatest crucial guidelines to follow.

Businesses that are exempt from submitting Form 20A

The following businesses are exempt from submitting form 20A:

1. Businesses that were established before November 2, 2018 (i.e., before the Companies (Amendment) Ordinance, 2018)

2. businesses founded after November 2, 2018, without a share capital.

The deadline for submitting Form 20A

Every business that must submit Form 20A must do so 180 days after establishment.

Technique and requirements

Within 180 days after the date of formation, a certificate of business commencement must be obtained, and an accompanying eForm must be submitted to the relevant ROC (Registrar Of Companies).

A Board Resolution must be included in the eForm itself as a declaration from the directors required by section 10A. A proof of deposit of the subscribers' fully paid-up share capital must also be included in the eForm.

A corporation must get any necessary registrations or approvals from sectoral authorities including the Securities and Exchange Board of India and Reserve Bank of India, among others, if it intends to accomplish any objectives that do. Before submitting the eForm to the ROC, it must be validated and certified by a working professional (Registrar Of Companies).

Fees for Inaction

The sanctions for non-compliance are extremely severe, which was done on purpose to reduce the proportion of shell corporations formed. Following are the penalties for non-compliance:

Penalty to be levied on the company:

If the firm does to meet the aforementioned condition, a fine of Rs 50,000 will be assessed.

a fine will be imposed on the officers: Every such agent in default shall be responsible to a penalty of Rs 1,000 per day for each day when the default continues subject to a maximum of Rs 1,00,000.

Business strike-off: After 180 days of incorporation, if the Registrar has reason to suspect that the firm is not doing any business or operations, the Registrar may strike the firm's name from the Register of Companies.

How Do I Complete the Form?

The INC-20A form is fillable online. On the MCA website, you can access and download the E-form.

https://www.mca.gov.in/MinistryV2/companyformsdownload.html

You will receive an instruction bundle with the E-form that will help you fill it out without difficulty. You must accurately complete the following information in the electronic form:

Company's Corporate Identity Number (CIN) The software will display the identity, registered office address, and email address of the company when you enter the CIN of the firm and click the pre-fill button.

Choose whether or not a relevant regulator is in charge of your company's business. If you choose yes, you will be prompted to provide the name of the regulatory body, the registration number, and the date on which the registration was approved.