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INC-20A: Commencement of Business Certificate in India
Introduction
In the Indian corporate regulatory environment, INC-20A is a declaration filed with the Ministry of Corporate Affairs (MCA). It is a declaration for the commencement of business, mandated by the Companies (Amendment) Ordinance 2018. This article provides an in-depth look at INC-20A, its implications for companies, and the process involved in filing it.
Understanding INC-20A
INC-20A, also known as the Commencement of Business Certificate, is a declaration that must be filed by a director of a company incorporated in India after 2018. It confirms that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them.
Significance of INC-20A
Legal Requirement: It is a compliance requirement under the Companies Act, 2013 for companies to declare the commencement of their business operations.
Verification of Capital: It ensures that the company has the minimum paid-up capital as prescribed by the law.
Activation of Bank Account: The certificate is a prerequisite for the company to commence any business transactions.
Filing Process for INC-20A
Preparation: Ensure that all subscribers have paid their share capital as stated in the MOA.
Bank Statement: Obtain a bank statement of the company’s account showing receipt of subscription money.
Filing: File form INC-20A online on the MCA portal within 180 days of incorporation.
Attachments: Attach the bank statement as proof of payment for share capital.
Verification: The form must be verified and digitally signed by a director and a chartered accountant/company secretary/cost accountant.
Payment of Fees: Pay the requisite government fees for filing.
Penalties for Non-Compliance
Failing to file INC-20A within the prescribed time can lead to penalties for the company and its officers. The company may also be barred from commencing its business operations.
Conclusion inc 20a
The introduction of the INC-20A form serves as a regulatory check to ensure that companies established in India have adequate capital to begin operations. The timely filing of this certificate is crucial for companies to legally commence business, open a current account, and ensure regulatory compliance. It is an essential step in the journey of a corporate entity that establishes its readiness to enter the business arena.,
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