MCA Form INC-20A: Declaration of Commencement of Business

MCA Form INC-20A: Declaration of Commencement of Business. Section and Provisions
Under Section 10A(1)(a) of the Companies Act, 2013 read with Rule 23A of the Companies (Incorporation) Rules, 2014.
Section 10A:
(1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) A declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) The company has filed with the Registrar a verification of its registered office as provided in subsection (2) of section 12.
(2) 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 not exceed one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
(3) Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) 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, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.]
Purpose
A company with a share capital must file a declaration for commencement with the Registrar of Companies (ROC). This declaration, submitted by a director, is part of the INC-20A application and should be filed within 180 days from the date of the company's incorporation.
Key Information:
The Form is available on the MCA version 3.
Documents Required:

Declaration regarding the commencement of Business

Board Resolution for filing of INC-20A.

Bank Statement showing receipt of subscription money.

Subscriber Sheet

Photograph of Registered Office showing the external building and inside office also showing therein at least one Director/ KMP, for filing the same.

Timeline
The INC-20 A is required to be filed within 180 days from the date of incorporation.
Fees

Nominal Share Capital

Fee applicable

Less than 1,00,000

Rupees 200

1,00,000 to 4,99,999

Rupees 300

5,00,000 to 24,99,999

Rupees 400

25,00,000 to 99,99,999

Rupees 500

1,00,00,000 or more

Rupees 600

Additional Fees

Period of delays

All forms

Up to 30 days

2 times of normal fees

More than 30 days and up to 60 days

4 times of normal fees

More than 60 days and up to 90 days

6 times of normal fees

More than 90 days and up to 180 days

10 times of normal fees

More than 180 days

12 times of normal fees

Key Considerations:

It is important to keep in mind while filing INC-20A that the photo of the registered office is clear and the details mentioned in the nameplate (Name of the Company, CIN, Address of the Registered office, email ID, contact number) are legible enough to read and attach the photograph of the director whose Director Identification Number (DIN) is required to be mentioned.

Please read the instructions and guidelines carefully before filling out online application forms.

Please attach the required mandatory supporting documents in the specified format only.

Please ensure that applicants for the webform are registered at the MCA portal before filing the webform.

Please note that the Company for which the webform is being filed shall be registered with MCA and shall have a valid CIN.

Please ensure that the business user is associated with the company or authorized by the company to e-file on its behalf (applicable to other business users).

Please ensure that the signatories have an approved DIN or valid PAN or valid Membership number.

Please ensure that the Practicing professional signing the form shall have a valid membership number.

Please ensure that the DIN of the director signing the webform is not flagged for ‘disqualification’.

Please ensure that no other webform INC-20A is pending for approval/ approved/ pending for payment against the CIN.

Please ensure that the registered office address of the company is updated via Form No. INC-22 or Form No. SPICe+ Part B.

Please note that this form can be filled in only by a company having a share capital. ? Please ensure that the status of the company is ‘Active’.

Please ensure that the form shall not be signed by the director of the company in respect of whom Form No. DIR-12 is pending for approval.

Please ensure that the DSC attached in the webform is registered on the MCA portal against the DIN/PAN/Membership number as provided in the webform.

Please note that the signing authority of the webform shall have valid and non-expired/non-revoked DSC.

If the space within any of the fields is not sufficient to provide all the information, then additional details can be provided as an optional attachment to the web form.

Please check for any alerts that are generated using the “Notifications and alerts” function under the ‘My Workspace’ page in the FO user dashboard on the MCA website.

MCA Help-Kit

Section and Provisions

Under Section 10A(1)(a) of the Companies Act, 2013 read with Rule 23A of the Companies (Incorporation) Rules, 2014.

Section 10A:

(1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless—

(a) A declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and

(b) The company has filed with the Registrar a verification of its registered office as provided in subsection (2) of section 12.

(2) 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 not exceed one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.

(3) Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) 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, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.]

Purpose

A company with a share capital must file a declaration for commencement with the Registrar of Companies (ROC). This declaration, submitted by a director, is part of the INC-20A application and should be filed within 180 days from the date of the company's incorporation.

Key Information:

The Form is available on the MCA version 3.

Documents Required:

Declaration regarding the commencement of Business
Board Resolution for filing of INC-20A.
Bank Statement showing receipt of subscription money.
Subscriber Sheet
Photograph of Registered Office showing the external building and inside office also showing therein at least one Director/ KMP, for filing the same.

Timeline

The INC-20 A is required to be filed within 180 days from the date of incorporation.

Fees

Nominal Share Capital	Fee applicable
Less than 1,00,000	Rupees 200
1,00,000 to 4,99,999	Rupees 300
5,00,000 to 24,99,999	Rupees 400
25,00,000 to 99,99,999	Rupees 500
1,00,00,000 or more	Rupees 600

Additional Fees

Period of delays	All forms
Up to 30 days	2 times of normal fees
More than 30 days and up to 60 days	4 times of normal fees
More than 60 days and up to 90 days	6 times of normal fees
More than 90 days and up to 180 days	10 times of normal fees
More than 180 days	12 times of normal fees

Key Considerations:

It is important to keep in mind while filing INC-20A that the photo of the registered office is clear and the details mentioned in the nameplate (Name of the Company, CIN, Address of the Registered office, email ID, contact number) are legible enough to read and attach the photograph of the director whose Director Identification Number (DIN) is required to be mentioned.
Please read the instructions and guidelines carefully before filling out online application forms.
Please attach the required mandatory supporting documents in the specified format only.
Please ensure that applicants for the webform are registered at the MCA portal before filing the webform.
Please note that the Company for which the webform is being filed shall be registered with MCA and shall have a valid CIN.
Please ensure that the business user is associated with the company or authorized by the company to e-file on its behalf (applicable to other business users).
Please ensure that the signatories have an approved DIN or valid PAN or valid Membership number.
Please ensure that the Practicing professional signing the form shall have a valid membership number.
Please ensure that the DIN of the director signing the webform is not flagged for ‘disqualification’.

Please ensure that no other webform INC-20A is pending for approval/ approved/ pending for payment against the CIN.
Please ensure that the registered office address of the company is updated via Form No. INC-22 or Form No. SPICe+ Part B.
Please note that this form can be filled in only by a company having a share capital. ? Please ensure that the status of the company is ‘Active’.
Please ensure that the form shall not be signed by the director of the company in respect of whom Form No. DIR-12 is pending for approval.
Please ensure that the DSC attached in the webform is registered on the MCA portal against the DIN/PAN/Membership number as provided in the webform.
Please note that the signing authority of the webform shall have valid and non-expired/non-revoked DSC.
If the space within any of the fields is not sufficient to provide all the information, then additional details can be provided as an optional attachment to the web form.
Please check for any alerts that are generated using the “Notifications and alerts” function under the ‘My Workspace’ page in the FO user dashboard on the MCA website.