What is mandatory filling after incorporation of Company?

What is mandatory filling after incorporation of Company?. You should know what is the next step after incorporation of a company or Registration of Private Limited in India. After the successful company registration, Post incorporation compliance with statutory requirements at MCA, Income Tax, GST or other authorities are also important to commence business operations in India. One such mandatory requirement is the filing of e-Form INC-20A, a declaration of commencement of business under Section 10A of the Companies Act, 2013, and this INC-20A filing serves as confirmation that the subscribers or first shareholders to the memorandum have paid the value of their shares and that the company has verified its registered office. Failure to file INC-20A within the stipulated timeline restricts the company from commencing its business activities or exercising borrowing powers means loan from directors also not allowed before filing INC-20A, making it a major MCA compliance obligation for newly incorporated entities or private limited company in India.
What is section 10A of the company’s Act 2013 talks about that: 
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 declaration is filed by a director within a period of one hundred and eighty days (180 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

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

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.

To know more regarding commencement of business as per section 10A of the companies Act 2013 you can refer to this article based on filling in the e-form INC-20A and commencement of business.
Facts About of the case:
That the company was incorporated on 16.11.2021 and in terms of the provision of Section 10A, company was required to file form INC-20A on or before 15.05.2022 (i.e. Within 180 days from the date of incorporation).
In this MCA adjudication order, the company failed to file the said e-form on due date and filing was made vide SRN on 03.06.2022 with delay of 19 days.
Accordingly, a show cause notice for the default was issued to company and its officer on 05.09.2024 and a response to which was received on 17.09.2024 wherein the company has re-iterated the facts stated in the application and assures that in future, they will be more vigil and conscious and shall ensure due care in complying with the provisions of law. They also requested for personal hearing.
Adjudication of Penalty by ROC
Taking into account the facts of the case including the submission made, it is noted that there is a violation of Section 10A (1) of the Companies Act 2013 and the same has been admitted by the company and its officers. The penal provision for the default is provided under Section 10A (2) of the Act.
Considering the fact, circumstances and submissions made by the authorised representative on the behalf of the company ROC impose penalty on the Company and its officers in default under section10(A) of the Companies Act2013 for violation as follows
The subject company does not get covered under the purview of small company as defined u/s 2(85) of the Companies Act 2013. Hence, the benefit of section 446B would not be applicable on the company

Violation

To whom penalty imposed

Period of default

Amount of penalty imposed

Penalty Imposed

Violation of Section 10 (A)

On Company

19 days

50,000

On 1st director

19 days

1000*19= 19,000

19,000

On 2nd director

19 days

1000*19= 19,000

19,000

Any Benefit of Section 446B of Companies Act
Section 446B of the Companies Act, 2013 provides a significant relief mechanism for small companies and start-ups by reducing the penalty burden for certain non-compliances. Under this provision, if a small company or a start-up commits a default for which a penalty is prescribed under the Companies Act 20-13, the penalty imposed shall not be more than half of the specified penalty, subject to a maximum limit.
In the adjudication order of Emperium Constructions Private Limited company does not get covered under the purview of small company as defined u/s 2(85) of the Act. Hence, the benefit of section 446B of the Companies Act 2013 would not be applicable on the company.
CCL Observation:
In the present case, the company failed to comply with the mandatory requirement under Section 10A (1) of the Companies Act, 2013 post company registration, by not filing Form INC-20A within the prescribed period of 180 days from the date of incorporation and the delay in filing the required declaration resulted in the issuance of a show cause notice, leading to an adjudication of penalty by ROC MCA under Section 10A (2). While the company and its officers admitted the default and assured future compliance, the law mandates penalties for such violations. Furthermore, the company does not qualify as a small company as per Section 2(85) of the Act, and therefore, the relaxation provided under Section 446B, which allows a reduced penalty for small companies and start-ups recognized under DPIIT, is not applicable. Consequently, the prescribed penalties were imposed without any reduction, Hence it was advisory for the company that should apply for the startup recognition under DPIIT to avail the benefits given under the 466B for lesser penalty provisions. 
Download ROC Order

You should know what is the next step after incorporation of a company or Registration of Private Limited in India. After the successful company registration, Post incorporation compliance with statutory requirements at MCA, Income Tax, GST or other authorities are also important to commence business operations in India. One such mandatory requirement is the filing of e-Form INC-20A, a declaration of commencement of business under Section 10A of the Companies Act, 2013, and this INC-20A filing serves as confirmation that the subscribers or first shareholders to the memorandum have paid the value of their shares and that the company has verified its registered office. Failure to file INC-20A within the stipulated timeline restricts the company from commencing its business activities or exercising borrowing powers means loan from directors also not allowed before filing INC-20A, making it a major MCA compliance obligation for newly incorporated entities or private limited company in India.

What is section 10A of the company’s Act 2013 talks about that:

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 declaration is filed by a director within a period of one hundred and eighty days (180 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
The company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12
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.

To know more regarding commencement of business as per section 10A of the companies Act 2013 you can refer to this article based on filling in the e-form INC-20A and commencement of business.

Facts About of the case:

That the company was incorporated on 16.11.2021 and in terms of the provision of Section 10A, company was required to file form INC-20A on or before 15.05.2022 (i.e. Within 180 days from the date of incorporation).

In this MCA adjudication order, the company failed to file the said e-form on due date and filing was made vide SRN on 03.06.2022 with delay of 19 days.

Accordingly, a show cause notice for the default was issued to company and its officer on 05.09.2024 and a response to which was received on 17.09.2024 wherein the company has re-iterated the facts stated in the application and assures that in future, they will be more vigil and conscious and shall ensure due care in complying with the provisions of law. They also requested for personal hearing.

Adjudication of Penalty by ROC

Taking into account the facts of the case including the submission made, it is noted that there is a violation of Section 10A (1) of the Companies Act 2013 and the same has been admitted by the company and its officers. The penal provision for the default is provided under Section 10A (2) of the Act.

Considering the fact, circumstances and submissions made by the authorised representative on the behalf of the company ROC impose penalty on the Company and its officers in default under section10(A) of the Companies Act2013 for violation as follows

The subject company does not get covered under the purview of small company as defined u/s 2(85) of the Companies Act 2013. Hence, the benefit of section 446B would not be applicable on the company

Violation	To whom penalty imposed	Period of default	Amount of penalty imposed	Penalty Imposed
Violation of Section 10 (A)	On Company	19 days	50,000	50,000
	On 1st director	19 days	1000*19= 19,000	19,000
	On 2nd director	19 days	1000*19= 19,000	19,000

Any Benefit of Section 446B of Companies Act

Section 446B of the Companies Act, 2013 provides a significant relief mechanism for small companies and start-ups by reducing the penalty burden for certain non-compliances. Under this provision, if a small company or a start-up commits a default for which a penalty is prescribed under the Companies Act 20-13, the penalty imposed shall not be more than half of the specified penalty, subject to a maximum limit.

In the adjudication order of Emperium Constructions Private Limited company does not get covered under the purview of small company as defined u/s 2(85) of the Act. Hence, the benefit of section 446B of the Companies Act 2013 would not be applicable on the company.

CCL Observation:

In the present case, the company failed to comply with the mandatory requirement under Section 10A (1) of the Companies Act, 2013 post company registration, by not filing Form INC-20A within the prescribed period of 180 days from the date of incorporation and the delay in filing the required declaration resulted in the issuance of a show cause notice, leading to an adjudication of penalty by ROC MCA under Section 10A (2). While the company and its officers admitted the default and assured future compliance, the law mandates penalties for such violations. Furthermore, the company does not qualify as a small company as per Section 2(85) of the Act, and therefore, the relaxation provided under Section 446B, which allows a reduced penalty for small companies and start-ups recognized under DPIIT, is not applicable. Consequently, the prescribed penalties were imposed without any reduction, Hence it was advisory for the company that should apply for the startup recognition under DPIIT to avail the benefits given under the 466B for lesser penalty provisions.