What is the time limit for INC 20A, MCA imposes Penalty for Delay in Filling INC-20A

What is the time limit for INC 20A, MCA imposes Penalty for Delay in Filling INC-20A. In this article we will take you through the Adjudication order in the matter of Infocreaon Solutions Private Limited incorporated under the jurisdiction of the Southern Region (Chennai) which mandates to file a declaration under Section 10A of the Companies Act, 2013. This section mandates to file a declaration in Form INC-20A within 180 days of its incorporation. It refers that every company with share capital must declare that subscribers to the memorandum have paid the value of shares agreed upon. Failure to comply these requirements can attract penalties under 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.
Applicable Provision – Section 10A of the Companies Act, 2013
The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the adjudication of penalties for defaulting in filling of its declaration in the E form INC-20A as per section 10A of the companies Act 2013. The matter was brought before the concerned Regional Director, Chennai, for consideration
Section 10A states that a company incorporated after the commencement of the Companies (Amendment) Act, 2019, shall not commence business or exercise any borrowing powers unless:

A declaration is filed by a director within 180 days of incorporation, confirming that every subscriber to the memorandum has paid the value of shares agreed upon.

The company has filed verification of its registered office with the ROC.

Non-compliance with this provision results in penalties imposed on the company and its officers in default.
Facts of the Case
Infocreaon Solutions Private Limited filed an appeal under section 454 (5) of the companies act 2013 against the adjudication order passed by the ROC Kerala for default in compliance with requirements of section 10A of the companies Act 2013.
The appellant by a letter dated 16.09.2020 addressed to this Directorate, requested to permit the Appellant to withdraw the appeal on the ground that the Appellant intends to avail the benefits of Companies Fresh Start Scheme 2020.
Accordingly, this appeal is dismissed as withdrawn with the liberty to refile, if necessary.
CCL Observation:
The adjudication order in the case of Infocreaon Solutions Private Limited highlights the significance of compliance with Section 10A of the Companies Act, 2013. The mandatory filing of Form INC-20A ensures that companies declare their initial capital infusion before commencing business operations. However, in this case company has claimed the benefit of CFSS 2020 and withdraw the appeal to get the benefit under this scheme.
Download MCA Adjudication Order

In this article we will take you through the Adjudication order in the matter of Infocreaon Solutions Private Limited incorporated under the jurisdiction of the Southern Region (Chennai) which mandates to file a declaration under Section 10A of the Companies Act, 2013. This section mandates to file a declaration in Form INC-20A within 180 days of its incorporation. It refers that every company with share capital must declare that subscribers to the memorandum have paid the value of shares agreed upon. Failure to comply these requirements can attract penalties under 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.

Applicable Provision – Section 10A of the Companies Act, 2013

The case involves an appeal under Section 454(5) of the Companies Act, 2013, concerning the adjudication of penalties for defaulting in filling of its declaration in the E form INC-20A as per section 10A of the companies Act 2013. The matter was brought before the concerned Regional Director, Chennai, for consideration

Section 10A states that a company incorporated after the commencement of the Companies (Amendment) Act, 2019, shall not commence business or exercise any borrowing powers unless:

A declaration is filed by a director within 180 days of incorporation, confirming that every subscriber to the memorandum has paid the value of shares agreed upon.
The company has filed verification of its registered office with the ROC.

Non-compliance with this provision results in penalties imposed on the company and its officers in default.

Facts of the Case

Infocreaon Solutions Private Limited filed an appeal under section 454 (5) of the companies act 2013 against the adjudication order passed by the ROC Kerala for default in compliance with requirements of section 10A of the companies Act 2013.

The appellant by a letter dated 16.09.2020 addressed to this Directorate, requested to permit the Appellant to withdraw the appeal on the ground that the Appellant intends to avail the benefits of Companies Fresh Start Scheme 2020.

Accordingly, this appeal is dismissed as withdrawn with the liberty to refile, if necessary.

CCL Observation:

The adjudication order in the case of Infocreaon Solutions Private Limited highlights the significance of compliance with Section 10A of the Companies Act, 2013. The mandatory filing of Form INC-20A ensures that companies declare their initial capital infusion before commencing business operations. However, in this case company has claimed the benefit of CFSS 2020 and withdraw the appeal to get the benefit under this scheme.