Commencement of Business

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Procedure for Form INC-20A

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FORM INC-20A has come into force wherein after rule 23, under which“Rule 23A has been inserted” stating that the declaration to obtain a certificate of commencement of business is required to be filed in Form INC- 20A.

Those companies who have been incorporated after the commencement of the Companies (Amendment) Ordinance, 2018, i.e 02-11-2018, and having a share capital shall not commence any business or exercise any borrowing powers unless-

FORM INC-20A must be filed with the Registrar by the director within 180 days of commencing business, certifying that all subscribers to the memorandum have paid the value of the shares he agrees to take at the time of the declaration. Verification of the company's registered office must also be filed with the Registrar.


Paperwork Needed to Submit Form INC-20A

The company's bank statement includes all credit entries for subscription receipts.
Money was collected from all Memorandum of Association subscribers.
Verified email, CIN address, full name, and complete company address. The company's operations are governed by any sectoral regulator.
Subscribers' evidence of payment.
A registration certificate was issued by RBI.
Certification for digital signatures.
Identification verification and address records, such as ration cards, passports, voter IDs, and Aadhar cards.
A letter of confirmation from each director.

Process for the Commencement of Business

1. Logging onto the MCA site first and filling out the online form is the first step. You can also download the form and submit it to the registered office.

2. You must complete Form INC-20A to fulfill the requirements for declaring the start of business.

3. After providing the form with the necessary information, you must attach the necessary supporting documentation.

4. Complete the Declaration form and DIN Certification to let the country know which expert certified your form.

5. The Digital Signature Certificate for the certifying professional and the DSE of the director must then be included.

6. Next, review the full form before selecting the Pre scrutiny option.

7. After submitting the form and paying the costs, you will receive an SRN.

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Frequently Asked Questions

In the case of Non-Compliance, that company is not allowed to start any business activity and exercise any borrowing power under section 10A.

In case of any default, the following penalty will be imposed:
A Penalty of Rs. 5000 will be levied on the Company. A Penalty of Rs. 10000 per day on the Director of the company will be levied. The amount of this penalty will reach up to Rs. 100000.


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