INC-20A FROM

INC-20A is a form prescribed under the Companies Act, 2013, used for filing the declaration for the commencement of business by a company incorporated in India. This form is mandatory for all companies incorporated after November 2, 2018, and before April 1, 2019. The purpose of filing the INC-20A form is to ensure that companies have obtained the necessary capital and have commenced their business operations within 180 days of their incorporation. It is aimed at preventing the misuse of the incorporation process by companies that are formed solely for the purpose of illegal activities or to defraud stakeholders.


Description

Key points regarding INC-20A: 

Timing: The form must be filed within 180 days from the date of incorporation of the company.

Declaration: The form requires a declaration from the directors of the company confirming that the company has received the minimum subscription as specified in the memorandum of association and that the company has complied with all the requirements of the Companies Act, 2013, related to the commencement of business.

Penalty for non-compliance: Failure to file the INC-20A form within the specified timeline can result in penalties for the company and its directors. Additionally, the company may be marked as "ACTIVE non-compliant" by the Registrar of Companies, which can restrict certain transactions for the company.

Exemptions: Certain types of companies, such as companies limited by guarantee or companies with no share capital, are exempt from filing the INC-20A form.

Overall, filing the INC-20A form is an important compliance requirement for newly incorporated companies in India, ensuring that they have commenced their business operations in accordance with the law. 


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