Commenment of Business Mandatory Filing - For Commencement Of Business By Companies

MANDATORY TO SUBMIT DECLARATION FOR COMMENCEMENT OF BUSINESS BY COMPANIES REGISTERED ON OR AFTER 2nd DAY OF NOVEMBER, 2018:

Companies registered on or after November 02, 2018 is required to file the declaration for commencement of business with the Registrar of companies.

TIME LIMIT: The declaration for commencement of business shall be filled within 180 days from the date of getting CERTIFICATE OF INCORPORATION.

REQUIREMENT TO SUBMIT FORM INC-20A:

Bank Statement of the Company showing Initial capital Amount and signed by both the Directors of the Company with stamp.

PENALTY IF NOT FILED THE ABOVE MENTIONED FORM:

• Company is liable to pay Rs. 50,000
• Directors is liable to pay Rs. 1000 per day and maximum up to 1 lakh after expiration of 180 days from the date of registration.

CONSEQUENCES IF FORM IS NOT FILED WITHIN TIME-

• Company cannot start its business
• Company cannot borrow money
• Company may be closed by the Registrar of Companies.
• ROC may remove the name of the company from the Registrar of Companies

For Example:

A Company is incorporated on 3rd November, 2018, such company needs to file form INC-20A within 180 days from the date of Incorporation (i.e. 180 days from 3rd Nov, 2018). Otherwise, it cannot commence its business.

Further, If Company does not file the form within 180 days then the Company has to pay penalty and may face consequence of non-compliance as mentioned above.