Form 20A

When firm first opens for business, directors are required to file Form 20A, which is declaration. In practical terms, it ought to be confirmed by Cost Accountant, Company Secretary, or Chartered Accountant (CA).

What Is Form 20A?

All companies registered on or after November 2, 2018, are required under Companies (Amendment) Ordinance 2018, to file certificate of commencement of business. directors file Form 20A, declaration, within 180 days of company's incorporation date. Given severe penalties for not filing, this is one of most crucial compliances to adhere to.

Who Is Required To File Form 20A

Any company: 

• That was formed after November 2, 2018, & 
• Has share capital, 

Must file INC 20A.
 

When Should Form 20A Be Filed?

Form 20A must be submitted by every company that is obligated to do so within 180 days of incorporation.

What Information Is Required To Fill Form 20A?

Prerequisites for submitting INC 20A are as follows:

• business has to create bank account in its name.
• company's stockholders should deposit funds from their personal accounts into designated capital.
• business need to have informed ROC of its registered business address.
• Neither company's founding nor its borrowings were appropriate.

How To File Form 20A?

A board resolution on eForm itself must be submitted as declaration under section 10A from directors. Furthermore, eForm attachment proving subscribers' paid-up share capital must also be included. corporation must get registration or clearance along with accompanying declaration if it pursues objectives that call for it from sectoral regulators including Securities & Exchange Board of India & Reserve Bank of India, among others. Before being filed with ROC, eForm needs to be validated & confirmed by experienced professional (Registrar Of Companies).

Penalties For Not Filing Form 20A On Time

 Severe penalties for noncompliance were implemented with intention of lowering quantity of shell corporations that were established. following are consequences for noncompliance:

• Penalty to be imposed on firm: Should company disregard aforementioned requirement, it will be subject to penalty of ₹ 50,000. 
• Penalties to be levied on officers: Should officer be found in default, they will be penalized ₹ 1,000 per day for as long as default continues, with maximum of ₹ 100,000.
• Company strike-off: Registrar may strike company from Register of Companies if there are reasonable grounds to believe that company is not doing business or operations, even after 180 days.
   

Conclusion

Form 20A is essential for ensuring regulatory compliance in incorporation process of company. This form is part of statutory requirements for company registration & must be submitted as part of corporate filings. It serves as key piece of legal documentation needed to confirm commencement of business operations. Completing 20a form is crucial step in business registration process, as mandated by corporate governance guidelines. Government forms like Form 20A help maintain proper corporate governance & adherence to required regulations.