In this blog post, we will discuss the essential details related to Form INC-20A, its significance, and the process to file it.
What is Form INC-20A?
Form INC-20A is a declaration that companies incorporated in India must file with the Registrar of Companies (RoC) to confirm that they have commenced their business operations. This form was introduced by the MCA in 2019 to prevent shell companies from being registered and to ensure that companies start their business activities within a reasonable period.
Significance of Form INC-20A
The filing of Form INC-20A is mandatory for all companies incorporated in India. If a company fails to file this form within 180 days of incorporation, the Registrar may initiate action against it and may even strike off the name of the company from the Register of Companies.
The filing of this form assures the Registrar and other stakeholders that the company is not a shell company and is actively engaged in business activities. It also helps in establishing the company’s creditworthiness, which can be beneficial for future funding or investment.
Process to File Form INC-20A
The process to file Form INC-20A is simple and can be completed online. Here are the steps to file this form:
Step 1: Login to MCA portal
The first step is to log in to the MCA portal (www.mca.gov.in) using the credentials of the registered user.
Step 2: Select Form INC-20A
Once you have logged in, click on the “e-Form” tab and select Form INC-20A from the list of available forms.
Step 3: Fill in the details
After selecting Form INC-20A, you will be redirected to a page where you need to fill in the required details, such as the name of the company, its registered office address, details of the directors, and the date of commencement of business.
Step 4: Attach supporting documents
You need to attach supporting documents such as bank statements, invoices, and proof of payment of the registration fee to the form.
Step 5: Pay the fee
After filling in all the details, you need to pay the prescribed fee for filing the form.
Step 6: Submit the form
Once the fee is paid, you can submit the form electronically to the Registrar of Companies.
It’s worth noting that the declaration in Form INC-20A needs to be supported by evidence of business activity. The company needs to provide bank statements, invoices, or other documents that show that it has begun its operations. This requirement ensures that the declaration is not merely a formality but is backed by evidence that the company is actively engaged in business activities.
It’s also important to note that the filing of Form INC-20A is not a one-time requirement. Companies need to file this form within 180 days of incorporation, and thereafter, they need to continue filing their annual returns and other compliance documents on time. Failure to do so can lead to penalties, legal action, and even the striking off of the company’s name from the register.
conclusion
Form INC-20A is an essential compliance requirement for companies in India. It helps ensure that only genuine businesses are registered, and illegitimate activities are curbed. Companies must file this form within 180 days of incorporation, and ensure that the declaration is backed by evidence of business activity. By complying with this requirement and other compliance requirements, companies can build a good reputation, establish their creditworthiness, and attract investment and funding opportunities.
Other Related Blogs: Section 144B Income Tax Act
Frequently Asked Questions (FAQs)
Q: Who needs to file Form INC-20A?
A: Every company incorporated in India needs to file Form INC-20A within 180 days of incorporation to confirm that it has commenced its business activities.
Q: What is the purpose of Form INC-20A?
A: The purpose of Form INC-20A is to ensure that companies have begun their operations within a reasonable period and are not just shell companies. The filing of this form assures the Registrar and other stakeholders that the company is actively engaged in business activities.
Q: What documents need to be attached to Form INC-20A?
A: Supporting documents such as bank statements, invoices, and proof of payment of the registration fee need to be attached to Form INC-20A to substantiate the company’s claim of having commenced business activities.
Q: What happens if a company fails to file Form INC-20A within 180 days of incorporation?
A: If a company fails to file Form INC-20A within 180 days of incorporation, the Registrar may initiate action against it and may even strike off the name of the company from the Register of Companies.
Q: Is filing Form INC-20A a one-time requirement?
A: No, filing Form INC-20A is not a one-time requirement. Companies need to file this form within 180 days of incorporation and then continue filing their annual returns and other compliance documents on time.
Q: Can Form INC-20A be filed online?
A: Yes, Form INC-20A can be filed online through the MCA portal. Companies need to log in to the portal, select Form INC-20A, fill in the required details, attach supporting documents, pay the fee, and submit the form electronically to the Registrar of Companies.
Q: Is there a penalty for late filing of Form INC-20A?
A: Yes, there is a penalty for late filing of Form INC-20A. The company may have to pay a late filing fee, and the Registrar may take legal action against it. It’s crucial to file this form within 180 days of incorporation to avoid such penalties and legal consequences.
