Form INC-20A: Declaration for commencement of business
Published On: Oct 21, 2021 • Last Updated: Jul 29, 2022 • 3 min read •
Once the Private Limited Company (PLC) is incorporated, it is essential to stay abreast of laws and compliances that enable growth and scaling of the business. Especially those which can drastically impact the survival during the initial stages of the company.
As per the Companies Act 2013, private companies can only start the business or borrow any funds after filing INC-20A with the Registrar of Companies (ROC) within 180 days. Hence, Form INC-20A becomes one of the most important compliance. Let’s try and understand the applicability, fees, time limit, required documents, and penalties.
What is Form INC-20A?
As per the Companies (Amendment) Ordinance 2018, there is a requirement for all the companies registered on or after 2nd November 2018 to file a declaration of commencement of business. Form INC-20A was introduced to fulfil that requirement. It needs to be filed by the directors/owners with the ROC. It has to be verified by the practising Chartered Accountant (CA), Company Secretary (CS), or Cost Management Accountant (CMA).
Who needs to file it?
All the companies having Share Capital and incorporated on or after the Company (Amendment) Ordinance or 02/11/2018 needs to file a declaration ineform INC-20A.
Staying compliant is vital to the longevity and health of the business wherein; filing INC-20A is the first step after the incorporation of the business. The next step is to maintain books of accounts to know the financial situation at the end of the year.
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About the Author
Ruchika Agarwal is a professional content writer at LegalWiz.in. She is inquisitive and firmly believes in spreading information to educate readers and bring a positive change in society.