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INC 20 A

Introduction:

This Form Roc 20A is a declaration that needs to be filed by the directors of the company at the time of the start of the business. This form has to be verified by  Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant who is in practice.

When Form-20A to be filed?

Form 20A is a declaration filed by the directors within 180 days of the date of incorporation of the company filed with the concerned ROC (Registrar Of Companies). It is one of the most important compliances that should be followed as the penalties for non-filing is extremely high.

Exception for Companies to File Form

The following companies are not required to file Form 20A:

  • Companies incorporated before 2 November 2018 ( i.e before the commencement of the Companies ( Amendment) Ordinance, 2018).
  • Companies incorporated after 2nd November 2018 without share capital.

Declaration 

A declaration under section 10A from the directors has to be provided in the form of a Board Resolution in the form itself. In addition to this, a proof of deposit of the paid-up share capital by the subscribers also needs to be attached in the form. If a company pursues objects requiring registration or approval from any sectoral regulators such as The Reserve Bank of India and Securities and Exchange Board of India etc, then it shall obtain such registration or approval along with the attached declaration. The eForm has to be verified and certified by a practicing professional before filing with the ROC (Registrar Of Companies).

 

Penalties:

  • Failure of Payment: A penalty of Rs 50,000 will be levied on the company if it fails to comply with the mentioned requirement.
  • Penalty on the officers: Every such officer in default shall be liable to a penalty of Rs 1,000 per day for each day during which the default continues subject to a maximum of Rs 1,00,000.
  • Shut-down of Companies: If the Registrar has reasonable documents to believe that the company is not having business running or operations even after 180 days of incorporation, the registrar may remove the name of the company from the Register of companies.

Fees for Filing the Form:

Fee for filing eForm for companies having a share capital :

Nominal Share Capital Applicable Fees in (Rs.)
Where share capital is less than 1,00,000 200
1,00,000 or above but not exceeding 4,99,999 300
5,00,000 or above but not exceeding 24,99,999 400
25,00,000 or above but not exceeding 99,99,999 500
1,00,00,000 or above 600

Fee for filing eForm for companies having no share capital:

In this case, the fee applicable is only Rs 200.

Additional fee (in case the form is not filed within the time)

Nominal Share Capital Applicable Fees in (Rs)
Up to 30 days 2 times of normal fees
Above 30 but not exceeding 60 days 4 times normal fees
Above 60 days but not exceeding 90 days 6 times normal fees
Above 90 days but not exceeding 180 days 10 times of normal fees
Above 180 days 12 times of normal fees