Declaration for Commencement of Business
Before the declaration in Form, INC-20A is filed by the company, the entire subscribed share capital as shown in the MOA of the company must be deposited in the bank account of the newly registered company. Only after approval of the INC-20A a company can commence its business activity, what so ever. The maximum time prescribed for filing of INC-20A is 180 days from the date of incorporation of the company.
The company shall be closed if the declaration for Commencement of Business is not Filed.
Key Points for Filing of Form Number INC-20A
- Applicability On Companies: The MCA has notified the new provision on 26th January 2019 which shall have retrospective effect to all companies incorporated on or after 2nd November 2018. Hence every applicable company must take steps to file INC-20A ASAP.
- No Activity until approval of INC-20A: A company must not enter into any transaction or business activity before approval of INC-20A. In other words, any agreement, sale, purchase without the issue of the certificate of commencement of business shall be an illegal activity.
- Deposit of Capital from Promoters: The share capital amount must be deposited in the company bank A/c through Banking Channels only. However, it may be deposited in parts but the aggregate transfer should exactly match with the paid-up capital.
- List of Documents for Filing INC-20A: The company must check if the registered address has been reported to ROC at the time of incorporation or not and obtain Bank Statement of Company Showing transaction pertaining to capital. Now file INC-20A with DSC.