COMPANIES FINED FOR FAILURE TO FILE E-FORM
INC-20A- WITHIN 180 DAYS OF INCORPORATION
DAY1 ADVISORS PRIVATE LIMITED Vs ROC, DELHI
REQUIREMENT UNDER COMPANIES ACT 2013
Every company incorporated after 2nd November 2018, having a share capital, must file Form INC-20A (Declaration of Commencement of Business) within 180 days of incorporation.
The form INC-20 A also confirms the following :
that subscribers have paid the value of shares agreed and
that the company has filed verification of its registered office.
Section 10A(1): Company cannot commence business or borrow money unless INC-20A is filed. DAY1 ADVISORS PRIVATE LIMITED Vs ROC, DELHI
REQUIREMENT UNDER COMPANIES ACT 2013
Every company incorporated after 2nd November 2018, having a share capital, must file Form INC-20A (Declaration of Commencement of Business) within 180 days of incorporation.
The form INC-20 A also confirms the following :
that subscribers have paid the value of shares agreed and
that the company has filed verification of its registered office.
Section 10A(1): Company cannot commence business or borrow money unless INC-20A is filed.
PENALTIES LEVIED
Company was levied a penalty of Rs ₹50,000.
Directors’ penalty: ₹1,000 per day of default (capped at ₹25,000 per director).
KEY LEARNINGS
Newly incorporated companies must ensure timely filing of INC-20A to avoid heavy penalties and operational restrictions.
Persistent failure may even lead to strike-off under Section 248
If the company is a small company, it can claim Small-company relief u/s 446B .
R V SECKAR FCS.LLB 79047 19295
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