The Declaration of Commencement of Business (Form 20A) is a filing requirement for companies in India. It is a mandatory document that companies need to submit to the Registrar of Companies (RoC) after incorporating a new business and before commencing any business activities. The purpose of Form 20A is to inform the RoC that the company has started its operations and is actively engaged in its business objectives.
Here are key details about Form 20A:
Purpose:
The primary purpose of Form 20A is to declare that a company, which has been recently incorporated, has commenced its business activities.
Time frame for Filing:
The Form 20A must be filed within 180 days from the date of incorporation of the company.
Information Required:
The form typically requires the following information:
- Date of Incorporation:
- Mention the date on which the company was officially incorporated.
- Business Activities Commenced:
- Provide details about the type of business activities that the company has commenced.
- Authorized and Paid-up Share Capital:
- Specify the authorized share capital and the amount of capital paid-up by the shareholders.
- Declaration by Directors:
- The form includes a declaration by the directors that the company has complied with all the necessary requirements for commencement of business.
Signatories:
The form must be signed by at least one director of the company.
Verification:
The information provided in Form 20A needs to be verified by a professional (Chartered Accountant, Company Secretary, or Cost Accountant) in practice.
Submission:
The form is submitted to the Registrar of Companies (RoC) through the Ministry of Corporate Affairs (MCA) portal.
Consequences of Non-Filing:
Failure to file Form 20A within the stipulated time frame may result in penalties, and the company may face legal consequences. It is, therefore, important to ensure timely compliance with this requirement.
Steps to File Form 20A:
- Log in to MCA Portal:
- Access the Ministry of Corporate Affairs (MCA) portal using the credentials of the authorized signatory.
- Navigate to e-Filing:
- Go to the “e-Filing” section on the portal.
- Select Form 20A:
- Choose Form 20A for filing.
- Provide Details:
- Fill in the required details, including the date of incorporation, business activities commenced, authorized and paid-up share capital, and director’s declaration.
- Verification:
- Get the information verified by a professional (Chartered Accountant, Company Secretary, or Cost Accountant).
- Submit the Form:
- After verification, submit the Form 20A through the MCA portal.
- Payment of Fees:
- Pay any applicable filing fees.
- Obtain Acknowledgment:
- Once the form is successfully submitted, obtain the acknowledgment for future reference.
It’s essential for companies to comply with the statutory requirements, including the timely filing of Form 20A, to maintain good standing with regulatory authorities. Always refer to the latest guidelines and notifications from the Ministry of Corporate Affairs for the most accurate and up-to-date information on compliance requirements.
