INTRODUCTION:
The Ministry of Corporate Affairs has re-introduced the concept of commencement of business certificate. Under the newly introduced The Companies (Amendment) Ordinance 2018, all companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having a share capital is required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers. Since The Companies (Amendment) Ordinance 2018 was introduced in November 2nd 2018, any company incorporated after November 2018 would be required to obtain Commencement of Business Certificate.
CERTIFICATE FOR COMMENCEMENT OF BUSINESS
Under the Companies (Amendment) Ordinance, 2019, a new Section is introduced i.e. Section 10 A for Commencement of Business.
Section 10 A- COMMENCEMENT OF BUSINESS
*MANDATORY TO OBTAIN CERTIFICATE OF COMMENCEMENT OF BUSINESS FOR REGISTERED COMPANIES:*
APPLICABILITY
Companies registered on or after November 02, 2018 are required to file the declaration for commencement of business with the Registar of companies
*TIME LIMIT FOR FILING:*
The declaration for commencement of business shall be filled within 180 days from the date of getting CERTIFICATE OF INCORPORATION.
Penalty for Not Obtaining Commencement of Business Certificate
Penalty Levied on Company
Company is liable to pay Rs 50000
Penalty Levied on Directors
Directors are liable to pay Rs 1000 per day and maximum 1 lacs after expiration of 180 days from the date of registration.
*CONSEQUENCES IF FORM IS NOT FILED WITHIN TIME-*
• Company cannot start his business
• Company cannot borrow money
• Company will be closed by the Registrar of Companies.
• Department will remove of name of the company from the Registrar of Companies.
*FORM FILED FOR COMMENCEMENT OF BUSINESS
E-Form INC 20 A is required to be filed for Commencement of Business.
*Documents required for filing Form INC 20 A:
1. Subscribers proof of payment for value of shares- Bank Statement and Board Resolution
IN CASE OF NON BANKING FINANCIAL COMPANIES/ FROM OTHER REGULATORS:
Certificate of Registration issued by the RBI
Ques.Whether INC-22 is mandatory to file after incorporation while providing declaration in INC-20A?
Ans.As per our opinion, INC-22 (Notice to Registrar for Registered office of the Company) is not mandatory to file after incorporation if Company incorporated under SPICe form(INC-32) and provide all relevant documents of registered office address.
In case, while incorporating a Company under SPICe form (INC-32) and did not provide any proof of registered office address then after the incorporation, Company required to file INC-22 (Notice to Registrar for Registered office of the Company) within thirty days of the date of incorporation.
Conclusion: While providing decalration in INC-20A, there is no need to file INC-22 as per section 12(2) of the Companies Act 2013 if Company already provided relevant documents for the registered office in SPICe (INC-32).
Ques.Whether INC-22 is mandatory to file after incorporation while providing declaration in INC-20A?
Ans.As per our opinion, INC-22 (Notice to Registrar for Registered office of the Company) is not mandatory to file after incorporation if Company incorporated under SPICe form(INC-32) and provide all relevant documents of registered office address.
In case, while incorporating a Company under SPICe form (INC-32) and did not provide any proof of registered office address then after the incorporation, Company required to file INC-22 (Notice to Registrar for Registered office of the Company) within thirty days of the date of incorporation.
Conclusion: While providing decalration in INC-20A, there is no need to file INC-22 as per section 12(2) of the Companies Act 2013 if Company already provided relevant documents for the registered office in SPICe (INC-32).
Fee for filing e-Form 20A :
i. In case of company have share capital
Nominal Share Capital Fee applicable
Less than 1,00,000 Rupees 200
1,00,000 to 4,99,999 Rupees 300
5,00,000 to 24,99,999 Rupees 400
25,00,000 to 99,99,999 Rupees 500
1,00,00,000 or more Rupees 600
ii. In case of company not have share capital
Rupees 200
Additional fee after 180 days from the date of Incorporation
Period of delays Fees
Up to 30 days 2 times of normal fees
More than 30 days and up to 60 days 4 times of normal fees
More than 60 days and up to 90 days 6 times of normal fees
More than 90 days and up to 180 days 10 times of normal fees
More than 180 days 12 times of normal fees
CLICK THE LINK BELOW FOR THE NOTIFICATION
http://www.mca.gov.in/Ministry/pdf/NotificationCAO2019_15012019.pdf
Regards
CS DIVYANSHU SAHNI
DIVYANSHU SAHNI & ASSOCIATES
512B, KIRTI SHIKAR BUILDING,
JANAKPURI DISTRCIT CENTRE, New Delhi-110058
Mob: 9871027426
DELHI| Mumbai| Karnataka| Bangalore