Commencement Certificate (Form 20A)

Following companies are not required to file Form INC-20A:-

• Companies that are incorporated before 02nd November 2018 or
• Companies that are limited by guarantee

Form INC-20A is to be filed within 180 days from the date of incorporation of company

Yes, it is mandatory to file Form INC-20A and obtain a certificate for commencement of business

Following are the penal consequences of on filing of Form INC-20A:

1. Penalty on defaulting company:-   Rs. 50,000
2. Penalty on every officer in default of company:- Rs. 1000 per day subject to maximum of Rs. 1 Lakh
3. If Registrar has reasonable cause to believe that the company is not carrying on any business, he may initiate action for strike off the name of the company
4. The defaulting company cannot borrow money
5. The defaulting company cannot start business

In case the form is not filed on time, an additional charge is levied on the company, which is as follows:

• 2 times of standard fee up to 30 days
• 4 times of standard fee above 30 days but not exceeding 60 days
• 6 times of standard fee above 60 days but not exceeding 90 days
• 10 times of standard fee above 90 days but not exceeding 180 days
• 12 times of standard fee above 180 days