Yes, filing Form INC-20A is mandatory after the incorporation of a company in India. Here are the key points regarding Form INC-20A:
- Purpose: Form INC-20A is a declaration for the commencement of business. Newly incorporated companies must file this form to confirm that they have received the paid-up share capital as stated in the memorandum of association.
- Timeframe: This form must be filed within 180 days of the company’s incorporation.
- Applicability: All companies incorporated after the commencement of the Companies (Amendment) Ordinance, 2018, are required to file Form INC-20A. This includes private companies, public companies, and one-person companies (OPCs).
- Attachments: The form must be accompanied by a bank statement showing the deposit of the paid-up share capital or a certificate of deposit issued by the bank.
- Consequences of Non-Filing: If the company does not file Form INC-20A within the specified period, it cannot commence its business or borrow money. Additionally, penalties may be imposed, and the Registrar of Companies (RoC) has the power to initiate action for the removal of the company’s name from the register.
- Penalty for Non-Compliance:
- The company is liable to pay a penalty of INR 50,000.
- Every officer in default is liable to pay a penalty of INR 1,000 for each day of default, subject to a maximum of INR 1,00,000.
Filing Form INC-20A is crucial for the legal functioning and compliance of a newly incorporated company in India.
Filing Form INC-20A does not necessarily require a Chartered Accountant (CA). However, seeking professional assistance can be beneficial to ensure compliance with all legal requirements. Here are the steps to file Form INC-20A:
- Gather Necessary Documents:
- A bank statement showing the deposit of the paid-up share capital.
- Certificate of deposit issued by the bank (if applicable).
- Login to MCA Portal:
- Access the Ministry of Corporate Affairs (MCA) website and log in with your credentials.
- Download and Fill Form INC-20A:
- Download Form INC-20A from the MCA portal.
- Fill in the required details such as the Corporate Identity Number (CIN), name of the company, address of the registered office, etc.
- Attach Necessary Documents:
- Attach the bank statement or certificate of deposit as proof of receipt of paid-up share capital.
- Certification:
- A professional certification is required for filing INC-20A. This can be done by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant in practice.
- If you do not have a professional on board, you can hire one for certification purposes.
- Submit the Form:
- Once the form is duly filled and certified, submit it through the MCA portal.
- Pay the prescribed fees for filing the form.
- Acknowledgment:
- After submission, you will receive an acknowledgment via email from the MCA.
While it’s not mandatory to hire a CA for the entire process, the certification step does require a professional. Engaging a CA or CS can help ensure that the filing is done correctly and compliantly.