Declaration of Commencement of Business - Series 487
MCA has inserted New Section 10A after Section 10 by and same has been inserted in Companies (Amendment) Act, 2019.
As per 10A, a company having SHARE CAPITAL incorporated after ordinance i.e. 02.11.2018 shall not commence its business or exercise any borrowing powers unless,
§ A declaration is filed by the directors in e-form Form No. INC-20A within 180 days from date of incorporation of company with ROC that ‘every subscriber to the MOA has paid the value of the shares agreed to be taken by him”.
a. Whether company incorporated without share capital need to file declaration in form INC- 20A?
b. A Company incorporates on or before 02.11.2018 whether needs to file e-form INC-20A with ROC?
c. After filing of e-form INC-22A, whether ROC shall issue Certificate of Commencement of Business?
Let’s have some look on Background:
d. Restriction before filing of e-form INC-20A?
e. What are the consequences if company fails to file form within 180 days?
f. What are the consequences if company commences business without filing of INC-20A?
§ Penalty on Company: the company shall be liable to a penalty of fifty thousand rupees.
g. Whether subscription money can be received in cash from the subscribers of memorandum?
h. What are the attachments of e-form INC-20A?
§ In case of subscription money received in Bank Account, attachment shall be copy of Bank Statement.
i. What is the time period of issue of share certificate by the Company?
j. Section 10A allows company to receive subscription money within 180 days then how to comply with the provision of Section 56?
Maintenance of Registered office of Company
Addition of Sub - Section (9) after Section 12 Sub Section 8:
Compliance as per Section 12:
Every company shall—
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at firstname.lastname@example.org).
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