{"id":41249,"date":"2022-03-21T11:46:16","date_gmt":"2022-03-21T06:16:16","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41249"},"modified":"2022-03-21T11:46:19","modified_gmt":"2022-03-21T06:16:19","slug":"form-20a-purpose-fees-and-penalties","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/","title":{"rendered":"Form 20A \u2013 Purpose, Fees, and Penalties"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Form 20A refers\nto a declaration required to be filed by the company&#8217;s director at the time of\ncommencement of a company. It ought to be validated by a practising CA or CS or\na Cost Accountant.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Latest_News_regarding_Form_20A\" >Latest News regarding Form 20A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Requirements_of_filing_Form_20A\" >Requirements\nof filing Form 20A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Who_are_not_required_to_file_Form_20A\" >Who are\nnot required to file Form 20A?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#The_Timespan_for_filing_Form_20_A\" >The\nTimespan for filing Form 20 A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Requirement_and_procedure_for_filing_Form_20A\" >Requirement\nand procedure for filing Form 20A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Penalties_Relating_to_the_Non-Compliance\" >Penalties\nRelating to the Non-Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Fee_relating_to_the_filing_Form_20A\" >Fee\nrelating to the filing Form 20A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/form-20a-purpose-fees-and-penalties\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Latest_News_regarding_Form_20A\"><\/span>Latest News regarding Form 20A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the latest notice released by <strong>MCA<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/home.html\"><strong>[1]<\/strong><\/a><\/sup> on 11th January 2022, the additional fee structure for delayed filing of forms has been modified. The recent modification elevates the additional fee limit for forms like INC- 22 and PAS-3.\u00a0<\/p>\n\n\n\n<p>As per the latest\nNotification dated 11th Jan 2022, the Ministry of Corporate Affairs has\nmodified the&nbsp;<strong>additional\nfee<\/strong>&nbsp;payable on&nbsp;<strong>the\ndelay of filing forms<\/strong>; furthermore, a higher additional fee is\napplicable on forms&nbsp;<strong>INC-\n22 and PAS-3.<\/strong>&nbsp;However, for form&nbsp;<strong>INC-20A, an only additional fee is<\/strong>&nbsp;applicable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirements_of_filing_Form_20A\"><\/span>Requirements\nof filing Form 20A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per Companies\n(Amendment) Ordinance 2018, there is a provision that seeks companies\n(registered on or after 02\/11\/ 2018) to file a commencement certificate of\nbusiness.<\/p>\n\n\n\n<p>Form 20A is\nreferred to as a declaration provided by the company&#8217;s directors within 180 days\nof the company&#8217;s incorporation date. The breach of such a condition could\nattract hefty penalties for the companies. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_are_not_required_to_file_Form_20A\"><\/span>Who are\nnot required to file Form 20A? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 20A is not\nmandatory for the following;&nbsp;<\/p>\n\n\n\n<ul><li>Companies incorporated before 02\/Nov\/2018 (i.e. prior to the\ncommencement of the Companies (Amendment) Ordinance, 2018).<\/li><li>Companies incorporated after 02\/11\/2018 without share\ncapital.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Timespan_for_filing_Form_20_A\"><\/span>The\nTimespan for filing Form 20 A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every company is\nliable to file Form 20A within 180 days of its incorporation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requirement_and_procedure_for_filing_Form_20A\"><\/span>Requirement\nand procedure for filing Form 20A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A certificate of commencement has to be secured within twenty days from the <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company incorporation<\/strong><\/a> date, and an electronic form has to be filed with the respective ROC regarding the same.\u00a0<\/li><\/ul>\n\n\n\n<ul><li>A declaration u\/s 10A from the company&#8217;s directors must be\nfurnished in a Board resolution in the electronic form itself. Additionally,\nevidence of deposit of the paid-up share capital by the subscribers is also\nrequired to be annexed with the eform.&nbsp;<\/li><\/ul>\n\n\n\n<ul><li>If a company pursues an object that attracts registration or\napproval from any concerned regulators such as RBI, SEBI, etc., it shall secure\nsuch approval or registration along with the declaration attached\nthereto.&nbsp;<\/li><\/ul>\n\n\n\n<ul><li>The eForm has to be examined and validated by a professional in\npractice before filing with the RoC.&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalties_Relating_to_the_Non-Compliance\"><\/span>Penalties\nRelating to the Non-Compliance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The penalties\nrelating to the non-compliance are pretty high to curtail the number of shell\nentities incorporated. Following are the penalties relating to the\nnon-compliance:&nbsp;<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty to be imposed on the entity<\/h3>\n\n\n\n<p>A fine amounting\nto Rs 50,000 shall be imposed on the company if it fails to adhere to the\nmentioned conditions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty to be imposed on the officers in default<\/h3>\n\n\n\n<p>Every defaulting\nofficer shall be accountable for paying the penalty amounting to Rs 1,000\/day\nfor each day during which default prevails, subject to the maximum penalty of\nRs 1 00,000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Company strike-off<\/h3>\n\n\n\n<p>If the Registrar\nhas viable reasons to believe that the entity is not undertaking any business\naffairs after 180 days of incorporation, the Registrar may discard the\ncompany&#8217;s name from the Register of companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fee_relating_to_the_filing_Form_20A\"><\/span>Fee\nrelating to the filing Form 20A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Fee for filing\neForm for entities having a share capital:<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Nominal Share Capital<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Applicable Fees in (Rs.)<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Where share capital is lower\n  than Rs 1,00,000\n  <\/td><td>\n  200\n  <\/td><\/tr><tr><td>\n  1,00,000 or higher but not surpassing\n  Rs 4,99,999\n  <\/td><td>\n  300\n  <\/td><\/tr><tr><td>\n  Rs 5,00,000 or higher but not\n  surpassing 24,99,999\n  <\/td><td>\n  400\n  <\/td><\/tr><tr><td>\n  25,00,000 or higher but not surpassing\n  99,99,999\n  <\/td><td>\n  500\n  <\/td><\/tr><tr><td>\n  1,00,00,000 or above\n  <\/td><td>\n  600\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong><em>Fee\nfor filing eForm for entities having nil share capital:<\/em><\/strong><\/p>\n\n\n\n<p>In\nthis scenrio, the fee applicable is only Rs 200.<\/p>\n\n\n\n<p>Additional\nfee (in case the form filing is not done in timely manner)<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Nominal Share Capital*<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Applicable Fees in (Rs)<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Up to 30 days\n  <\/td><td>\n  2 x of standard fees\n  <\/td><\/tr><tr><td>\n  Above 30 but not surpassing 60\n  days\n  <\/td><td>\n  4 x of standard fees\n  <\/td><\/tr><tr><td>\n  Above 60 days but not surpassing\n  90 days\n  <\/td><td>\n  6 x of standard fees\n  <\/td><\/tr><tr><td>\n  Above 90 days but not surpassing\n  180 days\n  <\/td><td>\n  10 x of standard fees\n  <\/td><\/tr><tr><td>\n  Above 180 days\n  <\/td><td>\n  12 x of standard fees\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><em><strong>Nominal Share\nCapital*<\/strong><\/em><\/p>\n\n\n\n<p>Nominal share\ncapital refers to the capital paid by the shareholders to purchase shares at\nface value.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 20A serves as an intimation application that is required to be filed with governing authority after setting up a new company. It is used to inform the governing authority about the commencement of the new company. The Director of the company is liable to file the same within the prescribed time frame to avoid underlying penalties.\u00a0<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/types-of-companies-under-companies-act-2013\/\">Types of companies under Companies Act, 2013\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form 20A refers to a declaration required to be filed by the company&#8217;s director at the time of commencement of a company. It ought to be validated by a practising CA or CS or a Cost Accountant.&nbsp; Latest News regarding Form 20A As per the latest notice released by MCA[1] on 11th January 2022, the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41252,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2188],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":11579,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41249"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41249"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41249\/revisions"}],"predecessor-version":[{"id":41259,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41249\/revisions\/41259"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41252"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}