{"id":50898,"date":"2022-11-23T12:13:26","date_gmt":"2022-11-23T06:43:26","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50898"},"modified":"2022-11-23T12:13:28","modified_gmt":"2022-11-23T06:43:28","slug":"company-incorporation-amendments-rules-2022","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/company-incorporation-amendments-rules-2022\/","title":{"rendered":"Company (Incorporation) Amendments Rules, 2022"},"content":{"rendered":"\n<p>The Company (Incorporation) Amendments Rules, 2022, have been\nfurther notified by the Ministry of Corporate Affairs to amend the Companies\n(Incorporation) Rules, 2014. With this notification, MCA modifies the <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/nidhi-company-registration\">Nidhi Company incorporation<\/a><\/strong> applications provision and introduces Form INC 20A. <\/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\/company-incorporation-amendments-rules-2022\/#Rule_12_%E2%80%93_Application_for_Company_Incorporation\" >Rule 12 &#8211; Application for Company Incorporation<\/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\/company-incorporation-amendments-rules-2022\/#Declaration_of_Business_Incorporation\" >Declaration of Business Incorporation<\/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\/company-incorporation-amendments-rules-2022\/#Section_10A_of_the_Companies_Act_2013\" >Section 10A of the Companies Act, 2013<\/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\/company-incorporation-amendments-rules-2022\/#Declaration_at_the_Time_of_Business_Commencement\" >Declaration at the Time of Business Commencement<\/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\/company-incorporation-amendments-rules-2022\/#Companies_that_are_exempt_from_filing_Form_NC-20A\" >Companies that are exempt from filing Form NC-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\/company-incorporation-amendments-rules-2022\/#Required_Documents_for_Form_NC-20A\" >Required Documents for Form NC-20A<\/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\/company-incorporation-amendments-rules-2022\/#Fees_Applicable\" >Fees Applicable<\/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\/company-incorporation-amendments-rules-2022\/#Additional_fees\" >Additional fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-amendments-rules-2022\/#Procedure_for_Submitting_eForm_INC-20A\" >Procedure for Submitting eForm INC-20A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/company-incorporation-amendments-rules-2022\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rule_12_%E2%80%93_Application_for_Company_Incorporation\"><\/span><strong>Rule 12 &#8211; Application for Company Incorporation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Rule 12 of Companies (Incorporation) Rules, 2014, is amended by\nthe Company (Incorporation) Amendments Rules, 2022. Rule 12 (Application for\nincorporation of companies) has been amended to include the following provision:<\/p>\n\n\n\n<p>&#8220;Provided further that, if a company is being incorporated as\na Nidhi, the Central Government&#8217;s declaration under sec 406, shall be obtained\nby the Nidhi before commencing business, and a declaration in this regard shall\nbe submitted at the time of incorporation by the company.&#8221;<\/p>\n\n\n\n<p>Companies desiring to function as Nidhi are required by the Company\n(Incorporation) Amendments Rules, 2022, to get a prior declaration from the\nCentral Government before accepting deposits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Declaration_of_Business_Incorporation\"><\/span><strong>Declaration of Business Incorporation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Company (Incorporation) Amendments Rules, 2022, are informed\nof the INC 20A form. It is a declaration that must be filed by the company&#8217;s\ndirectors when the business begins operations. And it must be confirmed by a\nCompany Secretary, Chartered Accountant or Cost Accountant.<\/p>\n\n\n\n<p>This is one of the most important regulations to adhere to, as the\npenalties for failing to file are incredibly severe.<\/p>\n\n\n\n<p><strong>Statutes\ngoverning e-Form INC-20A<\/strong><\/p>\n\n\n\n<p>Under Sec 10A (1) (a) of the Companies Act, 2013 &amp; Rule 23A of\nthe Company (Incorporation) Amendments Rules, Form INC-20A must be filed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_10A_of_the_Companies_Act_2013\"><\/span><strong>Section 10A of the Companies Act, 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A company which has been formed after the commencement of the\nCompanies (Amendment) Ordinance, 2018 &amp; has a share capital can not\ncommence any business or perform any borrowing powers Unless:<\/p>\n\n\n\n<ul><li>Within 180\ndays of the company&#8217;s date of incorporation, a director must file with the\nRegistrar a declaration that every subscriber of the memorandum has paid the\namount of the shares promised to be taken by him on the date of such\nDeclaration.<\/li><\/ul>\n\n\n\n<ul><li>The company\nhas filed a verification of its registered office with the Registrar.<\/li><\/ul>\n\n\n\n<ul><li>In the event\nof noncompliance with the requirements of this section, the company shall be\nsubject to a penalty of Rs.500,000, and each officer in default shall be\nsubject to a fine of Rs.1,000 per day during which the noncompliance continues,\nnot to exceed Rs.1,000,000.<\/li><\/ul>\n\n\n\n<ul><li>If no\ndeclaration is submitted to the Registrar within 180 days from the date of the\ncompany&#8217;s incorporation, &amp; the Registrar will have a reasonable cause to\nassume that the company is not running any business or operations. In that\ncase, he may initiate action to remove the company&#8217;s name from the company&#8217;s\nregister.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Declaration_at_the_Time_of_Business_Commencement\"><\/span><strong>Declaration at the Time of Business Commencement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Under section\n10 A, the Declaration by a director must be in Form No. NC-20A shall be filed\nunder the Companies (Registration Offices &amp; Fees) Rules, 2014, and a\nCompany Secretary, a Chartered Accountant, Cost Accountant in practice shall\nverify its contents.<\/li><\/ul>\n\n\n\n<ul><li>Suppose a\ncompany is pursuing activities that require registration or approval from\nsectoral regulators like the Reserve Bank of India, Securities Exchange Board\nof India, etc. In that case, the registration or permission must also be\nobtained and attached to the Declaration.<\/li><\/ul>\n\n\n\n<p><strong>The objective\nof the e-Form<\/strong><\/p>\n\n\n\n<p>Form INC-20A must be filed for Declaration before beginning\nbusiness operations or exercising borrowing powers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_that_are_exempt_from_filing_Form_NC-20A\"><\/span><strong>Companies that are exempt from filing Form NC-20A<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following companies are exempt from filing Form NC-20A:<\/p>\n\n\n\n<ul><li>Companies\nincorporated before November 2, 2018 (i.e., before the Companies (Amendment) Ordinance,\n2018 took effect).<\/li><li>Companies\nformed after November 2, 2018, without capital stock.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Required_Documents_for_Form_NC-20A\"><\/span><strong>Required Documents for Form NC-20A<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Payment proof\nfor the value of shares by subscribers<\/li><li>Registration\ncertificate issued by the Reserve Bank of India (Only for Non-Banking Financial\nCompanies) \/ from other regulators.<\/li><\/ul>\n\n\n\n<p><strong>Period for\nfilling Form NC-20A<\/strong><\/p>\n\n\n\n<p>Every company required to submit Form NC-20A must do so within 180\ndays of its formation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fees_Applicable\"><\/span><strong>Fees Applicable<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the 2014 Companies (Registration Offices and Fees)\nRules, the rates for form filing fees are specified.<\/p>\n\n\n\n<p>Fee for submitting electronic forms or documents if the company\nhas a share capital<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Nominal Share Capital<\/strong>\n  <\/td><td>\n  <strong>Fee applicable<\/strong>\n  <\/td><\/tr><tr><td>\n  Less than 1,00,000\n  <\/td><td>\n  Rupees 200\n  <\/td><\/tr><tr><td>\n  1,00,000 to 4,99,999\n  <\/td><td>\n  Rupees 300\n  <\/td><\/tr><tr><td>\n  5,00,000 to 24,99,999\n  <\/td><td>\n  Rupees 400\n  <\/td><\/tr><tr><td>\n  25,00,000 to 99,99,999\n  <\/td><td>\n  Rupees 500\n  <\/td><\/tr><tr><td>\n  1,00,00,000 or more\n  <\/td><td>\n  Rupees 600\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>Fee for filing electronic forms or documents if a company has no\nshare capital<\/p>\n\n\n\n<p>The company must submit Rs. 200 for filing e-Forms or documents if\nit has no share capital.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Additional_fees\"><\/span><strong>Additional fees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Period of delays<\/strong>\n  <\/td><td>\n  <strong>All forms<\/strong>\n  <\/td><\/tr><tr><td>\n  Up to 30 days\n  <\/td><td>\n  Two times of standard fees\n  <\/td><\/tr><tr><td>\n  More than 30 days, up to 60 days\n  <\/td><td>\n  Four times the standard fees\n  <\/td><\/tr><tr><td>\n  More than 60 days and up to 90 days\n  <\/td><td>\n  Six times the standard fees\n  <\/td><\/tr><tr><td>\n  More than 90 days and up to 180 days\n  <\/td><td>\n  Ten times legal fees\n  <\/td><\/tr><tr><td>\n  More than 180 days\n  <\/td><td>\n  12 times the legal fees\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Submitting_eForm_INC-20A\"><\/span><strong>Procedure for Submitting eForm INC-20A<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The steps below can be used to submit Form INC-20A on the <strong>MCA portal<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n<p>To submit eForm INC-20A, the applicant must visit the Ministry of Corporate\nAffairs&#8217; official website.<\/p>\n\n\n\n<p>The applicant can complete Form INC-20A with the following details\nby logging into the portal. <\/p>\n\n\n\n<ul><li>Corporate\nidentification number (CIN) information<\/li><\/ul>\n\n\n\n<ul><li>Director\n     identification number<\/li><\/ul>\n\n\n\n<ul><li>Name\n     of the regulator<\/li><\/ul>\n\n\n\n<ul><li>Date of approval\/registration<\/li><\/ul>\n\n\n\n<ul><li>Letter\nnumber\/registration number<\/li><\/ul>\n\n\n\n<p><strong>Uploading the\nDocuments: <\/strong>After\nproviding all the required information, the applicant must upload the required\ndocuments. By clicking the attachment button, the necessary file can be\nuploaded.<\/p>\n\n\n\n<p><strong>Declaration\nto be submitted: <\/strong>Enter the\nserial number and date of the board resolution that authorizes the signatory to\nsign, provide a declaration, and submit the form.<\/p>\n\n\n\n<p><strong>Electronically\nsign the Form: <\/strong>Only the\ncompany&#8217;s Director is permitted to sign this form. The individual must have\nregistered their DSC with the MCA. Register before signing the form if you\nstill need to do so.<\/p>\n\n\n\n<p><strong>Certification\nby a practising expert: <\/strong>This form\nmust be reviewed by a licensed professional. The practitioner&#8217;s information is\nentered and digital signature is attached. <\/p>\n\n\n\n<p><strong>Form\nsubmission: <\/strong>Form INC 20A is\nsubmitted and will be auto-approved.<\/p>\n\n\n\n<p><strong>Generation of\nSRN: <\/strong>Upon successful submission of\neForm INC-20A, an SRN will be generated and displayed to the user for future\ncorrespondence with the MCA.<\/p>\n\n\n\n<p><strong>Generation of\nChallan: <\/strong>Upon successfully submitting the\nform INC-20A, a challan detailing the user&#8217;s fees paid to the Ministry will be\ngenerated. It is confirmation to the user that the form has been submitted.<\/p>\n\n\n\n<p><strong>Email: <\/strong>When an eForm has been completely processed by the relevant\nauthority, an email is sent to the company&#8217;s email address containing an\nacknowledgement of the form and any associated documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Company (Incorporation) Amendments Rules, 2022, was notified by the MCA further to amend the Companies (Incorporation) Rules, 2014. With the notification, MCA amends the rules related to the application for the formation of Nidhi Companies and introduces Form INC 20A (Declaration for Commencement of Business). <\/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\/nidhi-company-incorporation-step-by-step-approach\/\">Nidhi Company Incorporation: A Step By Step Approach<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Company (Incorporation) Amendments Rules, 2022, have been further notified by the Ministry of Corporate Affairs to amend the Companies (Incorporation) Rules, 2014. With this notification, MCA modifies the Nidhi Company incorporation applications provision and introduces Form INC 20A. Rule 12 &#8211; Application for Company Incorporation Rule 12 of Companies (Incorporation) Rules, 2014, is amended [&hellip;]<\/p>\n","protected":false},"author":45,"featured_media":50899,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2889],"acf":{"service_id":"1"},"authorName":"Snehita Shukla","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/07\/MicrosoftTeams-image-84.jpg","authorDescription":"Snehita has her qualifications in B.Com LLB and LLM, and holds a specialization in Corporate &amp; Financial Laws and Policy. She is hardworking, dedicated and sincere. She has a great command in english and has great problem solving, critical thinking  and writing skills which makes her stand out of the crowd. She has a keen interest in legal research work and content writing, she also has a hold in legal research methodology. She loves to take challenges and to explore new topics to research on. She aims to improve her knowledge and skills through her experience.","postViews":3113,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50898"}],"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\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50898"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50898\/revisions"}],"predecessor-version":[{"id":50901,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50898\/revisions\/50901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50899"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}