INC-20A Fees

When starting a new company in India, complying with the legal requirements set by the Ministry of Corporate Affairs (MCA) is crucial. One such requirement is the filing of Form INC-20A, a declaration for the commencement of business. This guide covers everything you need to know about INC-20A fees, including its importance, filing process, fees involved, and frequently asked questions.

Form INC-20A is a declaration that needs to be filed by a company within 180 days of its incorporation. This declaration states that the subscribers to the memorandum have paid the value of shares agreed to be taken by them. This form is mandatory for every company incorporated after November 2, 2018.

Filing INC-20A is essential for the following reasons:

1. Compliance with the Companies Act, 2013: It is a legal requirement under Section 10A of the Companies Act, 2013.
2. Avoiding Penalties: Non-filing of INC-20A can result in penalties and legal actions against the company.
3. Legitimizing Business Operations: It allows the company to commence business operations and exercise borrowing powers.
4. Bank Account Operations: Filing this form is necessary for the activation of the company’s bank account.

Step 1: Gather Required Information

Before filing INC-20A, ensure you have the following information:

• Company Incorporation Certificate
• Subscriber’s proof of payment for shares
• Registered office address
• Digital Signature Certificate (DSC) of a director
• Certificate of Incorporation (COI)
• PAN and TAN details

Step 2: Log in to the MCA Portal

Log in to the MCA portal using your credentials. If you do not have an account, you need to register first.

Step 3: Fill in the Details

Navigate to the ‘Form INC-20A’ section and fill in the required details, including:

• Corporate Identification Number (CIN)
• Date of incorporation
• Address of registered office
• Details of subscriber’s payment for shares

Step 4: Attach Required Documents

Attach the necessary documents such as:

• Proof of payment for the value of shares
• Board resolution for the declaration of commencement of business
• Bank statement showing the receipt of subscription money

Step 5: Sign and Submit

Sign the form using the Digital Signature Certificate (DSC) of a director and submit the form on the MCA portal.

Step 6: Pay the Fees

After submission, you will be prompted to pay the filing fees. The fee varies based on the company’s authorized capital.

The filing fee for Form INC-20A is determined by the company’s authorized capital. The fee structure is as follows:

Failure to file Form INC-20A within the stipulated time can result in the following penalties:

1. Company: The company can be fined INR 50,000.
2. Directors: Each director can be fined INR 1,000 per day of default up to a maximum of INR 1,00,000.

1. Incorrect Information: Ensure all details provided are accurate to avoid rejection of the form.
2. Incomplete Documents: Attach all required documents to prevent delays in the process.
3. Missed Deadline: File within 180 days of incorporation to avoid penalties.

1. What is Form INC-20A?

Form INC-20A is a declaration required to be filed by a company incorporated after November 2, 2018, stating that the subscribers to the memorandum have paid the value of shares agreed to be taken by them.

2. Why is filing INC-20A necessary?

Filing INC-20A is necessary to comply with Section 10A of the Companies Act, 2013, avoid penalties, and start business operations legally.

3. What are the penalties for not filing INC-20A?

The company can be fined INR 50,000, and each director can be fined INR 1,000 per day of default up to a maximum of INR 1,00,000.

4. What documents are required to file INC-20A?

Documents required include proof of payment for shares, board resolution, bank statement, and the Certificate of Incorporation.

5. How much is the filing fee for INC-20A?

The fee ranges from INR 200 to INR 600, depending on the company’s authorized capital.

6. Can a company commence business without filing INC-20A?

No, a company cannot legally commence business or exercise borrowing powers without filing INC-20A.

7. How long does it take to file INC-20A?

The process can be completed within a day if all required information and documents are readily available.

8. Can the filing fee be paid offline?

No, the filing fee for INC-20A must be paid online through the MCA portal.

9. What is the deadline for filing INC-20A?

Form INC-20A must be filed within 180 days of the company’s incorporation.

10. Is there any exemption from filing INC-20A?

No, every company incorporated after November 2, 2018, is required to file INC-20A without exception.

Filing Form INC-20A is a crucial step in the incorporation process for any new company in India. It ensures compliance with the Companies Act, 2013, and allows the company to commence its business operations legally. By understanding the filing process, required documents, fees, and potential penalties, you can ensure a smooth and timely submission of the form. Avoid common mistakes and be mindful of the deadlines to prevent any legal complications or fines.