{"id":11783,"count":1,"description":"

Incorporating a Private Limited Company is only the beginning of its compliance journey. For a company covered by Section 10A of the Companies Act, 2013<\/strong>, filing the commencement of business declaration through Form INC-20A<\/strong> is an important post-incorporation requirement.<\/p>\r\n

Section 10A applies to a company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having share capital<\/strong>. Such a company cannot commence business or exercise borrowing powers unless the required declaration is filed within 180 days from incorporation<\/strong> and the registered office verification requirement has been complied with.<\/p>\r\n\r\n

What Happens If INC-20A Is Not Filed?<\/h2>\r\n

Failure to comply with Section 10A can result in statutory penalties.<\/p>\r\n

The company can be liable to a penalty of \u20b950,000<\/strong>. In addition, every officer in default can be liable to \u20b91,000 for each day<\/strong> the default continues, subject to a maximum penalty of \u20b91 lakh<\/strong> for the officer.<\/p>\r\n

There is also an important operational consequence. Until the requirements under Section 10A are satisfied, the company cannot commence business or exercise borrowing powers as permitted under the provision.<\/p>\r\n\r\n

Can the Company's Name Be Removed?<\/h2>\r\n

Potentially, yes.<\/p>\r\n

If the required declaration has not been filed within 180 days and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, the Registrar may initiate action for removal of the company's name from the register under the applicable provisions.<\/p>\r\n

This makes INC-20A more than a routine filing\u2014it is an important compliance step for eligible newly incorporated companies.<\/p>\r\n\r\n

Is INC-20A Required for Every Company?<\/h2>\r\n

No.<\/strong><\/p>\r\n

Section 10A specifically applies to companies incorporated after the relevant amendment and having share capital<\/strong>, subject to its conditions. Therefore, a company should first establish whether Section 10A applies to its particular structure and circumstances.<\/p>\r\n\r\n

What Should You Do If INC-20A Is Overdue?<\/h2>\r\n

If the deadline has been missed, the company should review its compliance position rather than simply ignoring the default.<\/p>\r\n

Check:<\/p>\r\n\r\n

    \r\n \t
  • Date of incorporation<\/li>\r\n \t
  • Whether Section 10A applies<\/li>\r\n \t
  • Whether subscribers have paid for their shares<\/li>\r\n \t
  • Registered office verification<\/li>\r\n \t
  • INC-20A filing status<\/li>\r\n \t
  • Other pending MCA compliances<\/li>\r\n<\/ul>\r\n

    Final Answer<\/h3>\r\n

    If an applicable company fails to file INC-20A, it can face a \u20b950,000 company-level penalty, officer penalties of \u20b91,000 per day up to \u20b91 lakh, and restrictions under Section 10A.<\/strong> In certain circumstances, the Registrar may also initiate action concerning removal of the company's name.<\/p>","link":"https:\/\/filingpoint.com\/consultants\/india\/what-happens-if-a-company-does-not-file-inc-20a-after-registration\/","name":"What Happens If a Company Does Not File INC-20A After Registration?","slug":"what-happens-if-a-company-does-not-file-inc-20a-after-registration","taxonomy":"post_tag","meta":[],"yoast_head":"\nWhat Happens If a Company Does Not File INC-20A After Registration? - Best Company Registration | Tax Filing Services in Chennai, India<\/title>\n<meta name=\"description\" content=\"Call Filing Point 72999-72500. The Best Company Registration, GST, ROC Filing Consultants. 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