Brought in your Share Capital Money, File this form INC 20A after incorporation without fail to avoid penalties
Ministry of Corporate Affairs has added a new form Form INC 20A after the company Registration file Form INC 20A, declaring that the paid up share capital has been brought in, vide Companies (Incorporation) Fourth Amendment Rules, 2018 dated 18th December 2018
In simple terms once the company is formed the share holders subscribe to the share capital of the company they need to bring in the agreed money as share capital in the company From Now, the Subscribers to the Memorandum of Association of the Company cannot delay the refusal of their money in respect of the shares subscribed by them .
What is the Timeline for Bringing to share the paid-up agreed in the Bank account?
[Pursuant to Section 10A(1)(a) of the Companies Act, 2013 and rule 23A of the Companies (Incorporation) Rules, 2014] After the Commencement of the Companies (Incorporation)Fourth Amendment Rules, 2018 which came into effect from 18th December 2018 requires the following:
Declaration at the time of commencement of business.-The declaration under section 10A by a director shall be in Form No.INC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant, in practice:
FORM INC-20A HAS TO BE FILED FOR THE FOLLOWING:
- Subscribers Proof of Payment for the value of shares.
- Certificate of Registration issued by RBI in case of NBFC companies
- Approval if any required by Securities and Exchange Board of India, (SEBI) .
Full Context of the Gazzate notice can be accessed from this link INC 20A Notification
What are the Penalties for Non-Compliance?
If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding the number of one lakh rupees. ( Rs .1000 Per day of Default up to a maximum of Rs Rs 1,00,000/- )
Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.
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