Commencement of business

INTRODUCTION

According to the Companies (Amendment) Ordinance 2018, companies registered on or after 2nd November 2018 are required to submit a certificate of commencement of business. Form 20A serves as a declaration that directors must file within 180 days from the date of the company’s incorporation. This compliance is crucial, given the substantial penalties for non-filing.

COMPANIES EXEMPTED FROM FILING FORM 20A

The following categories of companies are not obligated to file Form 20A:

• Companies incorporated before 2nd November 2018 (prior to the commencement of the Companies (Amendment) Ordinance, 2018).
• Companies incorporated after 2nd November 2018 without a share capital.

TIMEFRAME FOR FORM 20A FILING

Companies required to file Form 20A must do so within 180 days from their date of incorporation.

REQUIREMENT AND PROCEDURE

To comply with this regulation, a certificate of business commencement must be obtained within 180 days from incorporation, and an eForm must be filed with the relevant Registrar of Companies (ROC). Directors are required to provide a declaration under section 10A in the form of a Board Resolution within the eForm. Additionally, proof of depositing the paid-up share capital by subscribers must be attached to the eForm. If a company pursues objectives necessitating registration or approval from sectoral regulators such as the Reserve Bank of India and the Securities and Exchange Board of India, it must obtain such registration or approval along with the attached declaration.

 Before filing with the ROC, the eForm needs verification and certification by a practicing professional.