What is Form INC-20A?
Form INC-20A is the declaration a director files that every subscriber to the memorandum has paid the value of the shares agreed to be taken. A company incorporated on or after 2 November 2018, if it has a share capital, files it within 180 days of incorporation.
Which company files it?
Section 10A applies to a company that was incorporated on or after 2 November 2018 and that has a share capital. A private limited company, a public company, and a one person company are in that group when they have share capital. A company incorporated earlier does not file this declaration. A company with no share capital is outside the section.
What does the declaration say?
A director declares that, on the date of the declaration, each subscriber has paid for the shares that subscriber agreed to take. The company must also have filed the verification of its registered office under section 12. Until both are done, the company shall not commence any business or exercise any borrowing power. The form is filed with the Registrar. It is not the annual return, and it is not the form for a later change of office.
What is the penalty?
If the company defaults, it is liable to a penalty of ₹50,000. Every officer who is in default is liable to a penalty of ₹1,000 for each day the default continues, subject to a maximum of ₹1 lakh.
Can the Registrar strike the company off?
If no declaration is 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 start action to remove the company’s name. That action is separate from the penalty. How a name is removed is on the strike-off page, and what follows removal is on the consequences page.
Frequently asked questions
Four questions cover older companies, borrowing, the penalty, and the registered office.
Does a company incorporated before November 2018 file INC-20A?
No. Section 10A applies to a company incorporated on or after 2 November 2018 that has a share capital.
Can the company borrow before the form is filed?
No. Until the declaration is filed, and until the registered office has been verified, the company cannot commence business or exercise borrowing powers.
What is the penalty for a late INC-20A?
The company is liable to ₹50,000. Every officer in default is liable to ₹1,000 for each day of default, capped at ₹1 lakh.
Is INC-20A the registered office form?
No. The registered-office verification is section 12. INC-20A is the subscribers’ payment declaration, and section 12 must already have been complied with.
Sources
The declaration is section 10A of the Companies Act, inserted with effect from 2 November 2018. The form is INC-20A.