Who signs Form INC-20A?
A director authorised by the board signs Form INC-20A. A practising chartered accountant, company secretary, or cost accountant certifies it. The form is the declaration that each subscriber has paid for the shares agreed to be taken.
Who signs and who certifies?
The board authorises one director to sign. That director’s digital signature is the company’s signature on the declaration. The practising professional’s certificate is a second signature. It confirms the declaration. It does not replace the director. What the declaration must say, and which company files it, is on the INC-20A page.
What is attached?
The company attaches proof that the subscribers have paid the value of the shares they agreed to take. Where the company needs a registration from the Reserve Bank or another regulator before it can carry on that business, that registration certificate is attached as well. An ordinary trading company does not attach a banking registration. A non-banking financial company does attach the registration that business requires.
When do the 180 days start?
Section 10A gives 180 days from the date of incorporation. The count does not start on the day the company happens to raise its first invoice. The company also needs the registered-office verification under section 12 before it commences business or borrows. A company incorporated before 2 November 2018, and a company with no share capital, do not file this form.
Where are the penalty and the removal power?
The company penalty is ₹50,000. Every officer in default is liable to ₹1,000 for each day, capped at ₹1 lakh. If the declaration is not filed within 180 days and the Registrar has reasonable cause to believe the company is not carrying on business, the Registrar may start action to remove the name. Those consequences are set out on the INC-20A page. A late form is not, by itself, an automatic removal.
Frequently asked questions
Four questions cover the 180 days, a certificate, a regulator’s paper, and who signs.
Are the 180 days counted from commencement?
No. Section 10A counts 180 days from the date of incorporation. The declaration is what allows the company to commence business. It is not filed 180 days after business has already started.
Is INC-20A a certificate?
No. It is a declaration that each subscriber has paid for the shares that subscriber agreed to take. The Registrar does not issue a separate commencement certificate.
Does every company attach an RBI certificate?
No. The registration certificate of a regulator is attached where that company needs one, such as a non-banking financial company. An ordinary company attaches proof that the subscribers have paid.
Can the professional sign instead of a director?
No. A director authorised by the board signs the declaration. The practising professional certifies it. One signature does not replace the other.
Sources
The declaration is section 10A of the Companies Act, 2013. The form is INC-20A. The director signs it and a practising professional certifies it.