Start your business by filing your INC 20A.
Form INC 20A is the recently released and most talked about among the corporate. Before starting a business or using any borrowing powers, Companies registered in India after the implementation of the Companies (Amendment) Ordinance, 2018 and holding share capital are required to get the Commencement of Business Certificate. By using Form INC-20A on MCA, the Ministry has resurrected the idea of a Commencement of Business Certificate.
The directors of the company are required to submit Form 20A as a declaration when the business is first launched. A Chartered Accountant (CA), a Company Secretary (CS), or a Cost Accountant should confirm it in real life.
The firm will then be qualified to use the borrowing capabilities upon filing the E-Form INC-20A within 180 days. Failure to file could prevent the business from borrowing money.
The company can be protected from severe fines, such as Rs. 50,000 for the company and Rs. 1000 per day of default for directors up to a maximum of Rs. 1 lakh, if the form INC-20A is filed within 360 days.
A public database contains all the information related to the company. This feature makes it simple to verify the existence of the company, which eventually contributes to enhancing business credibility.
