WHAT IS INC-20A AND HOW IT AFFECTS A COMPANY

WHAT IS INC-20A AND HOW IT AFFECTS A COMPANY

 

WHAT IS INC-20A AND HOW IT AFFECTS A COMPANY

 

WHAT IS INC-20A

 

As per the Companies (Amendment) Ordinance 2018 and pursuant to section 10A (1) (a) of the Companies Act, 2013 and Companies (Incorporation) Rules, 2014. A company incorporated on or after 02nd of November 2018 is mandatorily required to file a Declaration of commencement of business before starting any business in Form 20A within 180 days of the date of incorporation of the company that Every Subscriber To The Moa Has Paid The Value Of The Shares Agreed To Be Taken By Him On The Date Of Making Of Such Declaration”

 

WHICH TYPE OF COMPANY DO NOT REQUIRE FILING OF INC-20A

 

  • Company Incorporated before 02nd November 2018

  • Company Incorporated after 02nd November not having a share capital.

 

WHAT ARE THE PENALTY ON NON FILING OF FORM

 

  • A penalty in the form of Additional fees maximum 13 times of normal fee levied on the company if it fails to comply with the mentioned requirement.

 

HOW IT AFFECTS THE COMPANY

 

  • The registrar may remove the name of the company from the Register of companies.

  • The company cannot start the business

 

WHAT ARE THE DETAILS REQUIRED FOR INC-20A

 

Below are the required details for INC-20A

 

  • Subscriber proof of payment of the value of a share

  • Bank statement of the Company having entries of deposit of money by each subscriber

 

 

We hope the information will assist you in your Professional endeavors. If you need help understanding why INC-20 is important to business or any other Compliance related Query, you can post your legal need on TheLegalBank. The Legal Bank has all professionals at a single platform including Chartered Accountant, Company Secretary, Lawyer’s, and engineers to provide 360-business solutions. We have on average 8 years of business incorporation legal experience.