Form INC-20A- Declaration for commencement of business: Important changes
Form INC 20A is a form that is required to be filed with the Registrar of Companies (RoC) under the Companies Act, 2013 in India. It is a declaration of commencement of business by a company. A company is required to file form INC 20A within 180 days of its incorporation, as a proof of commencement of business. The form must be signed by a director of the company and be accompanied by a declaration from a practicing professional certifying that the company has actually started its business operations.
MCA vide notification no G.S.R. 42(E) dated 19th January 2023 revised form INC-20A. Now the revised INC-20A form requires the company to disclose the following additional details:
- -Registered office along with Longitude & Latitude
- -Details of subscriber payment for value of shares. i.e. bank account, IFSC etc.
- -Photograph of Registered Office showing external building and inside office also showing therein at least one Director/ KMP
Whether subscription money can be received in cash by newly incorporated companies?
With these amendments, you can not bring subscription money in cash post incorporation. As you have to mention Account Number & IFSC code of bank of company for receipt of subscription money. In nutshell you have to bring subscription money through proper banking channel only.
The form must be signed by a director of the company and be accompanied by a declaration from a practicing professional (such as a Chartered Accountant or Company Secretary) certifying that the company has actually started its business operations. The signing professional has to ensure that details in the INC-20A are accurate and as per rules.