All the companies are governed and controlled by MCA that has issued specific guidelines for the companies that were incorporated on or after 2nd November 2018. The subscribers of the company have to file the said declaration within 180 days of filing.
The director of companies is under an obligation to declare in the commencement of business that each of the subscribers has paid the value of the share which is agreed to be taken by him or her in the memorandum on the date of the making of such declaration.
The commencement of business certificates must be obtained within 180 days of incorporation of the company. The penalty that is charged on the company keeps on increasing based on the period of delay that is caused by the company.
If the company fails to file Form INC-20 A with MCA within 180 days, it will have to file form INC- 28 (Condonation of delay) before submitting form INC- 20 A.
The companies that have not obtained the commencement of business certificate are denied to file any ROC form with MCA;
the company, as well as the directors, are levied a substantial penalty for non-compliance.
If your company has not obtained the commencement of business certificate within 180 days of its commencement, the company will be liable to pay a penalty of 50,000 rupees.
If the registrar of the companies has a reason to believe that the company has not been carrying out any business operations or activity; there the registrar has an authority to remove the name of the company from companies register and the company will be marked in the strike-off stage.
The directors of the company that has not yet filed INC-20 A with the government after 180 days of the commencement will be liable for a penalty of Rs. 1000 per day and the maximum penalty that can be levied on the director is Rs. 1 lakh.