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CAN COMMENCEMENT OF BUSINESS (INC20A) FORM FILLING IS REQUIRED IN ONE PERSON COMPANY (OPC)?

CAN COMMENCEMENT OF BUSINESS (INC 20 A) FORM FILLING IS REQUIRED IN ONE PERSON COMPANY (OPC)?

CAN COMMENCEMENT OF BUSINESS (INC 20 A) FORM FILLING IS REQUIRED IN ONE PERSON COMPANY (OPC)?

In accordance with Section 10A read with Rule 23A of the Companies (Incorporation) Rules, 2014, certain conditions must be met by every company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital before commencing any business or exercising borrowing powers. These conditions are as follows:

(a) A director of the company must file a declaration in Form INC-20A within 180 days of the date of incorporation. This declaration should confirm that every subscriber to the memorandum has paid the agreed-upon value of the shares at the time of making the declaration. The form must be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant who is in practice.

(b) The company must file a verification of its registered office in Form INC-22 with the Registrar. This verification should comply with the requirements stated in subsection (2) of Section 12 of the Companies Act, 2013.

(c) Failure to comply with the requirements mentioned in this section will result in penalties. The company will be liable to pay a penalty of fifty thousand rupees (50,000), and every officer who is in default will be liable to pay a penalty of one thousand (1000) rupees for each day the default continues, up to a maximum of one lakh rupees (1LAKH).

(d) If no declaration has been filed with the Registrar under clause (a) of subsection (1) within 180 days of the company’s incorporation, and the Registrar has reasonable cause to believe that the company is not engaged in any business or operations, the Registrar may initiate action to remove the company’s name from the register of companies under Chapter XVIII. This action is taken without prejudice to the provisions of subsection (2).