Legal Compliance with Nd Salva
As per the Companies Act, 2013, any company incorporated after November 2, 2018 with share capital must file
Form 20A within 180 days of incorporation to obtain the Certificate of Commencement of Business (COB). Without this filing,
a company cannot legally begin business operations or exercise borrowing powers.
At Nd Salva, we provide complete compliance support for Form 20A filing—ensuring accurate documentation, timely submission,
and full legal adherence from day one.
What is the Commencement of Business?
The Commencement of Business declaration confirms that:
- Subscribers have paid the full value of their subscribed shares
- The company has verified its registered office address
Filing must be done through Form 20A and certified by a CA, CS, or CWA. Incorrect statements may lead to penalties for both
the company and certifying professional.
Who Must File Form 20A?
- All companies incorporated after November 2, 2018
- Private Limited Companies
- Public Limited Companies
- Section 8 Companies with share capital
Significance of the COB Certificate
- Legal permission to commence operations
- Confirms capital subscription compliance
- Ensures regulatory transparency for stakeholders
- Protects against legal consequences and ROC inquiries
Due Date for Filing
Form 20A must be filed within 180 days from the date of incorporation. Delayed filing can freeze operations and trigger penalties.
Exemptions
- Companies incorporated before November 2, 2018
- Companies without share capital
Consequences of Non-Compliance
- Business Restriction: Company cannot begin operations
- Company Penalty: ?50,000
- Director Penalty: ?1,000 per day (max ?1,00,000)
- Strike-Off Risk: ROC may remove the company from register
Documents Required for Form 20A
- Proof of share capital payment (bank statement)
- Registered office verification documents
- RBI certificate (for regulated entities like NBFCs)
- Director declaration & board resolution
Step-by-Step Procedure
- Step 1: Login to MCA portal
- Step 2: Download and fill Form 20A
- Step 3: Attach required documents
- Step 4: Sign with DSC of director
- Step 5: Professional verification by CA/CS/CWA
- Step 6: Submit online and pay the fee
- Step 7: Receive SRN and ROC approval acknowledgement
Why Choose Nd Salva?
- Accurate and legally compliant Form 20A filing
- Expert verification by licensed professionals
- Complete documentation and advisory support
- Timely compliance to avoid penalties
- Transparent process with clear updates
- End-to-end corporate legal and compliance services