Company Faces Penalty Over Non-Filing of e-Form INC-20A Within Specified Time:

Company Faces Penalty Over Non-Filing of e-Form INC-20A Within Specified Time The Registrar of Companies (ROC), Bangalore, has issued a penalty order against a company for its failure to file e-form INC-20A within the specified time as per section 10A(1)(a) of the Companies Act. The company, Stalwart Intellisense Private Limited, violated Section 10A(1)(a) of the Companies Act, which requires companies with share capital incorporated after the 2019 amendment to submit a declaration of commencement of business (Form INC-20A) within 180 days of incorporation.

Also Read

ROC Levies Penalty on Company and Director for Non-Compliance in Securities Allotment Rules

However, the said company filed e-form INC-20A late. The violation of section 10A(1)(a) continued for 433 days. The company voluntarily admitted its default by filing a suo-motu application, where it informed about the non-compliance of section 10A(1)(a) of the Act. Since the company does not qualify as a small company, the penalty could not be reduced under section 446B of the Companies Act. The ROC levied a penalty of Rs 50,000 on the company and Rs 1,00,000 each on its three directors for violating section 10A(1)(a).

Also Read

ROC Imposes Penalty on Company for Inadequate Directors’ Report Disclosures

The directors are required to pay their penalties with their own personal funds. The ROC directed the directors to correct the default and pay the penalty within 90 days through the e-Adjudication facility on the MCA Portal.