Small Company Fails to File Declaration in Form 20A within 180 days: MCA imposes Penalty of Rs. 2.5L
The ROC directed that the penalty must be paid by the officers from their personal income through the MCA portal within 90 days and Form INC-28 must be filed with proof of payment
In a recent order, the Registrar of Companies of Hyderabad under Ministry of Corporate Affairs (MCA) has imposed a penalty of ₹2,50,000 on a small company, for its failure to comply with the mandatory requirement under Section 10A of the Companies Act, 2013. As per Section 10A, every company incorporated after the commencement of the Companies (Amendment) Act, 2019,...
In a recent order, the Registrar of Companies of Hyderabad under Ministry of Corporate Affairs (MCA) has imposed a penalty of ₹2,50,000 on a small company, for its failure to comply with the mandatory requirement under Section 10A of the Companies Act, 2013.
As per Section 10A, every company incorporated after the commencement of the Companies (Amendment) Act, 2019, having share capital, must file a declaration within 180 days of incorporation that every subscriber to the memorandum has paid the value of the shares agreed to be taken by them. Additionally, the company must verify its registered office as required under Section 12(2).
In this case, Abhayahastha Information Services Private Limited was incorporated on 18th October 2021 but failed to file the requisite declaration in e-Form INC-20A within the stipulated 180 days.
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The Hyderabad ROC noted that the company did not comply despite a reasonable opportunity after reviewing the matter and issuing a notice. Therefore, the adjudicating officer used the penalty provisions under Section 10A(2) read with Section 454, punishing the company ₹50,000 and its four defaulting directors ₹50,000 each, for a total penalty of ₹2,50,000.
Thus, in view of the violation of Section 10A(1) of the Companies Act, 2013, the adjudicating officer has imposed penalties on the company and its defaulting officers under Sections 454(1) and (3).
The ROC directed that the penalty must be paid by the officers from their personal income through the MCA portal within 90 days and Form INC-28 must be filed with proof of payment.
According to Section 454(5) and (6) of the Act read with the applicable rules, any appeal against this order may be filed in Form ADJ with a certified copy of the order to the Regional Director (SER), Hyderabad, within 60 days of receiving the order.
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