The Companies (Amendment) Ordinance 2019

Respected,

On 12th January, 2019 the MINISTRY OF LAW AND JUSTICE (Legislative Department) had passed THE COMPANIES (AMENDMENT) ORDINANCE, 2019 which had inserted new Section 10A (Commencement of Business).

Pursuant to it a declaration is required to be filed by a director within 180 days of the date of incorporation in Form INC-20A with the Registrar that every subscriber to the memorandum has paid the value of shares agreed to be taken by him.

Applicability on the Company incorporated after 02/11/2018.

If any default is made in Compliance of the same, company shall be liable to penalty which may extend to Rs. 50,000/- and every officer who is in default shall be punishable with fine which may extend to Rs. 1,000/- for every day during which the default continues.

Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within 180 days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may initiate action for the removal of the name of the company from the register of companies.

LINK OF THE NOTIFICATION:-

http://www.mca.gov.in/Ministry/pdf/NotificationCAO2019_15012019.pdf