INC-20A PENALTY


 Company Penalized for Delayed Filing of E-Form INC-20A

Facts of the Case

The Registrar of Companies (ROC), NCT of Delhi & Haryana, issued an adjudication order against Emperium Constructions Private Limited (CIN: U45309DL2021PTC389947) for non-compliance with Section 10A of the Companies Act, 2013.

Regulatory Requirement (Section 10A)

As per Section 10A, a newly incorporated company must file Form INC-20A within 180 days from the date of incorporation to confirm that the subscribers have paid for their shares.

Violation

  • The company was incorporated on 16th November 2021 and was required to file Form INC-20A on or before 15th May 2022.

  • However, the form was submitted belatedly on 3rd June 2022, resulting in a delay of 19 days.

Adjudication and Penalty

  1. 📌 Issuance of Show Cause Notice

    • The ROC issued a Show Cause Notice to the company and its officers on 5th September 2024.

  2. 📌 Company’s Response

    • The company admitted the default and assured future compliance.

    • A personal hearing was conducted on 17th February 2025, where the company reiterated its submission.

  3. 📌 ROC’s Decision

    • After considering the facts, the ROC imposed penalties under Section 10A(2) of the Companies Act, 2013 as follows:

      • 💰 ₹50,000 on Emperium Constructions Private Limited

      • 💰 ₹19,000 each on its directors

Key Takeaways

✔ Timely statutory compliance is crucial to avoid financial penalties and legal repercussions.
✔ Newly incorporated companies must ensure prompt filing of Form INC-20A to confirm share subscription payments.
✔ Delays, even if minimal, can result in significant penalties, emphasizing the need for strict adherence to regulatory deadlines.

This case serves as a cautionary example for companies and professionals to maintain compliance with statutory obligations and avoid unnecessary financial burdens. Non-Filing of Form INC-20A

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