It was introduced through the Companies (Amendment) Ordinance, 2019, and applies to companies incorporated on or after 2nd November 2018.
It mandates that such companies cannot commence business or borrow funds unless they fulfill certain filing requirements.

Who is Required to File:
Section 10A is mandatory for:
✔️ All Companies (other than those incorporated under Section 8 – i.e., not-for-profit companies) incorporated on or after 02.11.2018
Includes:
🔹 Private Limited Companies
🔹One Person Companies (OPCs)
🔹Public Limited Companies
🔹Limited by Shares

When It Is Required to Be Filed:
Form INC-20A (Declaration for commencement of business) must be filed within 180 days from the date of incorporation.

Documents Required:
The following documents are required while filing Form INC-20A:
1. Proof of Deposit of Paid-up Share Capital:
🔹Copy of bank statement showing credit of subscription money
🔹OR Bank Certificate issued to the company
2. Board Resolution (optional but recommended)
3. Certificate of Incorporation (auto-populated)
4. PAN of the Company
Note :- For companies engaged in regulated sectors (like insurance, banking, etc.), a copy of registration/approval from the regulator is also required.

Prescribed Filing Fee:
Filing fees for Form INC-20A are based on the authorised share capital of the company Like if Capital Upto Rs 1,00,000/-

⚠️ Consequences of Non-Filing:
1. Penalty on the Company: ₹50,000
2. Penalty on Each Officer in Default: ₹1,000/day (maximum ₹1 lakh)
3. Registrar of Companies (ROC) may initiate action for removal of the company name under Section 248 (Strike off).