Home |Company Registration | We incorporated company for 10 Lakhs and deposited check of 2 Lakhs as commencement capital. Can we modify the commencement capital from 10 lakhs to 2lakhs? What forms need to be submitted for change of capital then file form 20 a to be a complaint? We made 20 lakhs from the business so far. 10 lacs was both authorized and subscribed amount and instead of 10 lacs we had deposited only 2 lacs in companies account and commenced the business. What forms should be submitted to reduce the authorized and subscribed amount? Form MGT -14?

We incorporated company for 10 Lakhs and deposited check of 2 Lakhs as commencement capital. Can we modify the commencement capital from 10 lakhs to 2lakhs? What forms need to be submitted for change of capital then file form 20 a to be a complaint? We made 20 lakhs from the business so far. 10 lacs was both authorized and subscribed amount and instead of 10 lacs we had deposited only 2 lacs in companies account and commenced the business. What forms should be submitted to reduce the authorized and subscribed amount? Form MGT -14?

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B Samrish & Co. Company Secretaries B Samrish & Co. Company Secretaries, www.bsamrishindia.com verified
Answered on August 23,2022

Regarding the contravention:

 

The company has contravened the provisions of Section 10A of the Companies Act 2013.

 

Penalty for contravention: the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.

 

How to set it right:

 

Please note that offences of serious nature are non-compoundable. Non-compoundable offences are those which involve mandatory imprisonment upon conviction, comprise of serious offences affecting public interest. Since, the subject contravention is technical in nature, it falls under the category of compoundable offences, i.e. offences punishable with fine only, or punishable with fine or imprisonment, or both.

 

The next course of action would be to file the form INC-20A first. The case will be dealt by ROC through in-house adjudication framework.

 

To connect with us for any professional assistance, you may like to visit www.bsamrishindia.com.

 

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Form INC 20A : Declaration of Commencement of Business

Form INC 20A: Declaration for the Commencement of Business is the declaration that the Director of the Company needs to file with the Registrar of Companies. This declaration is filed in For..
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