INC-20A - Sectoral Regulator approval

[Vishwanath Pai]

Dear Members

We have an Private Limited client with Insurance Marketing Firm (IMF) business object, which is required to file Form INC-20A by end of May 2019 (180 days). IRDA NOC was obtained for name reservation. Promoters have bought in the paid up share capital as per MOA. 

Company is in process of applying to IRDA for registration as IMF as promoters have to increase net-worth of company and Directors have to undergo training and has to put in place the required infrastructure as per IRDA regulations. Final IRDA approval may be received only in June / July 2019. From April 2019, Company will incur costs like office rent, staff salary, etc but there is no income by way of insurance commission.

In such a scenario, should the company 

1) file INC-20A with late fees in June / July after approval of IRDA. If ROC notice is received, then Company would have to reply that there was delay in obtaining IRDA permission.

2) file INC-20A now as capital as per MOA has been bought and mark the Sectoral Regulator as 'No' in with a clarification letter that IRDA approval is in progress. But this appears to be against the spirit of Rule 23A which requires sectoral regulator's approval to be mentioned. However Sec 10A(2) / Sec 10A(3) provides for daily late fee / penalty and ROC can initiate removal of company name if form INC-20A not filed within 180 days. 

Request for views of learned members.

Regards

Vishwanath 

[Pcs_sandip Lathiya]

File Inc20a with additional fees 

After getting registration certificate from IRDA.

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[Shrikar Harihar Bhat]

Hello sir,

How did you proceed in this scenerio? We are also kind of in similar situation. What do you suggest us?