INC-20A (Commencement of Business)

Start Your Company’s Business Legally with Timely INC-20A Filing

After a company is incorporated, one important post-incorporation compliance is the filing of Form INC-20A, commonly known as the Declaration for Commencement of Business. This filing is required under Section 10A of the Companies Act, 2013 for eligible companies and is one of the first critical ROC compliances after incorporation.

A company covered under Section 10A cannot lawfully commence business activities or exercise borrowing powers until the declaration is filed. The purpose of this filing is to confirm that the subscribers to the Memorandum have paid the value of shares agreed to be taken by them and that the company is ready to commence operations.

At CLEANFILINGS, we assist companies with INC-20A filing, commencement of business declaration, capital proof review, board resolution support, and end-to-end ROC compliance.

What is INC-20A?

INC-20A is the MCA e-form used for filing the Declaration for Commencement of Business with the Registrar of Companies (ROC).

Through this form, a director of the company declares that:

✔ every subscriber to the Memorandum has paid the value of shares agreed to be taken by him / her / it, and
✔ the company has complied with the requirements necessary to commence business.

This declaration is filed under Section 10A of the Companies Act, 2013 read with Rule 23A of the Companies (Incorporation) Rules, 2014. The form is required to be filed with ROC within 180 days from the date of incorporation of the company.

Latest Legal Position on INC-20A

The current compliance position continues to require timely filing of INC-20A within 180 days of incorporation for applicable companies having share capital incorporated on or after 2 November 2018. The filing remains a mandatory post-incorporation compliance and is directly linked to the company’s legal ability to commence business and exercise borrowing powers.

Key practical points under the current framework

1. INC-20A is mandatory for eligible newly incorporated companies

Companies with share capital incorporated on or after 2 November 2018 are generally required to file INC-20A.

2. Filing deadline is 180 days from incorporation

The declaration must be filed within 180 days from the date of incorporation of the company.

3. Subscriber capital must actually be received before filing

INC-20A is not merely a formality. The company should have proof that the subscribed share capital has been received from the subscribers before the declaration is filed. A bank statement / bank proof showing receipt of subscription money is one of the key supporting documents.

4. The company cannot commence business or borrow before filing

A company covered by Section 10A should not commence business operations or exercise borrowing powers before filing the declaration.

5. Delay can trigger penalty and strike-off risk

Non-filing within time can lead to penalty on the company and its officers in default, and the ROC may also initiate action for removal of the company’s name where appropriate.

Who Needs to File INC-20A?

INC-20A is generally applicable to:

✔ Private Limited Companies incorporated on or after 2 November 2018 and having share capital
✔ Public Limited Companies incorporated on or after 2 November 2018 and having share capital
✔ One Person Companies (OPCs) having share capital, if incorporated on or after the applicable date and covered by Section 10A
✔ Other companies with share capital to which Section 10A applies

Who Does Not Need INC-20A in Normal Cases?

As a broad practical rule, INC-20A is generally not applicable in the following situations:

✔ companies incorporated before 2 November 2018
✔ companies without share capital
✔ LLPs and partnership firms, since INC-20A is a company-law form under the MCA framework for companies

However, the company’s exact structure and incorporation details should always be checked before assuming non-applicability.

Why is INC-20A Important?

1. It unlocks commencement of business

INC-20A is one of the first statutory confirmations that the company has actually received its subscribed capital and is ready to begin operations.

2. It enables lawful exercise of borrowing powers

A company covered by Section 10A should not exercise borrowing powers before filing the declaration.

3. It is a key post-incorporation ROC compliance

Missing this filing can create a compliance default at the very start of the company’s life cycle.

4. It helps establish proper capital trail

The filing ensures that the subscriber money has actually been received in the company’s bank account and that the capital structure shown at incorporation has been acted upon.

5. It avoids unnecessary penalty and strike-off risk

Timely filing helps the company avoid default exposure and operational complications later.

Time Limit for Filing INC-20A

Due date

Form INC-20A must be filed within 180 days from the date of incorporation of the company.

Practical example

If a company is incorporated on 1 July 2026, the INC-20A due date will generally fall 180 days from the incorporation date.

Because this is a strict post-incorporation timeline, companies should ideally complete the bank account opening and capital deposit formalities well in advance of the deadline.

What Needs to Be Done Before Filing INC-20A?

Before INC-20A is filed, the company should typically complete the following:

1. Open the company’s bank account

The company should open a bank account in its own name after incorporation.

2. Receive subscription money from subscribers

Each subscriber to the Memorandum should pay the value of shares agreed to be taken by him / her / it.

3. Ensure capital receipt is traceable

The capital should be properly reflected in the company’s bank records so that documentary proof can be attached.

4. Check whether any sectoral approval is required

If the company’s objects require approval / registration from a sectoral regulator, the relevant approval details may need to be disclosed in the form where applicable.

Documents Required for INC-20A Filing

The exact document set may vary depending on the company and sector, but commonly the following are required:

• Certificate of Incorporation of the company
• CIN and basic company details
• PAN of the company
• Bank statement / bank proof showing receipt of subscription money from subscribers
• Details of subscribed share capital and shareholding
• Board Resolution / authorisation for filing, where required as part of internal compliance support
• DSC of the director signing the form
• Professional certification details of CA / CS / CMA in practice
• Sectoral approval / registration details, where the company’s business requires such approval before commencement, if applicable

Proof of Subscriber Capital – Most Important Attachment

One of the most critical aspects of INC-20A filing is proof that the subscribers have paid the value of shares subscribed by them.

Commonly used supporting proof includes:

✔ company bank statement showing receipt of subscription money
✔ banking trail / deposit proof from subscribers
✔ supporting capital confirmation records, where maintained internally

This is the core basis of the declaration and should be carefully documented.

INC-20A Filing Process

Step 1 – Review of applicability

We first confirm whether the company is covered under Section 10A and whether INC-20A filing is required.

Step 2 – Collection of incorporation and capital documents

We collect the Certificate of Incorporation, capital details, subscriber details, bank proof, and other required information.

Step 3 – Verification of capital receipt

We review whether the full subscribed share capital has been received from the subscribers and whether documentary proof is adequate for filing.

Step 4 – Preparation of INC-20A

The form is prepared with company details, declaration details, and sectoral approval particulars where relevant.

Step 5 – Professional certification and filing

The form is digitally signed and professionally certified by a practising CA / CS / CMA, as applicable, and then filed on the MCA portal.

Step 6 – Acknowledgement and compliance support

Post-filing acknowledgement and record support are provided for the company’s compliance file.

What Happens If INC-20A Is Not Filed on Time?

Failure to file INC-20A within the prescribed time can lead to serious consequences.

1. Penalty on the company

The company may be liable to a penalty of ₹50,000.

2. Penalty on officers in default

Every officer in default may be liable to a penalty of ₹1,000 per day during which the default continues, subject to the statutory cap.

3. Business commencement issue

The company may face a legal and practical hurdle in commencing business and exercising borrowing powers before the declaration is filed.

4. Risk of ROC action / strike-off proceedings

If the Registrar has reasonable cause to believe that the company is not carrying on business or operations, action under the strike-off framework may be initiated in appropriate cases.

Can INC-20A Be Filed Late?

From a practical compliance perspective, even if the due date has passed, companies generally still proceed with filing the form and then handle any consequential adjudication / penalty process if initiated by ROC. Delay, however, should be avoided because it can trigger penalty exposure and unnecessary compliance complications.

Common Situations Where We Help

We commonly assist clients in the following INC-20A situations:

✔ newly incorporated private limited companies needing commencement filing
✔ OPCs and small companies completing first ROC compliance
✔ companies where bank account opening delayed the capital deposit process
✔ cases where subscriber payment proof needs to be organised properly
✔ companies needing post-incorporation compliance support bundle
✔ delayed INC-20A filing and default regularisation support

What Do We Provide?

Our INC-20A services may include:

✔ applicability review for commencement of business filing
✔ document checklist and capital proof review
✔ preparation and filing of Form INC-20A
✔ guidance on subscriber capital deposit documentation
✔ professional certification coordination
✔ delayed filing support and practical compliance guidance
✔ end-to-end ROC support for commencement of business compliance

Why Choose CLEANFILINGS?

✔ practical post-incorporation compliance support for new companies
✔ accurate INC-20A filing with proper capital proof review
✔ assistance for private limited company, OPC, and startup compliance
✔ support in avoiding early-stage ROC defaults and penalty exposure
✔ end-to-end documentation, filing, and follow-up assistance
✔ pan-India service support

If your company has recently been incorporated and needs to commence business legally, INC-20A filing should be completed on time and with proper supporting documents. CLEANFILINGS can help you complete the entire process smoothly and compliantly.

CLEANFILINGS PRIVATE LIMITED

Smart Filings. Clean Future.