Which companies are exempt from INC-20A?

Companies incorporated before 2 November 2018 and companies without share capital (e.g. Section 8 companies) are exempt.

What bank proof is required for INC-20A?

A bank certificate or current account statement showing credit of subscription amounts from all subscribers, with the company name and account number clearly shown.

Commencement of Business (INC-20A)

Q: What happens if INC-20A is not filed within 180 days?

Penalty of ₹50,000 on the company and ₹1,000 per day on each defaulting officer. The RoC may also initiate strike-off proceedings under Section 248(1)(c).

Q: Can a company commence operations before filing INC-20A?

No. Section 10A prohibits any business activity or borrowing before INC-20A is filed. Pre-filing operations attract penalties.

File the Mandatory Declaration Before Your Company Starts Operations or Exercises Borrowing Powers

Every company incorporated on or after 2 November 2018 that has a share capital must file a Declaration of Commencement of Business in Form INC-20A with the Registrar of Companies within 180 days of its incorporation. This declaration, made by a director, confirms that every subscriber to the MOA has paid the value of shares agreed to be taken by them.

A company that has not filed INC-20A cannot legally commence any business operations, exercise any borrowing powers, or enter into any contracts that constitute business activity. Failure to file within 180 days makes the company liable for a penalty and the Registrar may initiate action for strike-off of the company under Section 248. Filing INC-20A on time is one of the first key post-incorporation steps in the company compliance lifecycle and sets the foundation for all future annual filings and operations.

Our INC-20A Filing Services

INC-20A Eligibility Review

Confirming whether your company is required to file INC-20A (applicable to companies with share capital incorporated after 2 November 2018).

Subscription Amount Verification

Verifying that all subscribers to the MOA have paid their subscription amounts into the company's bank account before filing the declaration.

Bank Statement Preparation

Obtaining and formatting the bank certificate or statement required as proof of receipt of subscription money from all subscribers.

Director Declaration Drafting

Preparing the director's declaration in the prescribed format for Form INC-20A confirming compliance with Section 10A requirements.

MCA Portal Filing

Filing Form INC-20A on the MCA21 portal with all required attachments within the 180-day deadline.

Penalty Waiver Advisory

For companies that have missed the INC-20A deadline, advising on late filing penalties and compounding of offences to regularise the non-compliance.

Key Facts About INC-20A Filing

Mandatory for all companies with share capital incorporated on or after 2 November 2018
Must be filed within 180 days of the date of incorporation of the company
All subscribers must have paid their subscription amounts before filing — no partial payment accepted
A bank certificate or bank statement showing credit of subscription money is required as attachment
Penalty for non-filing: ₹50,000 on the company and ₹1,000 per day on every officer in default
A company that has not filed INC-20A cannot commence any business or borrow any money
The RoC can initiate strike-off proceedings against companies that fail to file within 180 days

Frequently Asked Questions

What is Form INC-20A and why is it required?

Form INC-20A is the Declaration of Commencement of Business filed by a director under Section 10A of the Companies Act. It confirms that every subscriber to the MOA has paid the value of shares agreed to be taken. Until this is filed, the company legally cannot commence business operations, exercise borrowing powers, or take any loan or deposit. It was introduced to prevent shell companies from operating without genuine subscriber investment.

What happens if INC-20A is not filed within 180 days?

Failure to file within 180 days makes the company liable to a penalty of ₹50,000, and every officer in default (typically the directors) is personally liable to a penalty of ₹1,000 per day of default. Additionally, the Registrar of Companies is empowered to initiate proceedings for striking off the company under Section 248(1)(c) if INC-20A is not filed within 180 days of incorporation.

Can a company commence operations before filing INC-20A?

No. Section 10A prohibits a company from commencing any business activity or exercising borrowing powers until INC-20A is filed. Any business activity carried out before INC-20A is filed is legally problematic and the company and its officers are liable to penalties. The company can, however, complete its internal setup tasks like opening bank accounts and obtaining PAN before filing INC-20A.

Which companies are exempt from filing INC-20A?

Companies incorporated before 2 November 2018 are not required to file INC-20A. Additionally, companies without share capital (such as Section 8 charitable companies limited by guarantee) are not required to file INC-20A. All other companies incorporated after 2 November 2018 with share capital, including both private limited and public limited companies, must file.

What bank proof is required to file INC-20A?

The company must attach either a certificate from the bank confirming that subscription amounts have been received into the company's current account, or a bank account statement clearly showing the credit of subscription money from all subscribers. The statement must show the company's name, bank account number, and the amounts credited from each subscriber. Some banks issue a separate bank certificate specifically for INC-20A purposes.