Commencement of Business — Form INC-20A Filing | CS Compliance

Company Law · MCA Compliance

Commencement of Business — Form INC-20A declaration within 180 days of incorporation.

Every company incorporated on or after 2 November 2018 and having a share capital must file Form INC-20A — Declaration for Commencement of Business — with the Registrar of Companies within 180 days of its date of incorporation. Without this declaration, the company cannot commence any business or exercise any borrowing powers.

Failure to file INC-20A within the prescribed period attracts a penalty of Rs. 50,000 on the company and Rs. 1,000 per day on every officer in default — up to a maximum of Rs. 1,00,000 per officer. Beyond penalties, the ROC may initiate action to strike off the company's name if the declaration is not filed for 180 days post-incorporation.

We assist newly incorporated companies with the complete INC-20A filing process — verifying that paid-up capital has been received in the bank account, obtaining the required bank statement, preparing the declaration, and filing the form on MCA21 within the prescribed window.

What Our Commencement of Business Service Covers

INC-20A Eligibility Review

Confirming the company's obligation to file INC-20A and the exact 180-day deadline from the date of incorporation.

Bank Account Verification

Verifying that the subscribed paid-up share capital has been credited to the company's bank account as required for the declaration.

Bank Statement Collection

Obtaining the bank statement evidencing receipt of share capital — the key supporting document for INC-20A.

INC-20A Preparation

Preparing Form INC-20A with accurate details — CIN, paid-up capital, and bank account details — for director approval.

Director DSC & Filing

Obtaining the director's digital signature and filing INC-20A on MCA21 well within the 180-day window.

SRN & Acknowledgement

Obtaining the Service Request Number and filing acknowledgement from MCA21 confirming successful submission.

Compliance Calendar Update

Noting the filing completion and confirming the company's legal capacity to commence business operations.

Post-Filing Advisory

Advising on any follow-up filings or licences required before the company commences its stated business activities.

Our Process

Incorporation Date Verification

Confirm the date of incorporation and calculate the exact 180-day INC-20A deadline.

Capital Receipt Confirmation

Verify that subscribed share capital has been received in the company's bank account.

Document Collection

Obtain bank statement and other required documents from the company and directors.

INC-20A Preparation & Director Approval

Prepare and share the draft form with the responsible director for review and DSC approval.

MCA21 Filing & Acknowledgement

File INC-20A on MCA21 and obtain the SRN and acknowledgement confirming compliance.

Why It Matters

✓INC-20A filed within the 180-day window — no penalty exposure

✓Company legally authorised to commence business immediately after filing

✓Bank statement verified before filing — no rejection risk on MCA21

✓Director DSC obtained and e-form submitted with correct data

✓SRN obtained — filing record maintained for compliance audit

✓Penalty of Rs. 50,000 on company avoided by timely action

✓Per-day officer penalties (Rs. 1,000/day) eliminated by early filing

✓ROC strike-off risk eliminated by completing the declaration on time

Frequently Asked Questions

Form INC-20A is a Declaration for Commencement of Business that every company with share capital incorporated on or after 2 November 2018 must file with the ROC. It declares that the subscribers have paid up the value of shares agreed to be taken by them and evidences this with a bank statement. Without this filing, the company cannot commence business or borrow.

Form INC-20A must be filed within 180 days from the date of incorporation of the company. There is no provision to extend this deadline — companies must ensure the subscribed capital is received and the filing is completed within this period.

Failure to file INC-20A attracts a penalty of Rs. 50,000 on the company and Rs. 1,000 per day (up to Rs. 1,00,000) on every officer in default. Additionally, if INC-20A is not filed within 180 days, the ROC may initiate proceedings to remove the company's name from the register under Section 248.

INC-20A is required only for companies that have a share capital and were incorporated on or after 2 November 2018. Companies incorporated before this date and companies limited by guarantee (without share capital) are not required to file INC-20A.

The primary document required is a bank statement of the company's bank account showing credit of the subscribed share capital from the subscribers. The bank account must be in the company's name, opened after incorporation, and the statement must clearly reflect the capital receipt.

Need to file INC-20A for commencement of business?

Contact our CS team — we handle INC-20A preparation, director approval, and MCA21 filing within the prescribed 180-day window.