INC 20A Commencement of Business Declaration
Filing form INC 20A within one hundred and eighty days of incorporation by every Pvt Ltd, OPC and public limited company. We coordinate bank statement evidence, professional certification and electronic filing on the MCA V3 portal.
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What Form INC 20A Is Under Section 10A
Section 10A of the Companies Act 2013, introduced by the Companies (Amendment) Ordinance 2018 and effective from second November 2018, requires every Pvt Ltd, OPC and public limited company to file a declaration of commencement of business within one hundred and eighty days of incorporation. The declaration is filed in form INC 20A and confirms that the subscribers have paid the value of shares they agreed to subscribe at the time of incorporation. Without this filing, the company is legally barred from commencing business or exercising borrowing powers.
Form INC 20A applies only to companies incorporated on or after second November 2018. Older companies are not subject to this requirement. The form is short and procedurally simple but consequential. Missing the 180 day deadline can trigger a fifty thousand rupee penalty on the company plus one thousand rupees per day on every officer in default.
What INC 20A Filing Confirms
Paid Up Capital Deposited
Each subscriber has paid the value of shares they agreed to subscribe. The total paid up capital matches the figures declared in SPICe+ at incorporation.
Bank Statement Evidence
The current account of the company shows credit of the subscription amount from each subscriber. The bank statement is attached as proof.
Registered Office Verified
The registered office is in the address declared in SPICe+. INC 22 (intimation of registered office) is also filed within thirty days of incorporation in parallel.
Professional Certification
A Practicing Company Secretary, Chartered Accountant or Cost Accountant certifies the declaration with a Class 3 DSC.
Step by Step INC 20A Filing Process
- Open Company Current AccountWithin the first thirty days of incorporation, the company current account is opened with a bank using the Certificate of Incorporation, MOA, AOA, PAN and board resolution.
- Deposit Paid Up CapitalEach subscriber deposits the value of their subscribed shares into the current account. The bank statement reflects each credit by name.
- Issue Share CertificatesWithin sixty days of incorporation, share certificates are issued to subscribers and stamp duty is paid as per the state of registered office.
- Draft INC 20AForm INC 20A is drafted with the bank statement attachment and the director declaration confirming compliance with the prescribed conditions.
- Professional Certification and DSCThe certifying professional verifies the bank statement and the share allotment record and affixes a Class 3 DSC on the form.
- File on MCA V3 PortalForm INC 20A is uploaded with the bank statement attachment and submitted before the 180 day deadline. SRN is generated on successful submission.
The most common INC 20A mistake we see is founders treating the 180 day window as a soft deadline. It is not. ROCs in several states are actively cross checking new incorporations against INC 20A filings and issuing strike off notices to companies that miss the window. File INC 20A within thirty to sixty days of opening the current account, not in the last week of the 180 day window.
Frequently Asked Questions on INC 20A
What is form INC 20A and who files it?
Form INC 20A is the declaration of commencement of business filed by every Pvt Ltd, OPC and public limited company incorporated on or after second November 2018 under section 10A of the Companies Act 2013. It declares that the subscribers have deposited the paid up share capital and that the company is ready to commence business.
What is the INC 20A due date?
Within one hundred and eighty days of the date of incorporation of the company. The window is hard. The company cannot legally commence operations or borrow money before INC 20A is filed.
What happens if INC 20A is not filed within 180 days?
Two consequences. First, a fixed penalty of fifty thousand rupees on the company and one thousand rupees per day of default on every officer in default, up to a cap of one lakh per officer. Second, the ROC can move to strike off the company from the register if it believes the company has not commenced business and is unlikely to do so.
What documents are filed with INC 20A?
Proof of paid up share capital deposit, typically a bank statement showing the credit of the subscription amount from each subscriber. The form is signed by a director and certified by a Practicing Company Secretary, Chartered Accountant or Cost Accountant.
Can INC 20A be filed in advance of operations starting?
Yes, and that is the recommended path. As soon as the paid up share capital is deposited in the company current account, INC 20A can be filed. There is no requirement to wait until actual business begins. Filing early protects the company from the 180 day deadline and any compliance risk that follows.
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