The Classic Partners LLP
Commencement of Business Certificate (INC-20A)
Timely filing of the declaration of commencement of business in Form INC-20A under Section 10A of the Companies Act, 2013 — so your newly incorporated company can legally start business, borrow funds, and avoid heavy penalties or strike-off by the ROC.
Talk to a Startup Compliance ExpertWhat is the Commencement of Business Declaration?
Under Section 10A of the Companies Act, 2013, every company incorporated on or after 2 November 2018 and having a share capital must file a declaration in Form INC-20A within 180 days of incorporation, confirming that every subscriber to the memorandum has paid the value of the shares agreed to be taken. Until this declaration is filed, the company cannot commence any business or exercise borrowing powers.
The form is certified by a practising professional and must be backed by the company's bank statement showing receipt of the subscription money. The registered office must also be verified with the ROC — if it was not filed at incorporation, a registered office filing in INC-22 is completed first. Once INC-20A is approved, your regular annual ROC compliance calendar begins.
Consequences of Not Filing INC-20A
- The company cannot legally commence business or borrow money.
- Penalty of ₹50,000 on the company for default under Section 10A.
- Penalty of ₹1,000 per day on every officer in default, up to ₹1,00,000.
- The ROC may initiate action to strike the company's name off the register if the declaration is not filed within 180 days.
- Banks, investors, and counterparties routinely check INC-20A status before transacting.
INC-20A Filing Procedure — Step by Step
- Open the company's current account immediately after incorporation.
- Each subscriber remits their subscription money into the company's bank account.
- Obtain the bank statement evidencing receipt of the full subscription amount.
- Verify the registered office with the ROC (file INC-22 if not done at incorporation).
- Prepare Form INC-20A with attachments and obtain certification from a practising CA, CS, or CMA.
- File the form on the MCA portal within 180 days of incorporation and preserve the approval (SRN) for records.
Our Commencement of Business Services
Subscription Proof Compilation
Tracking subscriber remittances and compiling clean bank evidence for the form.
INC-20A Preparation & Filing
Form drafting, attachments, and submission on the MCA V3 portal.
Professional Certification
Certification of the declaration by a practising professional as required by law.
Registered Office Verification
INC-22 filing and address documentation where verification is pending.
Delay & Additional Fees
Computation of additional fees and quick filing where the 180-day window has passed.
Post-Incorporation Kit
First auditor appointment, share certificates, registers, and the year-one calendar.
Why Choose The Classic Partners
- Startup-focused team that handles INC-20A alongside your complete post-incorporation setup.
- Deadline tracking from day one so the 180-day window is never breached.
- Clean documentation of subscription money that satisfies banks and future investors.
- Transparent fees and a dedicated point of contact for founders.
Frequently Asked Questions
What is the due date for filing Form INC-20A?
INC-20A must be filed within 180 days from the date of incorporation of the company. Filing after 180 days is possible only with additional fees, and prolonged default exposes the company to penalties and strike-off action.
Which companies are required to file INC-20A?
Every company incorporated on or after 2 November 2018 that has a share capital must file the declaration. Companies without share capital and LLPs are not required to file INC-20A.
What attachments are required with INC-20A?
The company's bank statement showing receipt of the subscription money from all subscribers is the key attachment. Companies in regulated sectors must also attach the registration or approval from the sectoral regulator such as RBI, SEBI, or IRDAI.
What is the penalty for not filing INC-20A?
The company is liable to a penalty of ₹50,000, and every officer in default is liable to ₹1,000 per day of default up to a maximum of ₹1,00,000. The ROC may also initiate strike-off proceedings against the company.
Can a company sign contracts or borrow before filing INC-20A?
No. Until the declaration is filed, the company cannot commence any business or exercise borrowing powers. Only acts incidental to incorporation — such as opening a bank account and receiving subscription money — are permissible.
Can INC-20A be filed after the 180-day deadline?
Yes, the form can still be filed with additional fees that rise with the length of the delay. However, the company remains exposed to penalties and strike-off risk for the period of default, so late filing should be completed at the earliest.
Just incorporated? File your INC-20A on time.
Get your subscription proof, certification, and INC-20A filing completed well within the 180-day deadline.
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