INC-20A Filing (Declaration for Commencement of Business)
1. What is INC-20A?
INC-20A is a mandatory declaration of commencement of business filed by companies registered in India after November 2, 2018.
📝 Applicable to:
✅ All companies with share capital incorporated under the Companies Act, 2013.
🚫 Not applicable to: Companies without share capital.
📌 Legal Provision: Section 10A of the Companies Act, 2013 and Rule 23A of Companies (Incorporation) Rules, 2014.
2. Purpose of INC-20A
🔹 Confirms that the company has received the paid-up capital from its shareholders.
🔹 Ensures compliance before starting any business operations.
🔹 Helps prevent shell companies and financial fraud.
3. Filing Timeline & Due Date
📆 Deadline: Within 180 days from the date of incorporation.
🚨 Late Filing Consequences:
- Penalty for Company: ₹50,000
- Penalty for Directors: ₹1,000 per day (up to ₹1,00,000)
- Company can be struck off by ROC if not filed.
4. Documents Required for INC-20A Filing
✅ Bank Statement showing receipt of paid-up capital.
✅ Subscribers’ proof of payment for shares (if applicable).
✅ Certificate of Registration (for regulated businesses) (e.g., RBI approval for NBFCs).
5. Step-by-Step Filing Process
Step 1: Open a Bank Account
🔹 Ensure all subscribers deposit their share capital into the company’s bank account.
Step 2: Prepare & Verify Documents
🔹 Obtain bank statement as proof of fund receipt.
🔹 If required, get a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant certification.
Step 3: File Form INC-20A on MCA Portal
🔹 Log in to MCA (Ministry of Corporate Affairs) Portal.
🔹 Fill in details like CIN (Corporate Identification Number), date of incorporation, and capital details.
🔹 Upload supporting documents.
Step 4: Pay Government Fees
💰 Fees depend on company authorized capital:
| Authorized Capital | Government Fee |
|---|---|
| Up to ₹1,00,000 | ₹200 |
| ₹1,00,000 – ₹5,00,000 | ₹300 |
| ₹5,00,000 – ₹25,00,000 | ₹400 |
| ₹25,00,000 – ₹1,00,00,000 | ₹500 |
| Above ₹1,00,00,000 | ₹600 |
Step 5: ROC Approval
🔹 If all details are correct, ROC issues Acknowledgment within 1-2 weeks.
🔹 Company can start business operations & borrow funds legally.
6. Consequences of Non-Filing
🚫 If INC-20A is not filed:
❌ The company cannot commence business.
❌ The company cannot borrow funds.
❌ ROC may strike off the company.
❌ Directors may become liable for penalties.
7. FAQs on INC-20A
❓ Is INC-20A required for all companies?
✅ Yes, but only for companies with share capital.
❓ Can a company start business before filing INC-20A?
🚫 No, business operations can start only after approval.
❓ What if a company has not received share capital?
⚠️ The company cannot file INC-20A until the share capital is received in its bank account.
❓ Who certifies INC-20A?
🔹 A Company Secretary (CS), Chartered Accountant (CA), or Cost Accountant must certify the form.
8. Summary
✔ Mandatory for all companies with share capital (post-Nov 2, 2018).
✔ Deadline: Within 180 days of incorporation.
✔ Late filing penalty up to ₹1,00,000 for directors.
✔ Required before business operations & borrowing money.
✔ Filing fee depends on authorized capital.