ROC Compliance

INC-20A: Declaration for Commencement of Business

Quick Answer

Form INC-20A is a declaration that every company with share capital incorporated on or after 2 November 2018 must file within 180 days of incorporation, confirming that subscribers have paid for the shares they agreed to take. Failure attracts a penalty of Rs 50,000 on the company and Rs 1,000 per day (up to Rs 1 lakh) on each defaulting officer, and the ROC may strike off the company.

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What is INC-20A Commencement of Business?

INC-20A is one of the first compliances after company registration. Until it is filed, the company should not commence business or exercise borrowing powers. The form requires proof that subscription money has been received in the company's bank account. TaxBucket helps open the bank account, collects proof of capital deposit and files INC-20A well within the deadline.

Who needs it?

  • All companies with share capital incorporated on or after 2 November 2018
  • Private limited companies, OPCs and public companies

Key benefits

  • Legal permission to commence business and borrow
  • Avoids heavy penalties
  • Prevents strike-off by the ROC

Documents required

Checklist: keep these ready

  • Bank statement showing receipt of subscription money
  • Certificate of Incorporation
  • Proof of registered office (if INC-22 is not filed)
  • DSC of a director and certifying professional

Step-by-step process

  1. 1

    Step 1

    Open the company's current account

  2. 2

    Step 2

    Deposit share subscription money from subscribers

  3. 3

    Step 3

    Collect bank statement / certificate

  4. 4

    Step 4

    Prepare and file INC-20A on the MCA portal with professional certification

  5. 5

    Step 5

    Share the SRN and acknowledgement

Important to know

Key facts: fees, timelines, due dates and penalties

  • 1Due date: within 180 days of incorporation
  • 2Penalty: Rs 50,000 on the company and Rs 1,000 per day on officers, up to Rs 1 lakh
  • 3The company should not start business or borrow before filing
  • 4Not applicable to companies without share capital such as many Section 8 companies

Why choose TaxBucket for INC-20A Commencement of Business?

  • 14+ years of experience in tax, GST, MCA and legal compliance
  • ISO 9001:2015 certified company with a team of tax and compliance professionals
  • Transparent pricing with no hidden charges
  • End-to-end online process with a dedicated expert and regular status updates
  • Office in South West Delhi; serving clients across India

Frequently asked questions

Is INC-20A mandatory for every company?

It is mandatory for all companies having share capital incorporated on or after 2 November 2018. Companies without share capital are not required to file it.

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

The company and officers face penalties, and the ROC may initiate strike-off if it believes the company is not carrying on business.

Is a bank statement required for INC-20A?

Yes. Proof that subscribers have paid the subscription money must be attached.

Can INC-20A be filed late?

Yes, with additional fees, but penalties under the Act can still apply.

Get expert help with INC-20A Commencement of Business today

Call +91 7838-000-475 or send your enquiry and our expert will get back to you.

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This page is for general information. Laws, due dates and fees change often, so please speak to our team for advice on your case.

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