Commencement of Business (INC-20A)

Commencement of Business (INC-20A) in India: Filing, Documents & Penalties

Form INC-20A is the mandatory declaration every company with share capital must file to legally start business and exercise borrowing powers. This guide explains who must file, the 180-day deadline, the exact MCA process, the heavy penalties for missing it, and how KanoonPe files it for you with a flat all-inclusive quote, verified by a practising Company Secretary.

Quick summary

• What it is: A declaration in Form INC-20A confirming every subscriber has paid the agreed share capital.
• Governed by: Section 10A of the Companies Act, 2013.
• Mandatory for: Every company with share capital incorporated on or after 2 November 2018.
• Deadline: Within 180 days of the date of incorporation.
• KanoonPe price: Flat, all-inclusive quote on a free callback · Timeline: typically 1–2 working days.

Quick facts

What is Form INC-20A?

Form INC-20A is the declaration of commencement of business that a company having share capital must file with the Registrar of Companies (RoC) to confirm that every subscriber to the memorandum has paid the value of the shares they agreed to take. Until this form is filed and approved, the company cannot legally begin business operations or exercise any borrowing powers.

Introduced by the Companies (Amendment) Ordinance, 2018 and now embedded in Section 10A of the Companies Act, 2013, the requirement exists to curb shell companies that incorporate but never bring in the promised capital. The form is a simple but critical post-incorporation compliance - think of it as switching your company "on" in the eyes of the law.

Who needs to file INC-20A?

You must file Form INC-20A if all of the following apply:

• Your company is a company having share capital (private limited, one person company, public limited).
• It was incorporated on or after 2 November 2018.
• The company has not yet filed its declaration of commencement.

Who is exempt:

• Companies incorporated before 2 November 2018.
• Companies not having share capital (for example, certain Section 8 companies limited by guarantee without share capital).

Benefits of filing INC-20A on time

1. Legal authority to operate - you can begin business activity and sign commercial contracts with confidence.
2. Borrowing power unlocked - banks and lenders require an approved INC-20A before disbursing loans or overdrafts.
3. Avoids strike-off - the RoC can remove a defaulting company from the register.
4. Clean compliance record - essential for due diligence during funding, tenders, and M&A.
5. Avoids steep penalties - on the company and every director.

Documents required for INC-20A

• Proof of subscription money received - bank statement of the company showing the paid-up capital credited from each subscriber, or bank advice/deposit slips.
• Company's bank account details - the current account opened post-incorporation.
• For companies pursuing an activity that needs sectoral registration (e.g. RBI, SEBI, IRDAI), a copy of the registration/approval from the concerned regulator.
• Digital Signature Certificate (DSC) of an authorised director.
• Certification by a practising Chartered Accountant, Company Secretary, or Cost Accountant.

INC-20A filing process (step by step)

KanoonPe prepares and files this on the MCA portal; here is what happens.

1. Confirm capital is paid in. We verify that each subscriber has deposited their share money into the company's bank account.
2. Collect proof. We obtain the bank statement and any sectoral regulator approval, where applicable.
3. Prepare Form INC-20A. We fill the declaration with company details and attach the proof of paid-up capital.
4. Professional certification. A practising CS/CA certifies the form.
5. Affix DSC and file. The director signs digitally and we file the form on the MCA portal with the applicable fee.
6. SRN & approval. A Service Request Number is generated for tracking; the RoC processes and approves the filing.

Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for INC-20A filing within one business hour.

INC-20A fees in India

The cost is a small government filing fee (based on authorised capital) plus the professional fee for preparing and certifying the form.

KanoonPe offers a flat, all-inclusive quote - form preparation, professional certification, and MCA filing bundled into one transparent number.

Additional (late) fees apply if filed after the 180-day deadline - see penalties below.

INC-20A due date and timeline

Penalties for not filing INC-20A

Non-filing is treated seriously under Section 10A:

• Company penalty: ₹50,000.
• Officer/director penalty: ₹1,000 per day of default, up to a maximum of ₹1,00,000 per officer.
• Risk of strike-off: If the RoC has reasonable cause to believe the company is not carrying on business, it may initiate action to remove the company's name from the register.

Late filing beyond 180 days also attracts escalating additional fees (a multiple of the normal fee based on the delay).

Why choose KanoonPe

• Transparent flat pricing - one all-inclusive number, no surprise add-ons.
• Filed-on-time or refund - every order ships with a written SLA.
• One accountable case owner - a single named manager owns your filing.
• Live status tracking - follow your SRN and approval in real time.

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