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October 7, 2026 · Guides

INC-20A and Commencement of Business for a Nidhi

INC-20A for a Nidhi company is the declaration that you have commenced business, and it carries its own deadline of 180 days from incorporation. Founders tend to focus on NDH-4 and forget this one, because it looks like a simple formality. It is simple, but missing it creates trouble you do not need.

In this guide

What INC-20A is

INC-20A is the commencement of business declaration filed with the Registrar. It applies to a company with share capital and has to be filed within 180 days of incorporation. As the form reads, you confirm that every subscriber to the MOA has paid for the shares agreed, and you verify the registered office. Read the current form on the MCA portal before you file.

Two clocks that start on the same day

FilingDeadline from incorporation
NDH-4 (Nidhi declaration)120 days
INC-20A (commencement)180 days

Both run from the date on the certificate of incorporation. NDH-4 comes first, so most Nidhis finish it and then deal with INC-20A before day 180. Our post on how long Nidhi registration takes lays the two out on one timeline, and the NDH-4 detail is in the main NDH-4 post.

What you need before filing

  • Share capital actually paid in. For a Nidhi that means at least Rs 10 lakh of paid-up equity capital, as per the Rules as we read them.
  • Proof of payment from every subscriber, which usually means bank statements matching the share allotment.
  • A registered office that can be verified, with address proof and a director willing to certify it. See our guide to the registration process for the office papers.
  • Digital signatures of a director and a practising professional where the form asks for one.

Where filings go wrong

The usual snag is capital. Subscribers promise to pay in instalments, so on day 180 the money is not all in. Another is a registered office whose utility bill or rent agreement is in somebody else’s name with no consent letter. Tidy both early. If your paid-up capital is not in order, the capital planning in our capital post is worth reading too.

If you miss the 180 days

A delayed INC-20A can attract penalties and notices from the ROC, and some companies find the Registrar asking questions about the company status. We would not guess the exact amount, because it depends on the law and fee schedule in force. File as soon as you realise the miss, and ask your CA to check the current position.

What comes after

Once commencement is on record, your regular calendar begins: half-yearly returns, audit, AGM and the annual forms. We have set these out in the annual compliance checklist. For the whole path from name approval onward, read the pillar guide to Nidhi company registration, or see our Nidhi registration service if you want us to file it.

Need help with your Nidhi company? See our Nidhi company registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

Is INC-20A required for a Nidhi company?

Yes, as a company with share capital, a Nidhi files it within 180 days of incorporation. Check the current requirement on the MCA portal.

What is the deadline for INC-20A?

180 days from the date of incorporation. That is 60 days after the 120 day window for NDH-4 closes.

Can I file INC-20A before NDH-4?

Nothing stops you from filing it earlier once the shares are paid up and the office is verified. Most founders finish NDH-4 first because its window is shorter.

What happens if INC-20A is filed late?

Expect penalties and possibly ROC notices. The amount depends on current rules, so ask your CA for the figure on the day you file.

More in this Nidhi series