Form INC-20A — Commencement of Business
Form INC-20A is the declaration a new company files to confirm that every subscriber has paid for their shares. It applies to every company with share capital incorporated on or after 2 November 2018, and it is due within 180 days of incorporation. Until it is filed, the company cannot commence business or borrow.
What it is
INC-20A is a one-time declaration of commencement of business. In it, a director confirms to the Registrar of Companies (ROC) that every subscriber to the memorandum has paid the value of the shares they agreed to take. The company’s bank statement showing that money is attached, and a practising professional certifies the form.
The requirement comes from Section 10A of the Companies Act, 2013, inserted by the Companies (Amendment) Act, 2019 with effect from 2 November 2018. Rule 23A of the Companies (Incorporation) Rules, 2014 prescribes the form, which is filed on the MCA V3 portal. Until it is filed, and the registered office has been verified under Section 12(2), the company may not commence any business or exercise any borrowing powers. No declaration, no business.
Who it applies to
You have just formed a private company or OPC
Any private company or One Person Company with share capital, incorporated on or after 2 November 2018. Just finished registering a private limited company? This is the next filing on your list.
You run a public, Section 8 or Nidhi company
Public companies and Section 8 companies with share capital file it too. A Nidhi company also attaches the Central Government’s approval of its Form NDH-4.
Skip it if there is no share capital
Section 10A covers only companies with share capital, so a company without share capital does not file it. Nor does a company incorporated before 2 November 2018.
Why it matters
Start trading and borrowing legally
Until the declaration is filed, Section 10A(1) bars the company from commencing business or borrowing. Trading before that is a default.
Stay on the register of companies
Section 248(1)(d) lets the ROC remove a company whose subscribers have not paid their subscription and whose declaration was not filed within 180 days of incorporation.
Show the capital really came in
The bank statement proves the share money reached the company. Banks and investors look for exactly that.
Documents required
To prove the share money arrived
- The company’s bank statement showing each subscriber’s payment
- Subscriber names and number of shares, as written in the MoA
- Certificate of incorporation, to fix the 180-day deadline
To verify the office, if still pending
- Registered title document, or a notarised rent agreement with a rent receipt not older than one month
- Utility bill (electricity, gas or telephone) not older than two months
- Owner’s authorisation (NOC) with proof of ownership
To sign the form and attach approvals
- A director’s valid digital signature certificate (DSC)
- Certification by a practising CA, CS or CMA
- Registration or approval from the sectoral regulator (RBI, SEBI and so on), if your objects need one
- Central Government approval of NDH-4, for a Nidhi company
INC-20A checklist
| Check | What the law asks | Where it comes from |
|---|---|---|
| Company type | Has share capital and was incorporated on or after 2 November 2018 | Section 10A(1) |
| Subscription money | Every subscriber has paid the value of the shares they agreed to take | Section 10A(1)(a) |
| Registered office | Verification already filed with the ROC, in SPICe+ or Form INC-22 | Section 10A(1)(b) and Section 12(2) |
| Regulator approval | Registration or approval attached where the objects need RBI, SEBI or another regulator | Rule 23A proviso |
| Nidhi approval | Central Government approval of NDH-4 filed along with INC-20A | Rule 3B(5), Nidhi Rules, 2014 |
| Signatures | Director’s DSC plus certification by a practising CA, CS or CMA | Rule 23A |
| Deadline | Within 180 days of the date of incorporation | Section 10A(1)(a) |
Here is the catch: the declaration speaks for every subscriber, not for the company as a whole. Say two founders each subscribe for 5,000 shares of ₹10 in the MoA. One transfers ₹50,000 from her own account; the other’s share is paid by his father’s firm. The bank statement then does not show the second subscriber paying, and that is exactly what the declaration confirms. So each subscriber should pay for their shares from their own account.
How it works
Move the share money into the company’s account
Each subscriber transfers the full amount for the shares written against their name in the MoA. Do this early. A Faridabad start-up can have its GST number and first purchase order ready while the founders’ share money still sits in their personal accounts, and it cannot trade until that money moves.
Check that the registered office is verified
If you gave the office address with full proofs in SPICe+, the office is already verified. If only a correspondence address was given, we file INC-22 first, within 30 days of incorporation.
Line up any regulator approval
If your objects need registration with a regulator such as RBI or SEBI, that registration or approval goes with the form. A Nidhi company attaches its NDH-4 approval, which is why NDH-4 comes first.
Sign and certify the form
We fill the form and attach the bank statement and any approvals. A director signs it with their DSC and a practising professional certifies it.
File on MCA V3 and start trading
We pay the fee, file the form and send you the SRN and challan. From then on, the company can trade and borrow. We also diarise your first annual ROC filings.
Timelines
Verify the registered office within 30 days
Section 12(2) requires the company to furnish verification of its registered office to the ROC within 30 days of incorporation.
File INC-20A within 180 days
The declaration is due within 180 days of the date of incorporation. A company incorporated on 15 May 2026 must file by 11 November 2026.
Start business within one year
Under Section 248(1)(a), the ROC can also act against a company that has failed to commence its business within one year of incorporation.
What happens if you miss the 180 days
You pay 2× to 12× the fee
Late AOC-4 and MGT-7 filings attract ₹100 a day. INC-20A is an event-based form, so its additional fee is a multiple of the normal fee: 2× up to 30 days late, 4× for 31–60 days, 6× for 61–90 days, 10× for 91–180 days and 12× beyond 180 days.
The ROC can levy a Section 10A(2) penalty
₹50,000 on the company. Every officer in default pays ₹1,000 for each day the default continues, up to ₹1 lakh. Under Section 446B, an OPC, small company or start-up pays at most half of these amounts.
The ROC can strike the company off
Picture a company formed for a contract that fell through: no share money paid, no business started. If no declaration is filed within 180 days and the ROC believes the company is not carrying on business, Section 10A(3) lets it start removal under Section 248. Notice goes to the company and all directors, with 30 days to reply.
Frequently asked questions
What is the due date for filing INC-20A?
INC-20A is due within 180 days of the date on the certificate of incorporation. For a company incorporated on 15 May 2026, the last day is 11 November 2026. Filing later costs an additional fee and exposes the company to the Section 10A(2) penalty and possible strike-off. File as soon as the subscription money is in the bank and the deadline never becomes a problem.
Which companies need to file INC-20A?
Every company with share capital incorporated on or after 2 November 2018 must file it. That covers private limited companies, One Person Companies, public companies, Section 8 companies with share capital and Nidhi companies. Companies without share capital do not file it, and neither do companies incorporated before 2 November 2018. Your certificate of incorporation and MoA answer the question in a minute.
Can a company start business before filing INC-20A?
No. Section 10A(1) bars a covered company from commencing any business or exercising any borrowing powers until the declaration is filed and its registered office has been verified with the ROC. Trading or borrowing before that is a default under Section 10A(2). The form can go in as soon as the subscription money reaches the company’s bank account, so in practice the wait is short.
What proof of subscription money is attached to INC-20A?
Attach the company’s bank statement showing the amount received from each subscriber. Section 10A(1)(a) needs a declaration that every subscriber to the memorandum has paid the value of the shares agreed to be taken, so each credit should match that person’s shares in the MoA. A bank transfer from each subscriber’s own account keeps the trail clean.
Who signs and certifies INC-20A?
A director signs the form with their digital signature certificate, and a Chartered Accountant, Company Secretary or Cost Accountant in practice certifies it, as Rule 23A of the Companies (Incorporation) Rules, 2014 requires. The professional checks the bank statement against the subscription details before certifying. Keep the director’s DSC valid and registered on the MCA V3 portal, and signing takes minutes.
What is the penalty for not filing INC-20A?
Under Section 10A(2), the company is liable to a penalty of ₹50,000, and every officer in default to ₹1,000 for each day the default continues, up to ₹1 lakh. For an OPC, small company, start-up or producer company, Section 446B limits the penalty to half of these amounts. This is separate from the additional filing fee. Filing within 180 days avoids both.
Can INC-20A be filed after 180 days?
Yes. The MCA V3 portal accepts the form after 180 days with an additional fee of 2× to 12× the normal fee, depending on the delay. Late filing does not cancel the Section 10A(2) penalty, and if the ROC believes the company is not carrying on business, it may already have started strike-off action. The sooner a late form goes in, the better your position.
How does a Nidhi company file INC-20A?
A Nidhi company files INC-20A along with the Central Government’s approval of its Form NDH-4, under Rule 3B(5) of the Nidhi Rules, 2014. NDH-4 is due within 120 days of incorporation, and the government must decide within 45 days, failing which the application is deemed approved. The company can commence business only after that approval. Plan NDH-4 early and both deadlines fit inside the 180 days.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The government fee for INC-20A depends on your authorised capital:
| Authorised capital | INC-20A normal fee |
|---|---|
| Below ₹1 lakh | ₹200 |
| ₹1 lakh to below ₹5 lakh | ₹300 |
| ₹5 lakh to below ₹25 lakh | ₹400 |
| ₹25 lakh to below ₹1 crore | ₹500 |
| ₹1 crore and above | ₹600 |
Filed after 180 days, this fee is multiplied 2× to 12× depending on the delay. So a company with ₹1 lakh authorised capital that files 45 days late pays 4 × ₹300, which is ₹1,200.
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Ready to begin?
Send us your certificate of incorporation and the company’s bank statement, and we will have your INC-20A certified and filed well before day 180.