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Commencement of business declaration, INC-20A

  • A new company cannot start business or borrow until a director declares that all subscribers have paid for their shares.
  • Deadline: Within 180 days of the date of incorporation
  • Done in 2 working days after bank statement and office photos
  • Prepared by your Savvy, checked by a CA
  1. Bank statement showing share money
  2. Have all subscribers paid in full into the company account?
  3. Confirm bank account is open and each subscriber's share money is credited
  4. SRN and challan for INC-20A
The law and the stepsPay and start · ₹1,499One time, + 18% GST

Answer in brief

A new company cannot start business or borrow until a director declares that all subscribers have paid for their shares. We certify and file this declaration (INC-20A) with the bank proof within 180 days.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Companies Act 2013, Sec 10A(1)

    Company with share capital cannot commence business or borrow until a director files a declaration within 180 days that every subscriber has paid for the shares, and the registered office is verifiedSource

  • Companies Act 2013, Sec 10A(2)

    Default: company penalty ₹50,000; each officer in default ₹1,000 per day, up to ₹1,00,000Source

  • Companies Act 2013, Sec 10A(3) and Sec 248(1)(d)

    If no declaration is filed in 180 days and the Registrar believes no business is carried on, the company's name may be struck offSource

  • Companies (Incorporation) Rules 2014, Rule 23A (G.S.R. 1219(E), 18 Dec 2018)

    Declaration in Form INC-20A, verified by a practising CS, CA or cost accountant; sectoral regulator approval attached where neededSource

  • Companies (Registration Offices and Fees) Amendment Rules 2022, G.S.R. 12(E) (effective 1 July 2022)

    Additional fee for late filing as multiples of the normal feeSource

  • Companies Act 2013, Sec 446B

    OPC, small company, start-up and producer company penalties are halved, capped at ₹2,00,000 company and ₹1,00,000 per officerSource

  • Government fee

    Filing fee by nominal share capital under the Companies (Registration Offices and Fees) Rules 2014: below ₹1,00,000: ₹200; ₹1 lakh to below ₹5 lakh: ₹300; ₹5 lakh to below ₹25 lakh: ₹400; ₹25 lakh to below ₹1 crore: ₹500; ₹1 crore or more: ₹600 (https://ca2013.com/rule-12-companies-registration-offices-and-fees-rules-2014/, https://taxguru.in/company-law/form-inc-20a-commencement-business.html).

  • Late fee or penalty

    Additional fee on the normal fee under G.S.R. 12(E), effective 1 July 2022: up to 30 days 2 times; 30 to 60 days 4 times; 60 to 90 days 6 times; 90 to 180 days 10 times; beyond 180 days 12 times (https://ca2013.com/wp-content/uploads/2022/01/Companies-Fees-Rules-2022.pdf). Separately, Sec 10A(2) penalty of ₹50,000 on the company and ₹1,000 per day per officer up to ₹1,00,000, halved for OPC, small company or start-up under Sec 446B (https://www.aubsp.com/section-10a-commencement-of-business/, https://navimumbai.icai.org/detail/30192.aspx).

On the portal

  1. Login to MCA V3 with the business user ID; associate director's and professional's DSC
  2. MCA Services > Company e-Filing > INC-20A
  3. Enter CIN; check prefilled company details and subscribed capital
  4. Upload bank statement, office photographs and any regulator approval
  5. Submit, affix director and professional DSCs, pay fee
  6. Download SRN challan

What trips people up

  • Late filing triggers ROC adjudication and strike-off notice (STK-1)

    File INC-20A with additional fee and reply to the notice; in one ROC Gujarat order (June 2023) STK-1 was dropped and no penalty imposedSource

  • Office photo missing a director or KMP

    Retake photos showing outside and inside with a director or KMPSource

  • Regulated objects (for example NBFC) filed without approval

    Get the RBI or other regulator approval first and attach itSource

  • Penalty order felt excessive

    Appeal to the Regional Director in e-form ADJ within 60 daysSource

People ask

Does a company without share capital file INC-20A?

No. It applies to companies with share capital.Source

Can we still file after 180 days?

Yes, with an additional fee of up to 12 times the normal fee. Penalty under Sec 10A(2) can still be levied.Source

What if we never file it?

The Registrar can start striking off the company if it believes no business is being done.Source

Who certifies the form?

A practising CA, CS or cost accountant.Source

Is the penalty lower for small companies?

Yes. Half, capped at ₹2 lakh for the company and ₹1 lakh per officer.Source

IDFD

How we solve it: 4 steps

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Step 1 of 4 · What we need from you

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  • Bank statement showing share money
  • Registered office photos with director
  • Certificate of incorporation and MoA
  • Director's DSC
  • Sectoral regulator approvalOptional

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