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Form INC-20A, also known as the "Declaration for Commencement of Business," is a mandatory compliance requirement for companies incorporated in India on or after November 2, 2018, that have share capital. It is a formal declaration filed with the Registrar of Companies (RoC) confirming that the company is ready to commence business operations.
This declaration must be submitted within 180 days from the date of incorporation. Without filing Form INC-20A, a company cannot legally start its business activities or exercise borrowing powers such as taking loans or issuing debentures.
Acts as official declaration that company is ready to start operations.
Verifies subscribers have paid full value for their shares.
Prevents creation of paper companies without genuine business intent.
Allows company to take loans, issue debentures after filing.
Fulfills statutory requirement under Companies Act, 2013.
Builds credibility with investors, creditors, and stakeholders.
The Date of Incorporation mentioned on your Certificate of Incorporation is crucial because:
Purpose: Shows receipt of full share capital from subscribers
Purpose: Formal authorization to file INC-20A
Visit mca.gov.in and log in with registered credentials.
Navigate to e-Filing section and download latest version.
Enter CIN, date of incorporation, director details, and declarations.
Upload bank statement, board resolution, and other supporting documents.
Click "Check Form" and "Pre-fill" to verify all information.
Sign with director's DSC and practicing professional's DSC.
Upload form, make payment based on share capital, get SRN.
Get payment challan and track status using SRN.
Form INC-20A is often processed under STP mode - approved automatically if all data is correct, without manual intervention.
| Nominal Share Capital | Fees (₹) |
|---|---|
| Less than ₹1,00,000 | 200 |
| ₹1,00,000 to ₹4,99,999 | 300 |
| ₹5,00,000 to ₹24,99,999 | 400 |
| ₹25,00,000 to ₹99,99,999 | 500 |
| ₹1,00,00,000 or above | 600 |
If filed after 180 days, additional fees apply based on delay duration. The longer the delay, the higher the penalty.
Failure to file Form INC-20A within 180 days can lead to severe penalties and operational restrictions.
If RoC believes company is not carrying on business, it may initiate strike-off proceedings:
Can legally start business operations
Can take loans, issue debentures
Avoids penalties and strike-off risk
Builds trust with stakeholders
Demonstrates regulatory compliance
Proves genuine business intent
Until Form INC-20A is filed and approved, the company cannot legally commence any business activities. This includes:
Section 10A of Companies Act, 2013 specifically prohibits exercising borrowing powers until INC-20A is filed:
Contracts entered into before filing may be legally challenged
Lenders acting in good faith may still be protected under Section 180(5)
While not explicitly mandated by law, a Board Resolution is crucial for Form INC-20A filing:
While templates are available, it's advisable to get the Board Resolution drafted by a practicing Company Secretary or Chartered Accountant to ensure compliance with all legal requirements.
Not optional - required by Section 10A of Companies Act, 2013. Non-compliance attracts heavy penalties and potential company dissolution.
Serves as official gateway to start operations. Without it, company remains in "incorporated but not operational" status.
Key tool to combat shell companies and money laundering by ensuring genuine business intent and financial backing.
Builds trust with investors, banks, suppliers, and customers by demonstrating regulatory compliance.
180 days may seem long, but compliance preparation takes time. Start early to avoid last-minute rush and potential penalties.
Connect with Compliance 360 and let our experts handle the legal hassle while you grow your business.
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Our experienced professionals guide you through the complete INC-20A filing process, ensuring correct interpretation of MCA rules and accurate compliance.
We assist in preparing and verifying essential documents such as bank statements and board resolutions to meet MCA standards without errors.
Every detail is carefully reviewed to avoid rejection, delays, or non-compliance issues while filing Form INC-20A.
We handle the complete online filing through the MCA portal, ensuring smooth submission and adherence to digital procedures.
By managing legal formalities and paperwork, we help you save valuable time and eliminate the stress of complex compliance.
Timely filing within 180 days of incorporation helps prevent penalties, heavy fines, and possible strike-off actions by RoC.
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