INC-20A Filing
(Commencement of Business)
Incorporating a company is just the first step. You must formally declare that subscription money has been received and you are ready to commence business within 180 days.
What is Form INC-20A?
Form INC-20A serves as a formal declaration that the company has received the subscription money for its shares. It is a mandatory compliance requirement introduced under Section 10A of the Companies Act, 2013, to ensure shell companies do not operate.
- Who must file: Any Private, Public, or One Person Company incorporated on or after Nov 2, 2018.
- Deadline: Exactly within 180 days from the date of incorporation.
- Pre-requisite: The company must have an active bank account where share capital has been deposited.
The Filing Process
Open a Bank Account
Once incorporated, open a current account in the company’s name and have subscribers deposit the promised capital.
Collect Proof
Obtain the bank statement clearly reflecting the credited share capital amount.
Prepare the Declaration
A director signs the declaration. External and internal photographs of the registered office with the directors must be attached.
Professional Certification & Filing
The form must be certified by a practicing CA, CS, or CMA before uploading to the MCA portal.
Consequences of Not Filing
- The Company: Flat penalty of ₹50,000.
- The Directors: ₹1,000 per day up to a maximum of ₹1,00,000.
- Strike Off: MCA may strike off the company entirely from the registrar.
- Operations Blocked: Cannot legally borrow money or issue shares.
Government Fees
| Share Capital | Filing Fee (INR) |
|---|---|
| Up to ₹1,00,000 | ₹200 |
| ₹1,00,001 to ₹4,99,999 | ₹300 |
| ₹5,00,000 to ₹24,99,999 | ₹400 |
| ₹25,00,000 to ₹99,99,999 | ₹500 |
| ₹1 Crore or more | ₹600 |
Quick Docket
- Mandatory Form INC-20A
- Due Date 180 days post-incorp.
- Bank Acct Required
Warning
Non-compliance results in ₹50,000 flat penalty and potential strike-off.