Form INC-20A: Declaration for Commencement of Business

Who must file INC-20A?

Section 10A applies to every company having share capital that was incorporated on or after 2 November 2018. That covers private limited companies, one person companies, public companies and Section 8 companies with share capital. It does not apply to companies incorporated before that date, companies limited by guarantee without share capital, or LLPs.

Until INC-20A is filed, Section 10A says the company shall not commence any business or exercise any borrowing powers. Banks, lenders and larger customers increasingly check its status on the MCA master data before onboarding a new company. The declaration is a one-time filing. Once it is approved, there is nothing further to file under Section 10A, though the company's annual filings begin from its first financial year.

Fees and late fee

The normal fee depends on nominal share capital under the Companies (Registration Offices and Fees) Rules, 2014. If you file after 180 days, an additional fee applies as a multiple of the normal fee. This is separate from any penalty the Registrar may impose.

Attachments and certification

The key attachment is proof that each subscriber has paid the subscription money, normally a bank statement of the company's account showing the receipts. Where the company needs registration from a sector regulator such as RBI or SEBI, that registration must also be attached.

The form is signed by a director with a DSC and certified by a practising CA, CS or cost accountant, who confirms the details from the records. If the registered office was not verified at incorporation, INC-22 should be filed first.

• Bank statement showing subscription money received from each subscriber
• Regulator's registration or approval, where applicable
• Board resolution authorising the signatory
• Registered office details, including geographic coordinates captured in the V3 form

Penalties for not filing

Under Section 10A(2), a default attracts a penalty of ₹50,000 on the company. Every officer in default is liable to ₹1,000 for each day of default, up to ₹1 lakh. Registrars do issue adjudication orders for late INC-20A filings.

Section 10A(3) adds a further risk. If the declaration is not filed within 180 days and the Registrar has reasonable cause to believe the company is not carrying on business, it may start proceedings under Section 248 to remove the company's name from the register.

Common mistakes

The most frequent problem is simply forgetting the deadline, because nothing reminds new founders after incorporation. Other errors include filing before the subscription money reaches the company's own bank account, showing amounts that differ from the e-MoA subscription, or attaching a personal account statement. Refogo's partner professionals can file INC-20A for a fixed fee.

Step by step

1. 1Collect subscription money

   Ensure each subscriber pays for the shares into the company's bank account.

2. 2Get the bank statement

   Download a statement showing each subscriber's payment.

3. 3Fill INC-20A on V3

   Enter the CIN so company details pre-fill, then add payment details.

4. 4Attach documents

   Upload the bank statement and any regulator approval.

5. 5Sign and certify

   A director signs with DSC and a practising professional certifies.

6. 6Pay the fee

   Pay the normal fee, plus any additional fee if late.