Form INC-20A in India: Why It’s Critical and How to File It Step by Step
If you have recently incorporated a company in India, **Form INC‑20A** is one of the most important early compliances you cannot afford to ignore.
Many founders focus on incorporation, name approval and bank account, but **miss INC‑20A or file it late**. The result can be:
- Heavy additional fees and penalties
- Inability to start business legally
- Even **strike‑off of the company** in serious cases
In this article, we’ll cover:
- What Form INC‑20A is
- Who must file it and by when
- Consequences of non‑filing
- Step‑by‑step process to file INC‑20A
- Practical FAQs and tips
What Is Form INC‑20A?
**Form INC‑20A** is the **“Declaration for Commencement of Business”** under Section 10A of the Companies Act, 2013.
It is a form filed by a newly incorporated company to declare that:
1. The subscribers have paid the value of shares agreed to be taken by them, and
2. The company has **verified its registered office** by filing **INC‑22** (if applicable).
Only after filing INC‑20A (and it being approved by ROC) can the company **legally commence business or exercise borrowing powers**.
Who Has to File INC‑20A and By When?
Companies Required to File
INC‑20A is applicable to:
- All companies **incorporated on or after 2nd November 2018** having share capital.
It is **not applicable** to:
- Companies incorporated before 2nd November 2018
- Companies without share capital (rare in practice)
Due Date for Filing
The form must be filed **within 180 days from the date of incorporation** of the company.
Example:
- Date of incorporation: 1st April 2026
- Last date to file INC‑20A without additional fees: 27th September 2026
It is always safer to file **as soon as** share subscription money is received and bank account is opened.
Why Is Form INC‑20A So Important?
1. **Legal Permission to Start Business**
Until INC‑20A is filed and approved, the company is **not legally allowed to commence business** or **borrow money**.
2. **ROC Can Remove the Company’s Name**
If INC‑20A is not filed within the prescribed time and the Registrar has reasonable cause to believe that the company is not carrying on any business, ROC may **initiate action for removing the company’s name from the register**.
3. **Penalty on the Company and Officers**
Section 10A provides for penalties if the declaration is not filed within time.
4. **Bank and Investors Look at It**
Banks, investors and other stakeholders often check whether a company has properly filed INC‑20A before dealing with it.
5. **Foundation for Clean Compliance History**
Early non‑compliance sends a wrong message and creates cost and risk in future due diligence, funding rounds or M&A.
Consequences of Non‑Filing / Late Filing
Additional Fees
MCA charges **additional fees** for delayed filing of INC‑20A as per the current fee schedule (multiple of normal fees depending on delay).
Penalty Under Section 10A
As per Section 10A:
- The company may be liable to a **penalty** for non‑compliance.
- Every officer in default may also be liable to penalty.
(Exact amounts can change; always check latest MCA updates.)
Action by ROC – Strike‑Off Risk
If the declaration is not filed and it appears that the company is not carrying on any business or operations, the **Registrar may initiate action for removal of the name** of the company from the register.
Preconditions Before Filing INC‑20A
Before filing the form, ensure:
1. **Bank Account Opened**
Current account in the company’s name.
2. **Subscription Money Received**
Initial share capital is received in the company’s bank account from each subscriber.
3. **Registered Office Verified**
If address at incorporation was temporary, ensure **INC‑22** is filed and approved.
4. **No Major Non‑Compliance**
Basic incorporation‑related filings and KYC (if any) should be in order.
Step‑by‑Step: How to File Form INC‑20A
Step 1: Collect Bank Statement / Proof
- Bank statement / passbook showing **receipt of share capital** from each subscriber.
- Or a certificate from the bank.
Step 2: Board Resolution
- Board Meeting / resolution to:
- Note receipt of subscription money;
- Authorise a Director / CS / professional to sign and file INC‑20A.
Step 3: Prepare Attachments
- Proof of subscription money (bank statement / certificate)
- Board Resolution authorising filing
- Other documents as required
Step 4: Fill INC‑20A
On MCA portal:
- Download latest **Form INC‑20A**.
- Fill CIN, name, address, incorporation date, capital details, subscriber details, SRN of INC‑22, etc.
Step 5: Professional Certification
- Form is certified by a **practicing CS/CA/CMA**.
Step 6: Upload and Pay Fees
- Upload INC‑20A on MCA portal.
- Pay normal + additional fee (if any).
Step 7: ROC Approval
- ROC processes and, if in order, records the declaration.
- Status can be checked from form status / master data.
Practical FAQs
**1. Can I start operations before filing INC‑20A?**
Technically **no**. Company should file INC‑20A before commencing business or borrowing.
**2. What if full subscription money is not received?**
Ideally, full face value of subscribed shares should be credited before filing. Otherwise, discuss with your professional.
**3. Is INC‑20A required if company is not going to do business now?**
Yes, if incorporated with share capital after 2 Nov 2018. For long‑term inactivity you can later consider **dormant status**.
**4. Can I fix old non‑filing?**
If company not struck off yet, you can still file INC‑20A with additional fees. If already struck off, restoration process is separate.
Key Takeaways
- **INC‑20A is mandatory** for most new companies with share capital.
- Due date: **180 days from incorporation**.
- Non‑filing leads to additional fees, penalties and strike‑off risk.
- Make sure bank account is opened, subscription money is received and registered office is verified before filing.
- Timely INC‑20A is a small but critical step to keep your compliance history clean.
**Disclaimer:** This article is generated with the help of AI (SushilClaw and an AI agent) based on general provisions of Indian company law and common compliance practice. It is for informational purposes only and is **not** a substitute for professional advice. Please consult your Company Secretary, Chartered Accountant or legal advisor before taking any decision or filing any forms.
