Form INC-20A: Declaration for Commencement of Business
Once the Private Limited Company is incorporated, the Registrar of Companies (ROC) issues the Certificate of Incorporation. This means your business is registered and recognized as a legal entity.
However, as a business owner, your work does not end there. Although the certificate confirms that the company has been legally created, it does not give immediate permission to start business activities.
Before a newly formed company can issue invoices, enter into contracts, or carry out transactions, it must complete one more mandatory requirement by filing Form INC-20A (Declaration for Commencement of Business).
Apart from INC-20A, there are several compliance requirements you need to take care of after company registration. Here’s the list of every compliance you need to file: Compliances for Private Limited Company Post Incorporation
This blog explains what Form INC-20A is, who needs to file it, why it is required, deadlines to remember, penalties for missing it, and the complete filing process.
What is the Form INC-20A (Declaration of Commencement of Business)?
A company in India becomes officially eligible to start business activities only after receiving the Declaration of Commencement of Business from the ROC. The approved form itself serves as permission to commence business.
Without filing Form INC-20A, a company is not allowed to:
- Start any commercial activity
- Borrow money
- Issue invoices
- Carry out business operations
- Use capital for business
So although incorporation gives the company legal existence, business cannot begin until the declaration is filed.
Why Form INC-20A Was Introduced
Form INC-20A was introduced under Rule 10A read with Rule 23A of the Companies (Incorporation) Rules, 2014, through the Companies (Amendment) Ordinance, 2018. It became applicable for companies incorporated on or after 2 November 2018.
Before this rule, several companies were getting incorporated but never starting business. This led to complications in annual compliance for a company, along with taxation and fraud tracking. Form INC-20A ensures that:
- The subscribers who signed the Memorandum have paid their share capital
- The company has a genuine intention to start business
- Regulatory bodies can confirm the financial credibility of new companies
In short, Form INC-20A acts as proof that the company is not only registered but also ready to operate.
Keep your business active in the eyes of ROC by filing all the required compliances. Here’s the ROC compliance calendar for a company: ROC Compliance for Private Limited Company: Meaning and Requirements
Who Needs to File Form INC-20A and What It Means
Form INC-20A is a mandatory declaration for every company that has share capital and is incorporated on or after 2 November 2018 under the Companies Act 2013. It must be filed within 180 days of incorporation.
By filing this form, a director confirms two things:
- All subscribers have paid the value of the shares they agreed to take.
- The company is ready to begin business activities.
The form is submitted online to the ROC with a digital signature and must be certified by one of the following professionals:
- Practicing Chartered Accountant (CA)
- Practicing Company Secretary (CS)
- Practicing Cost Accountant (CMA)
If the company carries on activities that require approval from a regulator, the relevant approval must be attached.
Examples of regulators include:
- RBI for financial and banking activities
- SEBI for securities and investment-related activities
Note: Registered companies without share capital are exempt from the Form INC-20A
Attachments Required for Form INC-20A
The following documents must be attached when filing the form:
- Bank statement of the company showing the subscription amount received from shareholders
- Photograph of the registered office (as required by your jurisdiction’s ROC):
- Showing the premises
- And at least one director or Key Managerial Personnel (KMP) present
These attachments act as proof that the business is real, functional, and financially supported by its subscribers.
How to File Form INC-20A
Many founders think filing is complex, but the process is actually straightforward when handled carefully.
- Open a current bank account in the company’s name
- Deposit the share capital received from all subscribers into that account
- Collect the bank statement and registered office photographs
- Log in to the MCA V3 portal (mca.gov.in)
- Go to MCA Services → Company E-filing → INC-20A
- Fill in the company details and upload documents
- Get the form verified by a CA, CS or CMA
- Apply digital signatures, pay the fees and submit
Once the ROC approves the form, the business becomes fully operational from a legal point of view.
Learn what documents you need in order to open a bank account for your company: Documents required to open a bank account for company
Fees for Filing Form INC-20A
The filing fee depends on the nominal share capital of the company.
| Nominal Share Capital | Filing 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 more | ₹600 |
Additional fees apply if filing is delayed:
| Delay Period | Additional Fees |
| Up to 30 days | 2 times of normal fee |
| 30–60 days | 4 times of normal fee |
| 60–90 days | 6 times of normal fee |
| 90–180 days | 10 times of normal fee |
| More than 180 days | 12 times of normal fee |
Founders should try to file Form INC-20A at the earliest to avoid any penalty or business disruption.
Penalty for Not Filing Form INC-20A
Failure to file Form INC-20A has serious consequences for both the company and its directors.
Penalty on the company
- ₹50,000
Penalty on each director
- ₹1,000 per day of continuing default
- Maximum ₹1,00,000
Beyond monetary penalties, the ROC has the authority to:
- Remove the company’s name from the register if 180 days have passed and the filing is still not completed
Don’t let your company strike off and maintain an Active status of your company with our blog: How To Maintain Active Status Of Your Private Company Through Compliance
- Treat the company as non-operational
Once struck off, the company must undergo the legal restoration process to restart operations. It is essential to know how to restore a struck-off company. For a young business, losing its legal status so early is a major setback, so compliance should not be delayed.
Want to know what other issues you might have to deal with for the late filing of INC-20A? Read the full blog here: Form INC-20A: Consequences of delay in filing
Why Filing Form INC-20A Matters for Every Founder
Founders focus on product, customers, branding, and scaling. However, compliance forms, when ignored, can stop the journey before it starts. Filing Form INC-20A ensures:
- The business can lawfully operate in India
- Funds can be used for genuine business expenses
- Contracts, invoices, and business transactions become legally valid
- Banking and lending processes become smoother
- The company stays safe from penalties and removal by the ROC
Every serious founder wants a company that is strong on discipline and credibility. Completing INC-20A helps build that foundation.
Looking for Professional Help?
Start business operations without compliance hurdles to submit Form INC-20A on time with LegalWiz:
- Quick and accurate filing
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Conclusion
Form INC-20A is not just a procedural step. It is the first compliance milestone after incorporation and proof that the business is ready to operate. Every company incorporated on or after 2 November 2018 with share capital must file this form within 180 days to avoid penalties and legal restrictions.
The form is available on the MCA V3 portal and can be filed once the company receives subscription money from its shareholders and opens its bank account.
A compliant beginning sets the tone for a reliable and successful business journey.
Frequently Asked Questions
What is Form INC-20A?
It is a declaration filed by a director to confirm that all subscribers have paid their share capital and the company is ready to begin business activities.
Who must file Form INC-20A?
All companies with share capital that were formed on or after November 2, 2018, under the Companies Act 2013.
What is the deadline for filing the form?
You have 180 days from the date of formation to file Form INC-20A.
Can a company start business without filing Form INC-20A?
Not at all. The business can’t send out bills, borrow money, or do any other business-related tasks until the form is turned in and accepted.
What happens if a company fails to file the form?
The company could be fined money, directors are fined for every day the company is late, and the ROC could take the company off the record.
What are the attachments required for filing?
Share capital receipts from the bank and pictures of the listed office, both inside and out, with at least one director or KMP in the picture.
Where can the form be filed?
The Form INC-20A is sent through the Ministry of Corporate Affairs (MCA) site (V3).
Sapna Mane
Sapna Mane is a skilled content writer at LegalWiz.in with years of cross-industry experience and a flair for turning legal, tax, and compliance chaos into clear, scroll-stopping content. She makes sense of India’s ever-changing rules—so you don’t have to Google everything twice.
