Form INC-20A: the commencement of business declaration
Incorporation is not the finish line. A company with share capital must confirm to the Registrar, within 180 days, that its subscribers have paid for their shares, and until it does the law says it may not start business or borrow.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP, on · Published
Quick answer
Under section 10A of the Companies Act, a company incorporated with share capital on or after 2 November 2018 must file Form INC-20A within 180 days of incorporation, with a director’s declaration that every subscriber has paid for the shares they agreed to take. Missing it makes the company liable to a penalty of ₹50,000 and each officer in default to ₹1,000 a day, up to ₹1 lakh, and the Registrar may start striking the company off.
Want it done for you? See our private limited company registration service.
Registering in Delhi? See company registration in Delhi, with the Delhi stamp duty table.
Registering in a particular city? See company registration in Delhi, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Gurugram, Noida or Kolkata, each with the local stamp duty, ROC and state registrations.
Has the company taken a loan from a director or a bank? See DPT-3, the return of deposits and loans, due 30 June.
Who has to file
| Company | INC-20A? |
|---|---|
| Private or public company with share capital, incorporated on or after 2 November 2018 | Yes, within 180 days of incorporation |
| One Person Company with share capital | Yes |
| Section 8 company with share capital | Yes |
| Company without share capital, such as a section 8 company limited by guarantee | No |
| Company incorporated before 2 November 2018 | No; section 10A does not apply |
Section 10A also requires the company to have verified its registered office with the Registrar under section 12(2). Both conditions must be met before the company commences business or exercises borrowing powers.
What to file
- Receive the subscription money from every subscriber into the company’s bank account, matching the shares in the memorandum.
- Download the bank statement showing each subscriber’s payment; this is the main attachment.
- If the business needs registration with a sectoral regulator, such as the RBI for a non-banking finance company, attach that approval.
- File INC-20A on the MCA portal with a director’s DSC. The portal computes the fee.
The most common rejection is a bank statement that does not show the subscribers’ names, or payments that do not add up to the subscribed capital. Pay the subscription early: the 180 days run from the date on the certificate of incorporation.
If the 180 days pass
| Consequence | Under section 10A |
|---|---|
| Penalty on the company | ₹50,000 |
| Penalty on every officer in default | ₹1,000 for each day the default continues, up to ₹1 lakh |
| Strike-off | Where the declaration is not filed and the Registrar has reasonable cause to believe the company is not carrying on business, it may start removal of the name under Chapter XVIII |
The declaration can still be filed late with additional fees, but that does not remove the penalty, which the Registrar imposes by adjudication. A company that has started business or borrowed without filing is also in breach of the bar in section 10A(1). If you are near or past the deadline, file first and deal with the adjudication with a professional.
Frequently asked questions
What is the due date for INC-20A?
Within 180 days of the date of incorporation shown on the certificate of incorporation.
What is the penalty for not filing INC-20A?
₹50,000 on the company and ₹1,000 a day on each officer in default, up to ₹1 lakh, under section 10A(2). The Registrar may also start strike-off proceedings.
Is INC-20A required for a company without share capital?
No. Section 10A applies only to companies having a share capital, so a company limited by guarantee without share capital does not file it.
Can INC-20A be filed after 180 days?
Yes, with additional fees, but late filing does not stop the penalty under section 10A(2), which is imposed separately by the Registrar.
What documents are attached to INC-20A?
Proof that the subscribers paid for their shares, usually the company’s bank statement, and a sectoral regulator’s approval where the business needs one.
Event-based ROC Filing from ₹1,999, by a CA.
One event form such as MGT-14, ADT-1 or INC-20A, drafted and filed with the MCA fee at actuals.
Professional fee shown; government charges at actuals, quoted in writing before you pay. GST at 18% extra.
See what is included and the full priceJust incorporated?
We file INC-20A and the first-year filings, ADT-1 for the first auditor and the commencement checklist, as event-based ROC filings from ₹1,999.
Keep reading.
PAN for a company: how it is allotted, applied for and downloaded
Companies get PAN with incorporation through SPICe+; older or foreign companies apply in Form 94 or 96. The card, the fees, the C in the PAN and how to update it.
Read guide→GuideForm ADT-1: filing the auditor’s appointment
ADT-1 is filed within 15 days of the meeting that appoints the auditor, once for each five-year term: who files it, the first auditor question, attachments and fees.
Read guide→GuideForm DIR-12: filing director appointments, resignations and changes
DIR-12 tells the Registrar about every director and KMP change within 30 days: the events it covers, what to attach, the fee by capital and what happens if it is late.
Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them: verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Facts on this page are checked against these sources; the date of the last check is shown at the top of the page. It is general guidance, not advice on your specific facts. How we write and check our guides.