What Is Form INC-20A?
Companies with share capital must file a declaration of commencement of business in Form INC-20A within 180 days of incorporation. It confirms that every subscriber has paid for the shares they agreed to take.
Until the declaration is filed, the company should not start business or borrow money. Missing the deadline attracts penalties on the company and its officers, and the ROC may start action to remove the company from the register.
INC-20A filed on time after incorporation
- Subscription money proof checked
- Declaration prepared and filed
- Late filing handled if the deadline has passed
Who Must File INC-20A?
- Private and public companies with share capital
- Companies incorporated in the last 180 days
- Companies that missed the INC-20A deadline
- Newly incorporated startups
Benefits of Filing on Time
Start business legally
Commence operations and borrow without restriction.
Avoid penalties
Prevent penalties on the company and directors.
Avoid strike off
Reduce the risk of ROC action to remove the company.
Investor-ready
A clean compliance record from the start.
Documents Required
- Bank statement showing receipt of subscription money
- Certificate of Incorporation
- Details of subscribers and shares
- Registered office verification details, if applicable
- Digital signature of a director
Filing Process
Deposit subscription money
Subscribers pay for their shares into the company’s bank account.
Collect proof
Bank statement and subscriber details compiled.
File INC-20A
The declaration is filed with the ROC.
Confirmation
Filing acknowledged; business can commence.
Common Mistakes to Avoid
INC-20A is a common first-year miss for new companies.
- Missing the 180-day deadline – Penalties apply to the company and officers.
- No bank proof of subscription – Subscription money must reach the company’s bank account.
- Starting business before filing – Operations and borrowing should wait for the declaration.
- Registered office not verified – The ROC may verify the registered office.
- Wrong subscriber details – Details must match the incorporation documents.
After Filing INC-20A
Commence business
Start operations and enter into contracts.
Appoint the auditor
Ensure the first auditor is appointed.
Maintain registers
Set up statutory registers.
Plan annual filings
Prepare for the first AGM and annual filings.
Why Choose Vaidam Consultancy for Form INC-20A (Commencement of Business)
Built into your first-year plan
We remind you right after incorporation.
Clear quote upfront
You receive our fee and any government charges before we begin.
One point of contact
A single consultant handles your documents, filing and follow-up.
Quick turnaround
Documents are reviewed promptly so you can meet your deadline.
Frequently Asked Questions
Within 180 days from the date of incorporation.
The company can be fined ₹50,000, and every officer in default can be fined ₹1,000 per day, up to ₹1 lakh.
Yes, with additional fees, but the penalty exposure remains. It should be filed as soon as possible.
No. INC-20A applies only to companies with share capital.
No. It applies to companies having share capital.
Yes. If the declaration isn’t filed and the company appears not to be carrying on business, the ROC may initiate removal.