Form INC-20A: Declaration of Commencement of Business U/s-10A (Companies Act, 2013)

Important Keywords: Form INC-20A, INC-20A filing, Declaration of Commencement of Business, Section 10A Companies Act 2013, Commencement of business certificate India, INC-20A due date, INC-20A penalty, Filing INC-20A MCA portal, Borrowing powers before INC-20A.

Words: 3,441, Read time: 18 minutes.

Last Updated: February 2026 (As per latest MCA amendments)

Overview

“Incorporation creates a company, but Form INC-20A gives it the right to operate.”

Form INC-20A is the legal green signal for a newly incorporated company to start its business. After a company is registered, the directors must file this form within 180 days. Through this form, they confirm that the money for the shares has already been received by the company.

Form INC-20A is the declaration of commencement of business that every company with share capital incorporated on or after 2nd November 2018 must file within 180 days of incorporation to confirm receipt of share subscription money before commencing business under Section 10A of the Companies Act, 2013.

The form also needs to be checked and certified by a professional such as a CA, CS, or CMA. If this form is not filed, the company cannot legally start any business activity.

This rule applies to all companies incorporated in India with share capital on or after 2nd November 2018. It does not apply to foreign companies registered under Chapter XXII of the Companies Act, 2013.

Form INC-20A Compliance Snapshot

Particulars	Details
Section	10A(1)
Penalty	10A(2)
Strike-off	Section 248 possible
Applicable Law	Section 10A, Companies Act, 2013
Companies Required	Companies with share capital (post 2‑Nov‑2018)
Due Date	Within 180 days of incorporation
Portal	MCA21 V3
Professional Certification	CA / CS / Cost Accountant
Consequences of Non‑filing	Penalty + possible ROC action

What is Form INC-20A (Declaration of Commencement of Business)

Form INC-20A, also called the Declaration for Commencement of Business, is an online form that every newly incorporated company with share capital must file. It is filed by the directors of the company to confirm that the company has received the subscription money from its shareholders.

This form is mandatory and must be submitted within 180 days from the date of incorporation. Filing INC‑20A is important because a company cannot legally start its business or raise loans without submitting this declaration to the Registrar of Companies (ROC).

The form must also be verified by a professional, such as a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA), to ensure that all information is correct. This requirement applies to all companies incorporated on or after 2nd November 2018.

As per Section 10A(1) of the Companies Act, 2013, a company having share capital shall not commence any business or exercise borrowing powers unless a declaration is filed with the Registrar.

Legal provision under Companies Act, 2013 (Section 10A)

This is one of the main reasons why Section 10A and Form INC-20A were introduced—to confirm that a company is real, active, and serious about doing business.
Section 10A of the Companies Act, 2013 ensures that companies are genuine, funded, and ready to start business. Under this section, a company with share capital cannot commence operations or exercise borrowing powers unless it files Form INC-20A with the ROC. It was introduced to prevent misuse of company incorporation, such as shell companies being used for money laundering, by requiring proof of share subscription and readiness to operate before business begins.

Applicability of Form INC-20A

This form applies to the following companies:

1. Private limited company
2. One person company
3. public limited company

and also Any company that has share capital and was started on or after 2nd November 2018 must file a declaration called eForm INC-20A before starting business.

Companies exempt from filing Form INC-20A

Only companies with share capital incorporated on or after 2nd November 2018 need to file INC-20A. Companies without share capital are exempt as per Section 10A. here are the details:

Type of Company	Share Capital	INC-20A Filing Requirement	Notes
Private or Public Company	Has share capital	Must file within 180 days of incorporation	Confirm that all subscribers have paid for their shares
One Person Company (OPC)	Has share capital	Must file	Same requirement as other companies with share capital
Section 8 Company (Non-profit)	No share capital	Exempt	No shares, so no need to confirm payment
Private Company Limited by Guarantee	No share capital	Exempt	Members guarantee an amount, but no shares to pay for
OPC without share capital	No share capital	Exempt	No shares, so filing is not required

Time limit for filing Form INC-20A

Requirement	Time Limit
File Form INC-20A	Within 180 days of incorporation (for companies with share capital incorporated on/after 2‑Nov‑2018)
Filing portal	MCA21 V3

Purpose of filing Form INC‑20A

The main purpose of this form is to confirm that all shareholders have paid for the shares they agreed to take. Filing it also allows the company to officially start its business and stay on the right side of the law.

Details required to be filled in Form INC‑20A

During filing this form you need to fill below mention details in the form:

• Company details - Keep the CIN, company name, and date of incorporation.
• Share capital details - Confirm the total subscribed share capital.
• Payment received - Make sure all subscribers have deposited their share money in the company’s bank account.
• Bank proof - Keep the bank statement or receipt showing the share capital received.
• Professional certification - Get the form certified by a practicing CA, CS, or Cost Accountant.
• Authorized signature & filing - A director (or authorized person) must sign the form, and it should be filed on the MCA portal within 180 days. It also needs a digital signature from the director and certification from a practicing CA, CS, or Cost Accountant.

Attachments required with Form INC-20A

As per Section 10A and MCA requirements, you must attach proof that the company has received the share capital from all subscribers. This proof is usually a bank statement, transaction receipt, or passbook entry showing that the share money has been deposited. The bank account should be opened in the name of the company, not in the name of any director or shareholder. The document must clearly show the amount received, the date of deposit, and that the payment matches the share amount mentioned in the Memorandum of Association.

Step by step process to file Form INC-20A.

you need to follow the below steps:

Step	Action
1	Log in to MCA portal
2	Go to MCA Services → E‑Filing → Company Forms
3	Open Form INC-20A
4	Fill company and share capital details
5	Save / Submit web form
6	Generate SRN
7	Affix DSC and upload PDF
8	Pay fees and complete filing

Important Notes:

The DSC-signed PDF must be uploaded within 15 days of SRN generation.

Payment must be completed within 7 days of upload or by the due date of filing plus 2 days (whichever is earlier), otherwise, the SRN will be canceled.

Need help related to filing Form INC-20A: Drop your queries at Finodha.in

Government fees for filing Form INC-20A

Fee structure for company with share capital:

Sr. No.	Nominal Share Capital	Fees applicable
1	If share capital less than ₹ 1,00,000	₹ 200
2	1,00,000 or above but not more than 4,99,999/-	₹300
3	₹5,00,0000 or above more than 24,99,999/-	₹400
4	25,00,000 or above but not more than 99,99,999/-	₹500
5	1 crore or more	₹600

Additional fees in case of delay in filing of form

Sr. No.	Delay period	Additional Fees
1	Up to 30 Days	2 times of normal fees
2	30-60 days	4 times of normal fees
3	60-90 days	6 times of normal fees
4	90-180 days	10 times of normal fees
5	More than 180 days	12 times of normal fees

Penalty under Section 10A(2)

If a company fails to file Form INC-20A within 180 days of incorporation, it can face serious consequences:

Penalty for the company: The company may have to pay INR 50,000.

Penalty for directors: Each director may be fined INR 1,000 per day, up to a maximum of INR 1,00,000.

Company removal: The Registrar of Companies (ROC) can remove the company from the official register.

Legal and business issues: The company may be considered non-compliant, which can affect its ability to raise funds or operate legally.

Let's understand this penalty section with a real life example

Suppose a newly incorporated IT company in Pune, FirsTGen Software Limited, was smoothly being managed by its director Mohit Verma, and the company was ready to launch its services. However, during compliance work, they missed filing Form INC-20A within the required 180 days of incorporation. As a result, the company had to pay penalties and its business operations were delayed until the compliance was completed.

Common mistakes while filing Form INC-20A

Here are common mistakes to avoid when filing Form INC-20A:

• No company bank account – Using a personal account or filing before opening a company account.
• Share money not fully received – All subscribers must pay the full amount before filing.
• Wrong or unclear bank proof – Bank statements should clearly show share deposits.
• Mismatch in share capital details – Amount in the form must match the bank deposit.
• Late filing – Filing after 180 days can attract fines and ROC action.
• No professional certification – Form must be certified by a CA, CS, or Cost Accountant.
• Errors in subscriber details – Names, PAN, DIN, or number of shares must be correct.

click here: for company incorporation, MSME registration, ISO certification and GST, ITR filing!

Latest MCA updates / amendments related to Form INC-20A

As we know that the MCA21 V2 portal stopped working on 18 June 2025, and now all company filings are done through the new MCA21 V3 portal. Later, on 14 July 2025, the MCA added 38 major forms to the V3 portal, including important forms like annual returns and audit filings.

The new MCA21 V3 portal is designed to be more user-friendly and keeps related filings connected, making compliance easier to manage.

Benefits of the MCA21 V3 Portal:

1. Improved System Structure
   The V3 portal is more organized and structured compared to the earlier version (V2 portal). However, like any new system, users may sometimes experience technical issues, especially during peak filing periods.
2. Save and Resume Option
   One of the biggest improvements is that users can now fill out a form partially and save it to complete later. It also has better data validation, which reduces errors. The “My Application” dashboard allows users to track the real-time status of their filings.
3. Email-Based Login and Linked Forms
   The portal works on an email-based login system and offers linked form functionality, which helps connect related filings easily.
4. Transitional Challenges
   Since the portal was recently upgraded, some users have faced technical glitches while filing forms or performing other tasks. These issues are mainly part of the transition phase.

Overall, the MCA21 V3 portal is easier to use than V2, with better features and improved tracking. However, during the transition period, users may occasionally face minor difficulties while using the portal.

Conclusion

In this article, you’ll get all the essential information about Form INC-20A - why it’s needed, its purpose, the filing timeline, and why it matters for staying compliant.

Starting a company is exciting! You have your idea, your vision, and the energy to get things moving. But before you jump into business operations, there’s one important step you shouldn’t skip - Form INC-20A.

By the end of this article, you’ll have a clear understanding of this form and how it can be useful for your company.

This form isn’t just another item on the compliance checklist. It’s actually the first major compliance requirement after your company is incorporated. Simply put, it’s a declaration to the government that your company is financially ready and fully prepared to start its business activities.

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