Home Services M-Corporate Commencement of Business (INC-20A)

Commencement of Business (INC-20A)

Form INC-20A filing within 180 days of incorporation — declaration that all subscribers have deposited paid-up capital, mandatory before commencing any business operations.

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Overview

Form INC-20A is a Declaration of Commencement of Business that every company incorporated with share capital on or after November 2, 2018 must file with the MCA within 180 days of receiving its Certificate of Incorporation. The declaration confirms that every subscriber to the Memorandum of Association has paid the full value of shares agreed to be taken by them. Without filing INC-20A, a company cannot commence any business operations, borrow money, or exercise its borrowing powers.

INC-20A is effectively the company's 'go-live' clearance from MCA confirming that its initial paid-up capital is in place. Banks typically require INC-20A before processing any business transactions in the company's current account. Penalty for non-filing within 180 days: Company — Rs.50,000 | Every officer in default — Rs.1,000/day (maximum Rs.1 lakh). The ROC can also initiate action to strike off the company for non-filing of INC-20A.

MFiling files INC-20A for all company incorporations — typically within 7–10 days after the company's bank account is activated and paid-up capital is deposited.

MFiling professional charges: from Rs.999 per INC-20A filing.

Key Benefits

Filed Within 180-Day Window
INC-20A filed promptly after paid-up capital deposit — no Rs.50,000 company penalty or Rs.1,000/day officer penalty.
Unlocks Business Operations
Without INC-20A, the company cannot legally commence business — filing clears the company for operations.
Required for Bank Current Account Activation
Most banks require INC-20A before activating the company's current account for business transactions.
Prevents ROC Strike-Off Action
ROC can initiate strike-off for companies that fail to file INC-20A — timely filing prevents this.
Borrowing Powers Activated
Company cannot borrow money before INC-20A is filed — filing activates the company's full legal capacity.
Late Filing Available With Additional Fee
If 180-day deadline is missed, INC-20A can still be filed with late fees (2x to 12x multiplier) — MFiling files promptly to minimise penalty exposure.

Documents Required

Certificate of Incorporation (COI)
Company Bank Account Statement Showing Credits from All Subscribers
Memorandum of Association Showing Subscriber Names and Share Subscription Amounts
Class 3 DSC of a Director (for digital signing of INC-20A)
Director's Declaration Confirming All Subscribers Have Paid Their Share Subscription in Full
KYC Documents of All Subscribers — PAN and Aadhaar Submitted to the Company's Bank
Government Fee Payment Receipt — Rs.200 to Rs.600 based on Share Capital (paid on MCA portal)

How it Works

Open Company Bank Account (Week 1–2 after incorporation)

Open a current account in the company's name — KYC all subscribers with the bank.

All Subscribers Deposit Share Capital (Within 180 days of COI)

Each subscriber transfers their share subscription amount to the company's bank account — obtain bank statement confirming all credits.

Download Bank Statement Showing Subscriber Credits (After all credits received)

Download official bank statement clearly showing each subscriber's transfer with name and amount.

File Form INC-20A on MCA Portal (Within 180 days of COI)

Log in to MCA21, select INC-20A form, attach bank statement, sign with director's DSC, and submit.

Receive MCA Acknowledgement (Same day or next day)

INC-20A processed — acknowledgement email received. Company is now cleared to commence business operations.

Calculate and Pay Government Filing Fee (Before filing)

Determine applicable fee: Rs.200 (below Rs.1 lakh share capital), Rs.300 (Rs.1–5 lakhs), Rs.400 (Rs.5–25 lakhs), Rs.500 (Rs.25 lakhs–1 crore), Rs.600 (above Rs.1 crore) — pay on MCA portal before filing.

Frequently Asked Questions

What is the deadline for filing INC-20A and what happens if it is missed?
INC-20A must be filed within 180 days of the Certificate of Incorporation date. Missing the deadline attracts a penalty of Rs.50,000 for the company and Rs.1,000 per day for each officer in default (capped at Rs.1 lakh per officer). The ROC may also initiate action to remove the company from the register if INC-20A is not filed. There is no official extension mechanism — the filing must be made even after the deadline with the applicable late fee.
Is INC-20A required for companies incorporated before November 2018?
No. INC-20A was introduced by the Companies (Amendment) Ordinance, 2018 effective November 2, 2018. Companies incorporated before this date are not required to file INC-20A. However, all companies incorporated on or after November 2, 2018 (including OPCs, private limited companies, and public companies with share capital) must file INC-20A. Section 8 companies (non-profit) and companies without share capital are exempt from this requirement.
What is the government fee for filing INC-20A and does late filing cost more?
The government fee for INC-20A is based on the company's share capital: Rs.200 (below Rs.1 lakh), Rs.300 (Rs.1–5 lakhs), Rs.400 (Rs.5–25 lakhs), Rs.500 (Rs.25 lakhs–1 crore), Rs.600 (above Rs.1 crore). Late filing (after 180 days) incurs multiplied fees: 2x (up to 30 days late), 4x (30–60 days), 6x (60–90 days), 10x (90–180 days), and 12x (180+ days). This is in addition to the substantive penalty of Rs.50,000 on the company and Rs.1,000/day per officer.
Service Price
₹999
Starting price · GST extra
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Filed Within 180-Day Window
INC-20A filed promptly after paid-up capital deposit — no Rs.50,000 company penalty or Rs.1,000/day officer penalty.
Unlocks Business Operations
Without INC-20A, the company cannot legally commence business — filing clears the company for operations.
Required for Bank Current Account Activation
Most banks require INC-20A before activating the company's current account for business transactions.
Prevents ROC Strike-Off Action
ROC can initiate strike-off for companies that fail to file INC-20A — timely filing prevents this.
Borrowing Powers Activated
Company cannot borrow money before INC-20A is filed — filing activates the company's full legal capacity.
Late Filing Available With Additional Fee
If 180-day deadline is missed, INC-20A can still be filed with late fees (2x to 12x multiplier) — MFiling files promptly to minimise penalty exposure.

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