INC 20A Filing – Commencement of Business Certificate
INC-20A is a mandatory declaration that every company incorporated in India with share capital must file with the Registrar of Companies (ROC). This form confirms that the shareholders have paid the subscription amount mentioned in the Memorandum of Association and that the company is ready to commence its business operations.
According to the Companies Act, 2013, companies must file the INC-20A form within 180 days of incorporation. Without filing this declaration, a company cannot legally begin business activities or exercise borrowing powers. Failure to comply may lead to heavy penalties and even removal of the company name from the MCA register.
Benefits of INC 20A Filing
- Legal approval to start business operations
- Avoid penalties from the Ministry of Corporate Affairs
- Maintain proper company compliance
- Build credibility with banks and investors
- Ensure smooth company operations
Process of Filing INC-20A
- Company incorporation with share capital
- Shareholders deposit the subscription amount in the company bank account
- Preparation of necessary documents
- Filing of INC-20A form with MCA
- Approval from Registrar of Companies
Documents Required
- Certificate of Incorporation
- Company bank statement showing share capital deposit
- Digital Signature Certificate (DSC) of director
- Director Identification Number (DIN)
- Board resolution
Frequently Asked Questions
What is INC-20A?
INC-20A is a declaration filed with the Registrar of Companies confirming that shareholders have paid the share capital and the company can start its business operations.
Who must file INC-20A?
All companies incorporated with share capital are required to file this declaration.
What is the deadline for filing INC-20A?
The form must be filed within 180 days from the date of company incorporation.
What happens if INC-20A is not filed?
The company may face penalties and the ROC may initiate action to strike off the company.
Can a company operate without filing INC-20A?
No. A company cannot legally commence business without filing INC-20A.
