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Home / Company Law & Secretarial Services / Commencement of Business (INC-20A)
Last updated: 2 October 2026
A company with share capital cannot start business or borrow until it files a declaration of commencement of business in Form INC-20A. Our team checks that the subscription money is in the company’s bank account and files the form well within 180 days of incorporation.
Under section 10A of the Companies Act, 2013, every company incorporated with share capital must file a declaration in Form INC-20A within 180 days of incorporation. The declaration confirms that each subscriber to the memorandum has paid for the shares agreed to be taken.
If the declaration is not filed, the company and its officers face penalties, and the Registrar may start action to remove the company from the register if it has not started business.
Based on the Companies Act, 2013 and the rules made under it. Last updated: 27 September 2026.
From incorporation to file INC-20A
Provision requiring the declaration
Applies to companies incorporated with share capital
Company cannot borrow or start business before filing
Subscription money shown in the company’s bank account
ROC may act if the company has not commenced business
Most problems start in the first month after incorporation.
Subscription money not deposited in time for the declaration.
Founders focus on business and the 180-day deadline passes.
Starting business or borrowing before the declaration is filed.
Other first-year steps for a new company.
Incorporating a new company.
First auditor within 30 days.
The yearly compliance calendar.
Registers from day one.
We confirm subscription money has reached the company’s account.
Bank statement and supporting papers collected.
Form INC-20A prepared for director signature.
Certification by a practising professional.
Form filed on the MCA portal.
First-year compliance calendar shared with you.
A late INC-20A can still be filed, but costs more and carries penalties.
INC-20A can be filed with additional fees after 180 days.
The company is liable to a penalty of ₹50,000.
Officers in default face ₹1,000 a day, up to ₹1 lakh.
The ROC may begin strike-off if business has not commenced.
Share your query and our team will reply during business hours.
A declaration that the company’s subscribers have paid for their shares. Companies with share capital must file it before starting business or borrowing.
Within 180 days of the date of incorporation.
₹50,000 for the company and ₹1,000 a day for each officer in default, up to ₹1 lakh.
Yes, with additional fees, but penalties may still apply.
No. The requirement applies to companies incorporated with share capital.
ACS – Director, Expertvuw Management Pvt Ltd
This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.