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Form INC 20A is a declaration of commencement of business. The director of the company must file this declaration at the time of commencement of the business. A Chartered Accountant or Company Secretary must verify this declaration.
If you are planning to start your own company under Companies Act 2013, this blog post will serve as an ultimate guide to Form INC-20A.
INC 20A Form MCA is a mandatory declaration that must be submitted by a company’s director within 180 days of incorporation. This declaration is filed with the Registrar of Companies (RoC) to confirm that all subscribers to the Memorandum of Association have paid for the shares they agreed to take at the time of incorporation.
Introduced under Rule 10A in conjunction with Rule 23A of the Companies (Incorporation) Rules, 2014, and governed by the Companies Act 2013, Form INC-20A serves as an official statement for the commencement of business.
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Its filing is a crucial compliance requirement for any company incorporated under the Companies Act 2013 on/after 2 November 2018. Such companies are prohibited from commencing any business operations or exercising borrowing powers until this form has been duly filed with the RoC. INC 20 A due date is 180 days from the date of incorporation of the company.
The purpose of Form INC 20A is to serve as an official declaration to the Registrar of Companies (RoC) that a company is ready to commence its business operations. It confirms that the company has complied with key legal requirements, such as securing its registered office and receiving the minimum paid-up share capital from its subscribers.
This filing also acts as a regulatory safeguard as it prevents the misuse of company incorporation processes by shell entities/fraudulent firms.
The INC 20 Form is applicable in the following cases:
Companies incorporated on or after November 2, 2018 - the date on which the Companies (Amendment) Ordinance, 2018 came into effect.
Companies having a share capital that were incorporated on or after the above-mentioned date.
The following documents are required for filing INC 20A:
Subscribers proof of payment of shares
Certificate of Incorporation of the Company
DSC of the applicant Director
DIN of the applicant Director
You can complete the process of filing INC-20-A online by following the step we have explained below:
You must visit the official Ministry of Corporate Affairs (MCA) website. Then, you must log in using your registered user credentials.
After logging in, you need to navigate to the “e-Form” section. Once you do, you need to choose INC-20A from the list of available electronic forms on the MCA portal.
Now, in INC-20A, you have to fill in all necessary information, including the company's name, registered office address, details of the directors and the date on which the business commenced operations.
In this step, you must attach all the necessary documents, such as a copy of the bank statement showing receipt of share capital, the Certificate of Incorporation and the DSC of the director.
Once all details are filled out and all the necessary documents are uploaded, you can proceed to pay the applicable filing fee to complete the submission process.
Failure to file Form INC-20A within the prescribed timeline can lead to serious penalties and operational hurdles for a company.:
The company may face a penalty of Rs. 50,000 for non-compliance.
Each officer responsible for the delay is liable to a fine of Rs. 1,000 per day, subject to a maximum of Rs. 1,00,000.
The Registrar of Companies (RoC) also has the authority to take action to strike off the company’s name from the official register.
Non-filing of this form can prevent the company from commencing its business activities and may also create difficulties in securing loans or financial assistance.
Filing INC 20A form is a crucial compliance requirement. This requirement must be fulfilled once the company has been incorporated under the Companies Act 2013. This form is considered a key step in formalizing the commencement of business operations. The e-form INC-20A is accessible on the Ministry of Corporate Affairs (MCA) portal and can be filed by the company’s director. Once this form has been filed, RoC issues the company a certificate of commencement of business.
For assistance in company registration, and in ensuring post-registration compliance, connect with our consultants at Registrationwala. We’ll ensure you fulfill all the legal and regulatory requirements!
Q1. What if INC-20A is not filed?
A. If INC-20A is not filed within 180 days from the date of company incorporation, the company and each officer responsible for the delay will be liable for a penalty. In certain cases, the RoC may strike off the company’s name from the official register.
Q2. Can we file INC-22 without INC-20A?
A. No, you cannot file INC 22 without first filing Form INC-20A, especially if the company has already started its business operations. Form INC-20A is a compulsory declaration confirming that the company has commenced business, while Form INC 22 is specifically used to record/update the company’s registered office address with the RoC. Filing INC-20A is a prerequisite requirement for certain post incorporation filings, including form INC 22.
Q3. Where can I download INC-20A?
A. For INC 20A form download, you must visit the official MCA portal.
Q4. How to get Form INC 20A Certificate?
A. To get the INC-20A certificate, you need to file the INC-20A form within 180 days of company incorporation. After filing the form, you will receive the certificate.
Q5. Which company needs to file INC-20A?
A. All the companies incorporated in India, in accordance with the Companies Act, 2013 need to file INC-20A within 180 days of business incorporation. Doing so is mandatory to confirm the business has commenced its business operations.
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