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Struggling with INC-20A? Your Easy Guide to Filing the Declaration of Commencement of Business!

Hey there, business builders!

You’ve successfully incorporated your company – fantastic! Now, before you fully dive into operations, there's one critical compliance step you absolutely must complete: filing Form INC-20A, the Declaration of Commencement of Business. This isn't just a formality; it's mandatory under Section 10A(1) of the Companies Act, 2013. Without it, your company cannot legally commence business, borrow, or even raise funds. Failure to file within the stipulated time can lead to a hefty ₹50,000 penalty for the company, and ₹1,000 per day for officers (up to ₹1 lakh), with the risk of your company's name being struck off by the ROC.

Who Needs to File INC-20A?

This form applies to all companies incorporated after November 2, 2018, that possess a share capital. This includes most Private Limited and Public Limited Companies. Companies without share capital are generally exempt.

Your Pre-Filing Checklist: Get Ready!

Before you jump onto the MCA portal, ensure you have these ready:

  • An active company bank account.
  • Proof that the subscribed share capital has been received by the company (usually a bank statement).
  • A declaration by a director (part of the form itself) confirming compliance.
  • The form must be verified and digitally signed by a practising CA, CS, or CMA.

Simple Steps to File INC-20A on MCA Portal

Filing is straightforward once you know the process:

  1. Log In & Locate: Visit the MCA website, log in with your credentials, and download Form INC-20A under "MCA Services" > "e-Filing" > "Company Forms".
  2. Fill in Details: Enter your company’s CIN, SRN of incorporation form, date of incorporation, and director details. The crucial step here is to attach a clear bank statement showing the receipt of subscriber money.
  3. Digital Signatures: The declaring director will affix their Digital Signature Certificate (DSC), followed by a practising CA/CS/CMA who will also digitally sign and certify the form.
  4. Upload & Pay: Upload the completed e-Form on the MCA portal and proceed to pay the government fees.
  5. Receive SRN: Upon successful submission, an SRN will be generated. Keep it safe for future reference!

Crucial Reminders for a Smooth Filing

  • Strict Deadline: File INC-20A within 180 days of your company's incorporation. No extensions!
  • Bank Statement Clarity: Ensure your bank statement unequivocally shows the receipt of the full subscribed share capital.

Filing INC-20A is a key milestone in your company's journey to full legal operation. It’s an essential step that ensures compliance and prevents future complications. If you need any assistance, FilingWorld.in is always ready to guide you through the process seamlessly!

FAQs
Form INC-20A is a legal declaration required under Section 10A of the Companies Act, 2013. It confirms to the Registrar of Companies (ROC) that the company has received the minimum paid-up share capital from its initial subscribers. Without filing and getting this form approved, a company cannot start its business or borrow funds.
The form must be filed by all companies incorporated on or after November 2, 2018, that have a share capital. Companies limited by guarantee that do not have a share capital are not required to file this form.
The form must be filed with the ROC within 180 days from the date of the company's incorporation. This is a strict deadline, and missing it can lead to severe penalties.
You need to attach a copy of the company's bank statement showing the credit of the paid-up capital from the subscribers. Other required documents include a declaration from the director and a certification by a practicing professional (a CA or CS).
Missing the deadline can result in significant penalties. The company is liable for a penalty of Rs. 50,000, and every defaulting officer is liable to a penalty of Rs.1,000 per day, up to a maximum of Rs.1 lakh. The ROC can also initiate action to remove the company's name from the register if it doesn't believe the company is carrying on business.
Yes, you can file the form even after the 180-day deadline, but you will have to pay a substantial late fee in addition to the normal filing fee. This fee is a multiplier of the normal fee and increases based on the number of days the filing is delayed.
The fee for filing INC-20A depends on the company's authorized share capital. For companies with a share capital of up to Rs. 1 lakh, the normal fee is Rs. 200. The fee increases for companies with higher authorized capital.