INC-20A Declaration Filing: Rules, Due Date & ROC Compliance

ROC Filing of INC-20A – Declaration for Commencement of Business

A newly incorporated company can start its business operations only after filing and approval of Form INC-20A. This form is a declaration submitted to the ROC (Registrar of Companies) confirming that the company has received the subscription money from shareholders.

The company must file Form INC-20A within 180 days from the date of incorporation.

Penalty for Non-Compliance

Failing to file INC-20A can lead to serious consequences:

• The company may be fined ₹50,000
• Every officer in default may face a penalty of ₹1,000 per day, subject to a maximum of ₹1 lakh
• The company may also face action for closure or removal from records if the declaration is not filed

Applicability of INC-20A

The Ministry of Corporate Affairs (MCA) introduced this rule on 26 January 2019, and it applies to companies incorporated on or after 2 November 2018.

Therefore, all eligible newly incorporated companies should file INC-20A as soon as possible.

Business Cannot Start Before INC-20A Approval

A company cannot start business activities or enter into transactions before receiving approval of INC-20A.

This means the company should not:

• Start business operations
• Raise invoices
• Buy or sell goods/services
• Sign business agreements for operations

Any business activity before approval may be treated as non-compliance.

Deposit Share Capital First

Before filing INC-20A, the initial promoters or shareholders must deposit the share capital amount into the company’s bank account.

Important points:

• The amount should be transferred through banking channels only
• Capital can be deposited in parts
• However, the total deposited amount must match the paid-up share capital mentioned during incorporation

Check Registered Office Details

The company should ensure that its registered office address is properly filed with the ROC.

It is also important to obtain the company’s bank statement showing receipt of share capital, as it is required while filing the form.

After this, Form INC-20A can be filed using a Digital Signature Certificate (DSC).

Documents Required for Filing INC-20A

You will generally need the following documents:

• Company bank statement showing share capital received
• Digital Signature Certificate (DSC) of one director
• Professional certification from a CA, CS, or CMA
• Payment of the prescribed government filing fee
• Confirmation that the registered office address is filed with ROC

Important Conditions Before Filing INC-20A

Before filing the form, make sure:

• No business activity has started
• No invoice has been raised
• No business transaction has taken place in the bank account except share capital deposit
• Share capital is fully received as declared

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