Form INC-20A Filing in India: Guide for Commencement of Business

Congratulations on registering your company! Receiving the Certificate of Incorporation is an exciting milestone. However, before starting business activities, raising funds, or issuing invoices, there is one important compliance requirement you should complete—Form INC-20A.

Many newly incorporated companies overlook this form, but it plays an important role in business compliance. Filing INC-20A confirms that your company has received the subscribed share capital and is legally ready to start operations.

What is Form INC-20A?

Form INC-20A is a declaration filed with the Registrar of Companies (ROC) under Section 10A of the Companies Act, 2013.

This form confirms that the shareholders or subscribers to the company have deposited the agreed share capital into the company’s bank account after incorporation.

In simple terms, filing INC-20A means:

“The company is ready to legally start its business operations.”

The form must be filed before the company:

• Starts business activities
• Issues invoices
• Enters into business transactions
• Applies for business funding or loans

Why Was INC-20A Introduced?

The Ministry of Corporate Affairs (MCA) introduced this compliance requirement to ensure that only genuine companies start operations.

Earlier, many companies were being registered without carrying out any real business activities. To improve transparency and compliance, companies are now required to confirm receipt of share capital through Form INC-20A.

The objective is to:

• Prevent misuse of company registrations
• Confirm genuine business activity
• Ensure proper compliance from the beginning
• Improve transparency in business operations

Who Needs to File Form INC-20A?

Form INC-20A is generally applicable to newly incorporated companies having share capital.

Companies Usually Exempt

The following entities are generally not required to file this form:

• Companies without share capital
• Limited Liability Partnerships (LLPs)
• Certain non-profit companies

Due Date for Filing INC-20A

Form INC-20A must be filed within 180 days from the company’s incorporation date.

For example, if a company is incorporated in January, the form should be filed within the next 180 days.

It is always better to complete the filing early to avoid delays and compliance issues.

Documents Required for Filing INC-20A

Before starting the filing process, keep the following documents ready:

1. Company Bank Statement

The company’s bank statement is required to confirm that the subscribed share capital has been deposited.

The statement should clearly show:

• Company name
• Account details
• Deposit date
• Share capital received from shareholders

2. Certificate of Incorporation (COI)

This document confirms that the company has been legally incorporated.

3. MOA and AOA

The Memorandum of Association (MOA) and Articles of Association (AOA) may be required to verify company and share capital details.

4. Board Resolution (Optional)

A board resolution approving the filing of INC-20A may be maintained for internal records.

5. Digital Signature Certificate (DSC)

The form must be digitally signed by a company director using a valid Digital Signature Certificate (DSC).

Step-by-Step Process to File INC-20A

Step 1: Open a Company Bank Account

After incorporation, open a bank account in the company’s name.

Once the account is active, shareholders should deposit the subscribed share capital.

Step 2: Obtain the Bank Statement

After the capital is deposited, obtain the bank statement showing the transaction.

Ensure the statement is:

• Clear and readable
• Properly issued by the bank
• Showing deposit details and company name

Step 3: Login to the MCA Portal

Visit the MCA portal and log in using your registered credentials.

Download the latest version of Form INC-20A.

Step 4: Fill in the Required Details

Enter the required company information carefully, including:

• Corporate Identification Number (CIN)
• Company name
• Registered office address
• Details of share capital received

Attach the required supporting documents.

Step 5: Digital Signing of the Form

The form must be digitally signed by a director using a valid DSC.

In certain situations, certification by a practicing professional may also be required.

Step 6: Submit the Form

Upload the completed form through the MCA portal.

After successful submission, an acknowledgment number will be generated for future reference.

What Happens If INC-20A Is Not Filed?

Failure to file INC-20A within the prescribed timeline may lead to serious consequences:

• The company may face penalties
• Directors or officers may also become liable for non-compliance
• The company may not be able to legally start business operations
• Regulatory action may be initiated against the company

Because of these risks, timely filing is strongly recommended.

Common Mistakes to Avoid While Filing INC-20A

Many companies face delays due to small filing mistakes. Avoid these common errors:

• Filing before receiving share capital
• Uploading incomplete or unclear bank documents
• Using an expired digital signature
• Waiting until the last date for filing
• Entering incorrect company information

Double-check all details before submission to avoid rejection or resubmission.

Benefits of Filing INC-20A on Time

Timely filing of INC-20A offers several benefits:

• Helps your company legally start operations
• Improves business credibility
• Supports smooth compliance with ROC requirements
• Avoids penalties and legal complications
• Builds trust with clients, vendors, and stakeholders

Conclusion

Form INC-20A is one of the first and most important ROC compliances after company incorporation. It confirms that the company has received its subscribed capital and is legally ready to begin operations.

Completing this filing on time helps businesses avoid compliance issues and ensures a smooth start to operations. To avoid mistakes and delays, it is important to keep documents ready and submit the form correctly within the prescribed timeline.

Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. K M GATECHA & CO LLP accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.