INC-20A (Commencement of Business): What It Is, When to File, Penalties (2026)

What is INC-20A?

INC-20A is the Declaration for Commencement of Business filed with the Registrar of Companies (RoC). It confirms two things:

1. Subscribers (shareholders named in MOA) have actually paid for their subscribed shares
2. The registered office is operational and verifiable

Without this declaration, the company cannot legally commence business or exercise borrowing powers. It became mandatory under Section 10A of the Companies Act, 2013 from 2 November 2018.

Who must file?

Every company incorporated on or after 2 November 2018:

• Private Limited Company
• One Person Company (OPC)
• Public Limited Company
• Section 8 Company (Not-for-profit)

Companies incorporated before 2 November 2018 are not required to file INC-20A.

Due date — 180 days from incorporation

Deadline: 180 days from the date of incorporation

Example: If your CoI is dated 1 May 2026, INC-20A is due by 28 October 2026.

This is a hard deadline. After 180 days, the company is treated as having defaulted under Section 10A. Penalties apply, and the company cannot legally operate.

Documents required

• Bank statement showing subscription money credited from each subscriber (most important)
• Bank certificate confirming receipt of subscription money
• Photos of registered office — interior and exterior
• Utility bill of registered office (not older than 2 months)
• Declaration by director confirming receipt and operational office
• Professional certification by CA / CS / CMA

Process (typically 1-3 days)

Step 1: Receive share subscription money — Each subscriber transfers their share subscription to the company's bank account.

Step 2: Bank certificate — Obtain a certificate from your bank confirming receipt of subscription credits with date and amount.

Step 3: Director declaration — Director gives declaration in Form INC-20A confirming receipt and registered office.

Step 4: Professional certification — CA/CS/CMA in practice certifies the form.

Step 5: File on MCA portal — Upload INC-20A with bank statement, bank certificate, photos and utility bill. Pay filing fee (₹200-600 depending on capital). Approval typically same day.

Penalty for missed deadline

Late filing penalties are steep:

• ₹50,000 fixed fine on the company
• ₹1,000 per day on every director, capped at ₹1 lakh per director
• Company cannot legally do business
• RoC may strike off the company
• Filing requires payment of all accumulated fees

Example: 90-day delay = ₹50,000 (company) + ₹90,000 (per director, 2 directors = ₹1.8 lakh). Total penalty ₹2.3 lakh for a simple compliance failure.

Common mistakes

1. Filing without depositing subscription — INC-20A cannot be filed until each subscriber has paid. Subscribers must transfer the agreed amount from their personal accounts.
2. Subscribing too high — If you subscribed to ₹50 lakh authorised capital but can only fund ₹5 lakh, you have a problem. Conservative approach: subscribe ₹1-10 lakh actually fundable.
3. Wrong bank account — Subscription must come from the subscriber's personal account, not the company itself.
4. Photos showing closed/empty office — Photos should show an operational setup. Even a basic table + chair + plaque with company name suffices.
5. Forgetting after busy launch — Founders launch, get busy with operations, and forget INC-20A. 180 days passes quickly. Set a reminder.