Direct Answer
INC-20A is a declaration of commencement of business filed by certain newly incorporated companies having share capital. Under Section 10A of the Companies Act, 2013, the declaration must generally be filed within 180 days from incorporation before the company commences business or exercises borrowing powers.
Quick Summary
- INC-20A is the declaration of commencement of business.
- It applies to companies incorporated after the relevant provisions came into force and having share capital.
- The declaration is generally required within 180 days of incorporation.
- The director confirms that subscribers have paid the value of shares agreed to be taken.
- The company must also have filed verification of its registered office.
- INC-20A is filed electronically through the MCA portal.
- A valid Digital Signature Certificate (DSC) is required for the filing.
- Non-compliance can result in statutory penalties.
What Is INC-20A?
INC-20A is the MCA form used for the Declaration of Commencement of Business. It was introduced under Section 10A of the Companies Act, 2013.
The purpose of this declaration is to confirm that the subscribers to the company’s memorandum have paid the value of the shares they agreed to take.
A company covered by Section 10A cannot commence business or exercise borrowing powers unless the required declaration has been filed with the Registrar and the registered-office verification requirement has been satisfied.
For new businesses, INC-20A is therefore an important post-incorporation compliance.
Who Needs to File INC-20A?
The requirement generally applies to a company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having share capital.
The declaration is made by a director and confirms payment of the value of shares agreed to be taken by the subscribers.
Before filing, the company should also ensure that its registered office has been properly verified with the Registrar as required under Section 12.
INC-20A Filing Due Date
The declaration must generally be filed within 180 days from the date of incorporation.
For example, if a company was incorporated on 1 April, the compliance deadline should be calculated from that date according to the applicable statutory period.
Companies should not wait until the last few days. The company should first ensure that share subscription money has been received and that the required registered-office compliance has been completed.
Documents and Information Required
Before starting the INC-20A filing, keep the following information ready:
- Corporate Identity Number (CIN)
- Company name
- Date of incorporation
- Details of subscribers
- Details regarding payment for subscribed shares
- Director details
- Digital Signature Certificate (DSC)
- Registered office verification details
- Other information requested in the MCA webform
The exact information and attachments should be checked against the current MCA form and instruction kit before submission.
Step-by-Step INC-20A Filing Process
Step 1: Access the MCA Portal
Visit the official Ministry of Corporate Affairs website and log in using valid MCA credentials.
The MCA instruction kit provides the filing route through MCA services and the company forms section.
Step 2: Search for INC-20A
Search for “INC-20A – Declaration of commencement of business” on the MCA portal.
The MCA’s current instruction kit also provides an option to access the form through the website search function.
Step 3: Enter Company Details
Enter the company’s required information, including its CIN and other applicable details.
Depending on the user profile, company information may be pre-populated or the CIN may be searched and selected.
Step 4: Complete the Declaration
Enter the required information in the INC-20A webform.
The director must provide the declaration confirming that the subscribers have paid the value of shares agreed to be taken.
Step 5: Verify the Information
Carefully check:
- CIN
- Company name
- Incorporation date
- Subscriber information
- Share details
- Director information
- Registered-office compliance
Incorrect information can cause filing problems or resubmission.
Step 6: Submit the Form
Once the form is complete, submit the webform through the MCA portal.
According to the MCA instruction kit, an SRN (Service Request Number) is generated after successful submission.
Step 7: Affix DSC
The required Digital Signature Certificate must be affixed to the generated PDF as prescribed.
The MCA instruction kit specifies uploading the DSC-affixed PDF through the MCA portal.
Step 8: Upload and Pay the Applicable Fee
Upload the DSC-affixed document and complete the applicable payment process.
The MCA instruction kit specifies timelines associated with DSC upload and payment after SRN generation, so applicants should follow the current MCA instructions carefully.
Step 9: Receive Acknowledgement
After successful completion, an acknowledgement email is generated.
The SRN can also be used for future correspondence relating to the filing.
Penalty for Non-Filing of INC-20A
Non-compliance with Section 10A can have significant consequences.
Under Section 10A(2), the company can be liable to a ₹50,000 penalty, while every officer in default can be liable to ₹1,000 for each day during which the default continues, subject to a maximum of ₹1 lakh for the officer.
Additionally, where the declaration has not been filed within 180 days and the Registrar has reasonable cause to believe that the company is not carrying on business or operations, action for removal of the company’s name may be initiated under the Companies Act.
Common Mistakes to Avoid
New companies should avoid these common INC-20A filing mistakes:
- Missing the 180-day deadline.
- Filing before confirming payment of subscribed share capital.
- Providing an incorrect CIN or company detail.
- Ignoring registered-office verification requirements.
- Using an invalid or improperly associated DSC.
- Failing to complete the DSC upload and payment process after generating the SRN.
- Waiting until the last day to complete the filing.
INC-20A and Company Registration in Ghaziabad
Companies incorporated through Company Registration in Ghaziabad should also plan their post-incorporation compliances from the beginning.
Company incorporation is only the starting point of corporate compliance. After incorporation, a company may have several statutory obligations depending on its structure and activities.
INC-20A is particularly important for applicable companies having share capital because the declaration relates to commencement of business and borrowing powers.
If you are starting a company in Ghaziabad, professional assistance can help you coordinate incorporation, registered-office compliance and subsequent MCA filings.
Expert Advice from TaxCaller
Tax compliance should not be treated as something to address only after a business starts operating.
After incorporation, founders should maintain a compliance calendar covering applicable MCA, tax and accounting requirements. For INC-20A, the key checks are the 180-day deadline, payment of subscribed share capital, registered-office verification and correct DSC-based filing.
TaxCaller assists businesses with company incorporation and related compliance requirements so founders can focus on building their business while keeping statutory filings organized.
Frequently Asked Questions
1. What is INC-20A?
INC-20A is the declaration of commencement of business under Section 10A of the Companies Act, 2013. It is generally applicable to newly incorporated companies having share capital and confirms that subscribers have paid the value of shares they agreed to take.
2. What is the due date for INC-20A?
INC-20A is generally required to be filed within 180 days from the company’s date of incorporation. Companies should calculate the deadline carefully and complete the filing before the statutory period expires.
3. Can a company start business without filing INC-20A?
A company covered by Section 10A cannot commence business or exercise borrowing powers unless the required declaration has been filed and the applicable registered-office verification requirement has been fulfilled.
4. What happens if INC-20A is not filed?
Non-compliance can result in statutory penalties. The company may be liable to ₹50,000, while an officer in default may face ₹1,000 per day, subject to the statutory maximum of ₹1 lakh for that officer.
5. Is DSC required for INC-20A?
The MCA filing process requires the prescribed digital-signature procedure. The MCA instruction kit specifically provides for affixing the DSC and uploading the DSC-affixed PDF.
6. What information is needed for INC-20A?
The filing requires company identification details and information relating to subscribers, shares and the declaration of payment. The applicant should also ensure that the registered-office requirement has been completed.
7. Can INC-20A be filed online?
Yes. INC-20A is filed electronically through the MCA portal. The current MCA instruction kit describes the online webform, submission, SRN generation, DSC upload and payment process.
8. Can TaxCaller help with INC-20A?
Yes. TaxCaller can assist businesses with company incorporation and related compliance requirements, including helping founders organize their post-incorporation statutory filings.
Conclusion
INC-20A filing is an important post-incorporation compliance for applicable companies having share capital. The declaration is generally required within 180 days of incorporation and involves confirming payment of subscribed share capital along with compliance with the registered-office requirement.
Whether you are completing Company Registration in Ghaziabad or establishing a company elsewhere in India, maintaining a proper post-incorporation compliance calendar can help prevent missed statutory deadlines and penalties.
