Commencement of Business (INC-20A Filing)
File the declaration of commencement of business with the Registrar of Companies, so your newly incorporated company can start operating and borrowing without risk.
Before starting business operations or exercising borrowing powers, eligible companies must file Form INC-20A with the Registrar of Companies. AMpuesto helps companies prepare and file the declaration accurately, ensuring timely compliance and avoiding penalties. We verify your subscription money, get the form certified, and file it within the 180-day window.
Highlights
- Required for companies with share capital incorporated on or after 2 November 2018
- Filed within 180 days of incorporation
- Business and borrowing are allowed only after filing
- Verified by a CA, CS, or CMA, and filed fully online
What you will get
- Your filing deadline confirmed against your incorporation date
- Subscription money checked against the MOA before anything is filed
- Board resolution drafted to authorise the filing
- Form INC-20A prepared and certified by a practising professional
- Declaration filed with the ROC inside the 180-day window
- Filing acknowledgment for your records
What is commencement of business?
Commencement of business is a legal declaration that a newly incorporated company makes before it starts operating. Under Section 10A of the Companies Act, 2013, a company with share capital must confirm to the Registrar that its shareholders have paid in the capital they agreed to, and that the company is ready to trade. The rule came in to curb shell companies that were incorporated but never actually funded or run. Until the declaration is filed, the company cannot start business or borrow money.
What is Form INC-20A?
Form INC-20A is the declaration of commencement of business filed with the ROC. In it, a director declares that every subscriber to the Memorandum has paid the value of the shares they agreed to take, backed by proof from the company's bank account. A practising Chartered Accountant, Company Secretary, or Cost Accountant verifies the form, and it is filed within 180 days of incorporation. Once the ROC records it, the company is cleared to operate and to exercise its borrowing powers.
Who must file INC-20A?
- Private limited companies with share capital
- Public companies with share capital
- Any company with share capital incorporated on or after 2 November 2018
- Newly incorporated companies, before they start trading or borrowing
Companies without share capital sit outside this requirement. A one person company with share capital does have to file, and an LLP does not, because it has partners' contribution rather than share capital.
When should INC-20A be filed?
The filing sits at the end of a short chain, and each step has to happen before the next.
Company incorporated
The 180-day clock starts on your date of incorporation.
Bank account opened
You open the company's current account in its own name.
Capital received
The subscribers deposit the share money they agreed to pay.
INC-20A filed
We file the declaration with proof of the deposit, within 180 days.
Business continues
With the form recorded, the company trades and borrows without compliance risk.
Step three is where most delays start. The capital shown in your MOA is what the subscribers agreed to pay, not what they have paid, and the declaration cannot be made until the money is actually in the company's account. Opening the account and collecting from every subscriber can take weeks on its own, so the 180 days is tighter in practice than it looks.
Documents required
| Document | Purpose |
|---|---|
| Certificate of Incorporation | Confirms the company and its incorporation date |
| Company PAN | Identifies the company |
| Bank statement | Shows the subscription money received in the company account |
| Proof of subscription money | Evidence each subscriber paid their share value |
| Board resolution | Authorises the filing |
| Bank account details | The company's current account particulars |
| DSC of a director | Signs the form for filing |
Filing process
Consultation
We confirm your incorporation date, capital, and filing deadline.
Document collection
We gather your bank proof and company records.
Verification
We check the subscription money matches the MOA and the account is in the company's name.
Preparation
We prepare Form INC-20A and get it certified by a professional.
INC-20A filing
We file the declaration with the ROC within the 180-day window.
ROC acknowledgement
We hand you the filing acknowledgment for your records.
The Registrar can strike your company off
Skipping INC-20A is costly. The company faces a penalty of ₹50,000, and every officer in default is fined ₹1,000 for each day the default continues, up to ₹1,00,000.
The company also cannot legally start business or borrow, and if the Registrar believes it is not carrying on business, it can begin strike-off proceedings under Section 248. That is the real risk here: the rule exists to catch shell companies, and a company that never filed INC-20A looks like one from the outside. On top of that, the default sits on your compliance record and complicates future filings and funding.
Benefits of timely filing
- Avoid the ₹50,000 company penalty and the daily fine on directors
- Keep your company active and compliant from the start
- Operate your bank account and take loans without a block
- Stay ready for funding and due diligence
- Avoid ROC notices and strike-off action
Why choose AMpuesto
- Experienced professionals: every filing is handled by qualified company-compliance experts.
- Fast processing: we prepare and file within days, well inside the deadline.
- PAN-India service: we file for companies anywhere in India, entirely online.
- Affordable pricing: a clear professional fee quoted upfront, with nothing added later.
- Dedicated compliance expert: one point of contact who tracks your deadline and filing.
- Fully online process: share your documents digitally and follow the filing to completion.
INC-20A is one of two filings that fall due in your first months. The other is your auditor appointment, where the Board has just 30 days from incorporation. After that the yearly cycle begins with private limited annual filing.
Every declaration here is prepared and certified by CA Ashish Gambhir, a practising Chartered Accountant with 7+ years across company compliance, GST, and income tax.
Frequently asked questions
Is INC-20A mandatory?
Can a company start business before filing INC-20A?
What is the due date for INC-20A?
Who can file and certify INC-20A?
What if the subscription money is not received?
What proof is attached?
Can INC-20A be filed late?
What is the penalty for non-filing?
Can the ROC strike off my company?
Does a company without share capital file INC-20A?
How long does filing take?
Clear your company to trade
Send us your incorporation date and bank proof. We check the subscription money, certify the form, and file INC-20A inside the window.
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