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Commencement of Business Filing India | Form INC-20A, Section 10A & CA Certification | CA Mumbai
Post-Incorporation Compliance

Commencement of Business Filing Services in India
Form INC-20A, Section 10A Compliance, CA Certification & Post-Incorporation Advisory

Section 10A applicability check, paid-up capital receipt verification, registered office confirmation, CA certification, Form INC-20A filing within 180 days, late filing penalty assessment, and post-incorporation compliance calendar setup — for every company incorporated after November 2, 2018.

Part of our post-incorporation practice: Company Compliance AOC-4 Filing Director Change Dormant Status

Overview

What Is the Commencement of Business Declaration?

Section 10A of the Companies Act 2013, inserted by the Companies (Amendment) Ordinance 2018 effective November 2, 2018, makes it a legal requirement for every company incorporated after that date with a share capital to file a declaration in Form INC-20A within 180 days of incorporation. The declaration confirms two specific facts: (1) every subscriber to the MOA has paid in full the value of shares subscribed for — and this payment has been received in the company's bank account; and (2) the company has a registered office address that has been established and is capable of receiving communications.

Without Form INC-20A, a company cannot legally commence business or exercise any borrowing powers. A company that commences business without filing INC-20A violates Section 10A, and its directors face personal penalties of ₹1,000 per day for every day of continuing default after the 180-day window — with no upper cap.

N D Savla & Associates provides complete Commencement of Business filing services for newly incorporated Private Limited Companies, One Person Companies, and public companies across Mumbai and India — from paid-up capital receipt verification and registered office confirmation through Form INC-20A preparation, CA certification, MCA portal filing, and post-incorporation company compliance calendar setup.

Applicability

Who Must File Form INC-20A — and Who Is Exempt?

Section 10A applies specifically to companies incorporated on or after November 2, 2018 with a share capital. The obligation is triggered by the date of incorporation — not by actual business commencement intent.

Private Limited Companies

All Private Limited Companies incorporated after November 2, 2018 with any share capital — even ₹1,000 of paid-up capital — must file INC-20A within 180 days of incorporation.

One Person Companies (OPCs)

OPCs incorporated after November 2, 2018 must file INC-20A. The OPC's sole director files the declaration on behalf of the company. Paid-up capital receipt requirement applies identically.

Public Limited Companies

Public companies incorporated after November 2, 2018 with share capital must file INC-20A within 180 days of their date of incorporation.

Exempt — Companies Without Share Capital

Companies limited by guarantee without share capital — such as certain Section 8 non-profit companies — are not required to file INC-20A. Section 10A applies only to companies "having a share capital."

Exempt — Pre-November 2018 Companies

Companies incorporated on or before November 2, 2018 have no INC-20A obligation. Section 10A was inserted after these companies were already incorporated — the obligation does not apply retroactively.

Section 8 Companies with Share Capital

Section 8 companies (non-profit) can be structured as companies limited by shares. Section 8 companies with share capital incorporated after November 2, 2018 must file INC-20A. Those limited by guarantee are exempt.

Consequences of Non-Filing

What Happens If Form INC-20A Is Not Filed?

Non-filing of Form INC-20A combines a legal bar on business commencement, personal director penalties, and ROC strike-off risk. The ₹1,000 per day per officer in default penalty has no upper cap — a company that discovers the oversight 2 years after incorporation has accumulated ₹7,30,000 in penalties per officer before the ₹50,000 company penalty.

Aspect Filed on Time Not Filed — Consequence Provision
Business Commencement Company can legally commence operations — contracts, invoicing, hiring Company cannot legally commence business — any business commenced is ultra vires Section 10A(1)
Borrowing Powers Company can borrow — bank loans, overdrafts, working capital Company cannot exercise any borrowing powers even if facilities are sanctioned Section 10A(1)
Penalty on Company No penalty ₹50,000 one-time penalty on the company Section 10A(2)
Penalty on Officers No penalty ₹1,000 per day per officer in default — no upper cap Section 10A(2)
ROC Action No action — company in good standing ROC can initiate strike-off under Section 248 for non-commencement within one year Sections 10A(3) & 248
Investor Due Diligence INC-20A compliance confirmed — funding can proceed cleanly Pending INC-20A flagged as compliance deficiency — delays or blocks funding round Investor due diligence standard

Our 6-Step Process

How We Handle Commencement of Business Engagements

Our INC-20A engagement follows a structured six-step process — from Section 10A applicability check through CA certification, MCA portal filing, and post-incorporation compliance calendar setup.

01

Incorporation Date and Section 10A Applicability Check

We confirm the company's date of incorporation and verify that it is incorporated after November 2, 2018 with a share capital — confirming Section 10A applicability. We calculate the remaining days within the 180-day window and the accumulated penalty exposure if the window has already passed.Companies Act 2013 — Section 10A
02

Paid-Up Capital Receipt Verification

We verify that the full subscription amount from each subscriber to the MOA has been received in the company's current account. We review the bank statement to confirm the credit entries — amount, date, and payer identification — for each subscriber's subscription payment. If any subscriber has not yet paid, we advise on completing the payment before proceeding. The INC-20A declaration is false if filed before all subscription amounts are credited.
03

Registered Office Document Compilation

We compile the registered office proof — rent agreement or NOC from the property owner, and utility bill for the registered office address not more than 2 months old. If Form INC-22 has already been filed, we confirm it is in order. If not, we coordinate the INC-22 filing alongside INC-20A — both are post-incorporation requirements, with INC-22 typically filed first.Rent/NOC + Utility Bill ≤ 2 Months Old
04

Form INC-20A Preparation and CA Certification

We prepare Form INC-20A on the MCA portal — entering the company's CIN, the directors' details, and the declaration that paid-up capital has been received and the registered office is established. The certifying CA partner provides professional certification with their membership number and digital signature. The director making the declaration also signs with their DSC. Our CA certification is provided in-house — the same CA who reviews the bank statement certifies the form.CA / CS / CWA Certification Mandatory
05

MCA Portal Filing and Fee Payment

We submit Form INC-20A on the MCA portal at mca.gov.in and pay the applicable filing fee (based on the company's authorised share capital) and any late filing additional fees where the 180-day window has passed. We download the SRN (Service Request Number) and, once processed, the filing acknowledgement as confirmation of the submission.
06

Post-Filing Compliance Calendar Setup

After INC-20A is filed, the company is legally enabled to commence business and exercise borrowing powers. We set up the company's initial compliance calendar — covering the first year's AGM and financial statement deadlines, DIR-3 KYC for directors, auditor appointment (Form ADT-1), annual return (MGT-7), financial statement filing (AOC-4), and any other immediate post-incorporation obligations.

Related Services

Our Broader Post-Incorporation and Company Compliance Practice

Form INC-20A is the first compliance filing — but post-incorporation obligations continue immediately after it is filed. Our practice covers the complete first-year compliance framework:

Company ComplianceAnnual ROC filings (AOC-4, MGT-7), AGM compliance, DIR-3 KYC, and event-based filings.
AOC-4 FilingAnnual financial statement filing with the ROC within 30 days of AGM.
Director ChangeDIR-12 filing for director appointment, resignation, and DIN-related changes.
Authorized Capital IncreaseForm SH-7 filing — the prerequisite before any share issuance post-INC-20A.
Dormant Status FilingSection 455 dormant company status for incorporated but inactive companies.
OPC ComplianceOne Person Company compliance — INC-20A, AOC-4 within 180 days, and first-year setup.

Frequently Asked Questions

Common Questions on Commencement of Business Filing

What is the Commencement of Business declaration and who must file it?
The Commencement of Business declaration is a statutory filing under Section 10A of the Companies Act 2013, made in Form INC-20A on the MCA portal. Every company incorporated after November 2, 2018 with a share capital — Private Limited Companies, OPCs, and public companies — must file it within 180 days of incorporation. It confirms that all subscribers have paid for their shares (paid-up capital received in the company's bank) and that the company has a verified registered office. Without this filing, the company cannot legally commence business or exercise any borrowing powers.
What happens if Form INC-20A is not filed within 180 days?
Non-filing after the 180-day window attracts: (1) ₹50,000 penalty on the company; (2) ₹1,000 per day per officer in default — from the 181st day until the form is filed, with no upper cap; and (3) ROC power to initiate strike-off proceedings under Section 248. Additionally, the company cannot legally commence business or borrow until INC-20A is filed — any business conducted or borrowings made in this period violate Section 10A.
Which companies must file Form INC-20A?
All companies incorporated after November 2, 2018 with a share capital — Private Limited Companies, OPCs, and public limited companies. Companies limited by guarantee without share capital (certain Section 8 companies) are exempt. Companies incorporated on or before November 2, 2018 are also exempt — Section 10A applies only to post-November 2018 incorporations.
What documents are needed to file Form INC-20A?
Required documents: (1) Bank statement or certificate showing receipt of full subscription amount from each subscriber to the MOA — in the company's current account; (2) Registered office proof — rent agreement or NOC from property owner plus utility bill not more than 2 months old; (3) DSC of the authorised director making the declaration; (4) Digital signature and certification of a CA, CS, or CWA. The CA/CS/CWA certifies that the declaration is true and correct based on verification of the bank and registered office records.
Can Form INC-20A be filed after the 180-day deadline?
Yes — late filing is possible on the MCA portal with the applicable late filing additional fees plus the ₹50,000 company penalty and the accumulated daily director penalties. There is no absolute cut-off after which INC-20A cannot be filed — but every day of delay adds ₹1,000 per director to the penalty. The ROC can also initiate strike-off proceedings after one year of non-filing. Companies that discover the oversight late should file immediately to stop further penalty accumulation.

Ready to File Your Commencement of Business Declaration?

Whether you need INC-20A filed within the 180-day window, a late filing with penalty assessment, or a complete post-incorporation compliance setup — N D Savla & Associates handles the complete filing for companies across India.

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