Commencement of Business Certificate (INC-20A)

Overview

Under Section 10A of the Companies Act, 2013, a company with share capital that was incorporated after 2 November 2018 must file a declaration, Form INC-20A, before it starts business or uses its borrowing powers. The declaration confirms that every subscriber to the Memorandum has paid the value of the shares they agreed to take and that the company has verified its registered office. It must be filed within 180 days of incorporation.

Who needs it

• Private and public companies with share capital incorporated after 2 November 2018.
• Section 8 companies that have share capital.
• Founders who incorporated recently and have not yet started trading or borrowing.

Companies incorporated before that date and companies without share capital are exempt.

What Zenith does

We confirm the incorporation date and capital structure, check the bank account for subscription receipts and review the registered office evidence. Your relationship manager shares a checklist and prepares the directors' declaration, board resolution and INC-20A. Verification of the form is done only through an appropriately authorised professional, Company Secretary or Cost Accountant, who certifies the details. We then file and share the acknowledgement. Timelines depend on completeness, complexity and authority processing.

Eligibility and key rules

• The declaration must be filed within 180 days of the date of incorporation.
• All subscribers to the MOA must have paid for the shares they undertook to take.
• The registered office must be verified.
• The form is signed with the DSC of an authorised director and verified by an authorised practising professional, who carries professional responsibility.
• A company that has not filed cannot commence business or exercise borrowing powers.
• For regulated entities such as NBFCs, the regulator's registration certificate is also required.

Documents required

• Bank statement showing receipt of the subscription money.
• Evidence of the registered office address.
• Directors' declaration and board resolution.
• Certificate of incorporation.
• RBI or other regulator registration, if the company is regulated.
• DSC of an authorised director.

Process and timeline

1. Confirm the incorporation date and the 180-day deadline.
2. Check that all subscription money is in the company bank account.
3. Verify the registered office and gather proof.
4. Board passes a resolution and a director signs the declaration.
5. The authorised professional verifies and certifies INC-20A.
6. File on the MCA portal with fee based on capital and obtain the service request number.
7. Keep the acknowledgement in the statutory records.

Timelines depend on completeness, complexity and authority processing.

Government fees, penalties and due dates

• Due within 180 days of incorporation.
• The filing fee depends on the company's share capital.
• Penalty for default: ₹50,000 on the company, and ₹1,000 per day on each officer in default up to ₹1,00,000, per the public source read.
• If no declaration is filed and the Registrar has reason to believe the company is not carrying on business, the ROC may begin removal of the company name from the register.

Amounts and dates above reflect public sources read in October 2026 and change with notifications, so Zenith confirms the current figures in your quotation.

Common mistakes

• Waiting for the first sale before filing: the form is needed before commencing business.
• Letting subscribers pay their share money late or in cash outside the bank account.
• Using a registered office proof that does not match the address on record.
• Treating the authorised professional's verification as a formality.
• Missing the 180th day, which falls sooner than most founders expect.

FAQs