Can a company sign contracts before filing INC-20A?

Section 10A prohibits commencing business or exercising borrowing powers before filing. Revenue-generating contracts or customer agreements should wait until INC-20A is filed.

Is INC-20A required for companies incorporated before November 2018?

No. Section 10A applies only to companies incorporated on or after 2 November 2018. Earlier companies are exempt from the INC-20A requirement.

Commencement of Business Certificate — INC-20A

Q: What is the purpose of the Commencement of Business Certificate?

INC-20A ensures that newly incorporated companies are genuinely funded before commencing business, preventing shell company abuse and protecting creditors.

Q: What documents are required to file Form INC-20A?

The mandatory attachment is a bank statement showing receipt of subscription money from all MOA subscribers. Registered office proof may also be required.

Q: What happens if a company misses the 180-day deadline?

Late filing attracts ₹100 per day in additional fees. The ROC can initiate strike-off proceedings under Section 10A(2) for non-filing companies.

Complete Guide to Filing Form INC-20A Under Section 10A of the Companies Act, 2013 Before Starting Business Operations

Every company incorporated on or after 2 November 2018 that has share capital is required to obtain a Commencement of Business Certificate by filing Form INC-20A with the Registrar of Companies (ROC) within 180 days of incorporation, before commencing any business or exercising any borrowing powers. This requirement was introduced under Section 10A of the Companies Act, 2013 to ensure that newly incorporated companies actually receive their subscribed share capital before starting operations.

Without the INC-20A filing, a company cannot legally commence business, enter into contracts, raise debt, or exercise borrowing powers. Our services cover the complete INC-20A compliance process — from verifying receipt of paid-up share capital and opening a bank account to preparing the declaration and filing on the MCA21 portal within the prescribed deadline.

Our INC-20A Filing Services

Bank Account Verification

Verification that the paid-up share capital subscribed by the initial subscribers to the Memorandum of Association has been deposited in the company's bank account — a mandatory prerequisite for INC-20A filing.

INC-20A Declaration Preparation

Preparation of the director's declaration confirming receipt of subscription amount, as required under Section 10A — to be filed by a director of the company using their DSC on MCA21.

MCA21 Portal Filing

End-to-end filing of Form INC-20A on the MCA21 portal with bank statement as mandatory attachment, within 180 days of the date of incorporation of the company.

Post-Incorporation Checklist

Comprehensive post-incorporation compliance review — covering INC-20A, PAN, TAN, GST registration, Shops and Establishments registration, and first board meeting requirements.

Late Filing & Penalty Guidance

Guidance on filing INC-20A after the 180-day window, computation of applicable late fees, and advice on regularising the company's status where the deadline has been missed.

Strike-Off Risk Assessment

Assessment of strike-off risk for companies that have failed to file INC-20A and guidance on filing status rectification before the ROC initiates action under Section 10A(2).

Key Facts About INC-20A Filing

INC-20A must be filed within 180 days of the date of incorporation of the company
The form requires a declaration that the subscription amount has been received from subscribers and deposited in the company's bank account
A company cannot commence business or exercise borrowing powers until INC-20A is filed and accepted by the ROC
Late filing of INC-20A attracts an additional fee of ₹100 per day — with no upper cap
Failure to file INC-20A within 180 days is a ground for the ROC to strike off the company under Section 10A(2)
INC-20A is applicable only to companies incorporated on or after 2 November 2018 — it does not apply to companies incorporated before that date
INC-20A is not applicable to companies without share capital — such as Section 8 (not-for-profit) companies limited by guarantee

Frequently Asked Questions

What is the purpose of the Commencement of Business Certificate?

The Commencement of Business Certificate was introduced to prevent the incorporation of shell companies where subscribers register a company but never actually fund it. By requiring proof that the subscribed share capital has been received before business commences, Section 10A ensures that newly incorporated companies are genuinely operational and funded. The certificate also protects creditors by confirming that the company has real capital before it can incur liabilities or borrow money.

What documents are required to file Form INC-20A?

The mandatory attachment to Form INC-20A is a bank statement of the company showing receipt of the subscription money from the subscribers to the MOA. The bank statement must clearly show credits matching the subscription amounts for each subscriber. Additionally, if the company's registered office was not verified at the time of incorporation, proof of registered office address (utility bill/NOC) may also be required to be filed along with INC-20A.

Can a company sign contracts or hire employees before filing INC-20A?

Section 10A specifically prohibits a company from commencing business or exercising borrowing powers before INC-20A is filed. While the provision targets commercial operations and borrowing, companies in a pre-commencement phase are advised to avoid entering into contracts, engaging customers, or creating significant liabilities before the INC-20A is filed. Hiring employees and setting up internal infrastructure may be permissible in a strictly preparatory sense, but any revenue-generating activity or contract with customers should wait.

What happens if a company misses the 180-day deadline for INC-20A?

Missing the 180-day deadline does not make filing impossible — the company can still file INC-20A with additional fees of ₹100 per day from the expiry of the 180-day window. However, the ROC has the power to initiate strike-off proceedings under Section 10A(2) against companies that fail to file. A notice of strike-off is issued to the company, and if the company does not respond by filing INC-20A, it can be removed from the register. Companies that have received a strike-off notice should file INC-20A immediately.

Is INC-20A required if the company was incorporated before November 2018?

No. The requirement under Section 10A applies only to companies incorporated on or after 2 November 2018 — the date on which the relevant Companies (Amendment) Ordinance came into effect. Companies incorporated before that date are not required to file INC-20A, even if they have not yet commenced business. However, pre-November 2018 companies that commenced business without adequate capital may have other compliance obligations to address.

File Your INC-20A — Before You Start Business

Expert assistance with Commencement of Business Certificate filing for newly incorporated companies.