Setindiabiz Team |

Updated : April 29, 2024

ROC Filing of INC-20A Declaration for Commencement of Business

A company can commence its business/operations only after it files a declaration in Form No INC-20A declaring its registered address and with a Bank Statement Showing deposit of capital by the shareholders. The INC 20A must be filed within 180 days of the Incorporation of the Company. Before the declaration in Form, INC-20A is filed by the company, the entire subscribed share capital as shown in the MOA of the company must be deposited in the bank account of the newly registered company.

Only after approval of the INC-20A a company can commence its business activity, what so ever. The maximum time prescribed for filing of INC-20A is 180 days from the date of incorporation of the company. Non-compliance has very serious effects on the company and it may be punishable with a fine of Rs. 50,000 and every officer in default is punishable with a fine of Rs. 1000/- per day for each day of default, however, the maximum punishment cannot be more than Rs. 1,00,000/- The company shall be closed if the declaration for Commencement of Business is not Filed.

Applicability On all Newly Incorporated Companies

The MCA has notified the new provision on 26th January 2019 which shall have retrospective effect to all companies incorporated on or after 2nd November 2018. Hence every applicable company must take steps to file INC-20A ASAP.

Can't Start Business until approval of INC-20A

A company must not enter into any transaction or business activity before approval of INC-20A. In other words, any agreement, sale, purchase without the issue of the certificate of commencement of business shall be an illegal activity.

First Deposit the Capital from Initial Promoters

The share capital amount must be deposited in the company bank A/c through Banking Channels only. However, it may be deposited in parts but the aggregate transfer should exactly match with the paid-up capital.

Check if the Registered Address if Filed to ROC

The company must check if the registered address has been reported to ROC at the time of incorporation or not and obtain Bank Statement of Company Showing transaction pertaining to capital. Now file INC-20A with DSC.

Documents for Filing of INC-20A (Declaration to Commence Business)

Bank Statstrongent Of Company Showing Capital
Digital Signature Of One Director
Professional Certification By CA/CS/CMA
File Inc-20A With Prescribed Govt Fee
Check that Registered Address is Filed
No Other Transaction in Bank Except Capital
Should not have raised any Invoice
No business activities started

FAQs

1. What is e-form INC-20A?

2.What is the time limit for filing the e-form INC-20A?

3.Why companies need to file eform INC-20A?

4.Can I file the Form INC-20A even when I miss the deadline of 180 Days?

Yes, you have the option of filing the form INC-20A even if the due date is missed, however with an additional fee to be paid based on the delay of the number of days from the due date. The below table is for reference to calculate the additional fees.

S.No	Delay in Days	Amount (INR)
1.	Delay up to 30 Days	2 Times
2.	More than 30 days and up to 60 days	4 Times
3.	More than 60 days and up to 90 days	6 Times
4.	More than 90 days and up to 180 days	10 Times
5.	More than 180 days	12 Times

5.What is the penalty of non-filing?

6. Is there any government fee payable for filing the Form INC-20A?

Yes, the general fee as prescribed under the rules are also applicable for filing the form INC-20A and the fee is based on the authorized capital of the company. Below is the list of the filing fee for the declaration for the certificate of commencement of business.

S.No	Authorised Capital	Amount (INR)
1.	Less than 1,00,000	Rs 200
2.	1,00,000 to 4,99,999	Rs 300
3.	5,00,000 to 24,99,999	Rs 400
4.	25,00,000 to 99,99,999	Rs 500
5.	1,00,00,000 or more	Rs 600

7.What are the documents required for filing the eform INC-20A?