INC-20A: The Complete Ultimate Guide

INC-20A Commencement of Business under Companies Act, 2013

When you incorporate a new private company or public company in India, the first major legal requirement after incorporation is filing the INC-20A — Declaration for Commencement of Business.
Failure to file this one form can lead to huge late fees, penalties, company strike-off, and even disqualification of directors.

This ultimate guide covers everything you will ever need to know about Form INC-20A, including:

✅ CHAPTER 1: What is INC-20A? (Simple Definition)

INC-20A is the Declaration of Commencement of Business filed by a newly incorporated company with the Ministry of Corporate Affairs (MCA).

It is filed after incorporation but before starting any business or borrowing funds.

Official Meaning (in simple words):

INC-20A is a declaration filed by directors confirming that the company has received subscription money from shareholders and is ready to commence business.

Legal Reference:

INC-20A is mandated under Section 10A of the Companies Act, 2013.

✅ CHAPTER 2: Purpose of INC-20A (INC-20A Purpose)

MCA introduced INC-20A to:

✔ Prevent fake/dummy companies

✔ Ensure shareholders actually deposit share capital

✔ Improve compliance

✔ Increase transparency

✔ Prevent money laundering through shell companies

In summary:

The purpose of INC-20A is to ensure a company is genuine and legally eligible to start operations.

✅ CHAPTER 3: Applicability of INC-20A (INC-20A Applicability)

INC-20A must be filed by:

✔ Every company incorporated on or after 2 November 2018

✔ Both Public and Private Companies

✔ Companies having share capital

❌ INC-20A is NOT applicable to:

• Companies without share capital
• LLPs
• Section 8 (if incorporated without share capital)

INC-20A Applicability Date

Effective from 2 November 2018, when MCA notified Section 10A.

✅ CHAPTER 4: INC-20A Due Date

You must file INC-20A within 180 days (6 months) of incorporation.

Example:
If company is incorporated on 1 January 2025, due date = 30 June 2025.

✅ CHAPTER 5: Consequences of Missing the Due Date (INC-20A Penalty)

There are three levels of consequences:

 Late Filing Fees (INC-20A Late Fee / INC-20A Late Fees)

If you delay filing, MCA charges additional fees per day as per Companies (Registration Offices and Fees) Rules.

More details in the "Late Fees" chapter.

Penalty for Not Filing INC-20A (Penalty for INC-20A)

Company penalty: ₹50,000

Director penalty: ₹1,000 per day

(Up to max ₹1,00,000)

Strike-off of Company

If you fail to file INC-20A within 180 days, MCA may:

• remove your company name from the register
• start strike-off proceedings
• deactivate DINs of directors

✅ CHAPTER 6: INC-20A Fees (Filing Fees)

Filing fees depend on authorized share capital.

Filing Fees Table (INC-20A Fees)

Authorised Capital	Filing Fees
Up to ₹1,00,000	₹200
₹1,00,001 – ₹4,99,999	₹300
₹5,00,000 – ₹24,99,999	₹400
₹25,00,000 – ₹99,99,999	₹500
₹1 crore or more	₹600

Read More on: Section 188 Explained: What Every Director Should Know About this