FORM INC 20A

Form INC-20A is the declaration of commencement of business that every newly incorporated company having share capital must file with the Registrar of Companies. In FY 2026-27, with MCA V3 portal verification and linked bank deposit checks, INC-20A is no longer a casual filing — missing it freezes the company's ability to start operations and exposes directors to penalty. This guide explains the form, timeline, documents and practical filing tips.

What Is Form INC-20A

Form INC-20A is filed under Section 10A of the Companies Act 2013, read with Rule 23A of the Companies (Incorporation) Rules 2014. It is a declaration by a director that every subscriber to the memorandum has paid the value of shares agreed to be taken at the time of incorporation, and that the company has filed the verification of its registered office through Form INC-22 where applicable.

Who Must File Form INC-20A

• Every company incorporated on or after 2 November 2018 having share capital
• Pvt Ltd companies, public companies and Section 8 companies with share capital
• Companies that have raised initial subscription capital from subscribers to the MoA
• Filing exemption is limited to companies not having share capital (rare for active business)

Timeline for Filing

Form INC-20A must be filed within 180 days from the date of incorporation. Until INC-20A is filed and accepted, the company cannot commence business operations, exercise any borrowing powers or open formal credit facilities with banks. In 2026, the MCA V3 portal validates the form against bank statements evidencing subscription money receipt, so timely deposit and reconciliation matters.

Documents and Information Required

• Declaration by a director confirming subscription money has been received
• Bank statement of the company evidencing receipt of subscription amount from each subscriber
• Subscriber-wise list reconciling MoA subscription with bank credits
• Certificate of registration with sectoral regulators (RBI, SEBI, IRDAI) where applicable
• DSC of the director signing the form
• Professional certification by a practising CA, CS or CMA

Step-by-Step Filing Process

1. Ensure each subscriber transfers the subscribed share value into the company bank account
2. Obtain a bank statement clearly showing each credit against the corresponding subscriber
3. Prepare the declaration of commencement of business
4. Log in to the MCA V3 portal and open Form INC-20A
5. Enter company and director details and attach the bank statement and supporting documents
6. Affix DSC of the authorised director and professional certification
7. Submit the form and pay the prescribed fee
8. Download the acknowledgement and approval intimation

Penalty for Non-Filing or Late Filing

Failure to file Form INC-20A within 180 days attracts a penalty of ₹50,000 on the company and ₹1,000 per day on every defaulting officer, subject to a maximum of ₹1 lakh per officer. The Registrar may also initiate suo-motu action to remove the company name from the register under Section 248(1) if it has reason to believe the company has not commenced business. These penalties have been actively enforced in 2026.

Best Practices for New Companies

1. Open the company bank account immediately after incorporation
2. Collect subscription money from each subscriber within the first 30 days
3. Reconcile bank credits against the MoA subscription before drafting INC-20A
4. File INC-20A well before the 180-day deadline — ideally within 90 days
5. Maintain a digital file with bank statement, declaration and acknowledgement

What Cannot Be Done Until INC-20A Is Filed

• Exercising borrowing powers — no formal loans can be taken
• Issuing further shares beyond the subscribed capital
• Entering into substantive commercial contracts on behalf of the company
• Filing event-based forms that require an active commencement status
• Sectoral applications and tenders that require commencement certification

Linkage With Other Post-Incorporation Compliances

INC-20A sits within a broader 60 to 180-day post-incorporation compliance window that includes opening the company bank account, depositing subscription money, obtaining PAN and TAN, filing GST registration where applicable, getting professional tax registration in relevant states, obtaining shops and establishment licence, and filing INC-22 for registered office where the registered office address declared at incorporation needs verification. Tracking these together — ideally through a written 90-day compliance checklist — keeps the new company on the right side of the MCA, the Income Tax Department and state regulators.

Conclusion

Form INC-20A is a small filing with a large consequence. Without it, your newly incorporated company cannot legally commence business, borrow money or enter substantive contracts. In FY 2026-27, treat INC-20A as a 90-day, not 180-day, priority. Collect subscription money, reconcile the bank account and file with proper professional certification. Get this right and your company starts life on a clean compliance footing.