INC-20A: The Post-Incorporation Form Most Founders Have Never Heard OfS

You just got your Certificate of Incorporation. You’re celebrating. But there’s a mandatory MCA form sitting on a 180-day countdown clock — and most new founders don’t even know it exists. It’s called INC-20A, the Declaration for Commencement of Business, and skipping it can freeze your company’s operations, trigger a ₹50,000 penalty, and get your company struck off the register entirely.

This is one of the most overlooked post-incorporation compliance steps in India. Let’s fix that right now.

What You’ll Learn

• What INC-20A is and why the MCA introduced it in 2018
• Which companies must file it, who is exempt, and the exact 180-day deadline
• The documents you need, the step-by-step filing process on MCA21, and the penalties for missing the deadline
• The one pre-condition most founders forget before they can even file

What Is INC-20A and Why Does It Exist?

INC-20A — officially the Declaration for Commencement of Business — was introduced through the Companies (Amendment) Ordinance, 2018, which inserted a new Section 10A into the Companies Act, 2013. It came into effect on 2nd November 2018.

Before this change, a company could technically open its doors, sign contracts, and borrow money the day after getting its CIN (Corporate Identity Number). That loophole led to thousands of shell companies being registered with no real capital ever deposited.

Here’s the thing. The MCA’s solution was elegant: make every new company formally declare, before doing anything, that its subscribers have actually paid up their share capital into the company’s bank account. That declaration is Form INC-20A.

Think of it as your company’s “permission to operate” stamp — without it, your incorporation certificate is essentially incomplete from a business-operations standpoint.

This form is filed under Rule 23A of the Companies (Incorporation) Rules, 2014, and needs to be certified by a practising Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant before submission on the MCA21 portal.

Who Must File INC-20A — and Who Gets a Pass?

Not every registered entity needs to file this form. Here’s a clear breakdown so you know exactly where you stand.

Companies Required to File

• Any company incorporated on or after 2nd November 2018 with a share capital — this includes Private Limited Companies, Public Limited Companies, and One Person Companies (OPCs)
• Companies that need regulatory approvals from sectoral bodies like RBI, SEBI, or IRDAI must also attach proof of that approval along with INC-20A

Companies Exempt from Filing

• Companies incorporated before 2nd November 2018
• Companies incorporated without share capital (such as Section 8 companies — non-profits)
• LLPs (Limited Liability Partnerships) and Partnership Firms — these have separate governance structures and this form does not apply to them

What most founders miss: if you registered your startup as a Private Limited Company in, say, Bengaluru or Delhi after November 2018 — which accounts for the vast majority of new incorporations today — you are legally required to file INC-20A before you send your first invoice or sign your first client contract.

The One Thing You Must Do Before Filing INC-20A

Let’s break this down, because this is the step that trips up most founders. Before you can even open the INC-20A form on the MCA21 portal, you must complete one prerequisite: deposit the subscription money into your company’s bank account.

When you incorporated your company, each founder (subscriber) agreed in the Memorandum of Association (MOA) to take a certain number of shares at a specified value. The entire purpose of INC-20A is to confirm that all of that agreed share capital has actually been transferred into the company’s official current account.

For example, if your company’s paid-up capital is ₹1,00,000, each subscriber must have deposited their proportionate share into the company bank account before the form is filed.

A quick example: suppose two co-founders each hold 50% of a company incorporated with ₹1,00,000 paid-up capital. Each one must deposit ₹50,000 into the company’s current account. Only after both transfers appear on the bank statement can you attach that statement to INC-20A and certify it.

This is why opening the company’s current account immediately after incorporation — not weeks later — is so critical. Don’t wait for your accountant to remind you.

Need help with the full incorporation and post-incorporation compliance checklist? The Lawizer business legal services page covers everything from SPICe+ filing to post-registration steps like INC-20A, GST registration, and MSME enrolment.

Documents Required for INC-20A Filing

Filing INC-20A on the MCA21 Version 3 portal is straightforward once you have all your documents in order. Here’s everything you’ll need:

• Company Bank Statement — showing all credit entries, specifically the receipt of subscription money from each shareholder. This is the most critical document.
• Photographs of the Registered Office — one showing the external building and one showing the interior of the office, with at least one Director or KMP (Key Managerial Personnel) visible in the photo.
• Board Resolution — authorising a specific director to file the INC-20A form on behalf of the company.
• Proof of regulatory approval — required only if your company’s business is regulated by RBI, SEBI, IRDAI, or another sectoral body.
• Digital Signature Certificate (DSC) — of the director who will be signing and submitting the form on the MCA21 portal.

The form itself must be certified by a practising CA, CS, or Cost Accountant before it’s uploaded. Once submitted, the MCA typically processes it and issues acknowledgement. There’s no separate “certificate” issued — successful filing and its SRN (Service Request Number) confirmation is your proof of compliance.

The 180-Day Deadline and What Happens If You Miss It

The deadline is firm: INC-20A must be filed within 180 days from the date of incorporation. So if your company was incorporated on 1st January 2025, the last date to file INC-20A is 30th June 2025.

The MCA’s e-filing portal accepts INC-20A filings throughout this window, and it’s strongly advisable to file well before the last 30 days.

The short answer on penalties: they’re steep and they escalate. Here’s exactly what non-compliance triggers under Section 10A of the Companies Act, 2013:

• Penalty on the company: ₹50,000 (one-time flat penalty)
• Penalty on every officer in default (each director who was responsible): ₹1,000 per day for every day the default continues, capped at ₹1,00,000 per officer
• Company strike-off: If the Registrar of Companies (RoC) has reasonable cause to believe the company is inactive — no bank account, no assets, no business — it can initiate action to remove the company’s name from the Register of Companies entirely

These aren’t theoretical. The MCA has actively penalised companies for non-compliance — in one documented case, the RoC Hyderabad imposed a total penalty of ₹2.5 lakh on a company and its directors for failing to file INC-20A.

Directors must pay penalties from their personal income, not company funds. That’s a personal financial hit that no early-stage founder should have to absorb for a form that takes a few days to file correctly.

If your company has already missed the deadline, there’s still a path forward. Late filing is accepted on the MCA portal with additional fees, and in some cases, founders can file a condonation application explaining the reasons for delay. But do not wait. Each additional day adds ₹1,000 to every director’s personal liability.

Step-by-Step: How to File INC-20A on MCA21

Here’s the complete process, simplified for founders who want to understand what their CA or Lawizer’s team is doing on their behalf:

• Step 1 — Open the Company’s Bank Account: Do this immediately after incorporation. Deposit the subscription amounts from all shareholders as per the MOA.
• Step 2 — Collect Documents: Gather the bank statement, registered office photographs, board resolution, and director DSC.
• Step 3 — Download the Form: Log into the MCA21 Version 3 portal using the company’s CIN and director credentials. Access the INC-20A e-form.
• Step 4 — Fill and Certify: Complete all mandatory fields — CIN, registered office address, and the declaration. Have a practising CA, CS, or Cost Accountant digitally certify the form.
• Step 5 — Attach and Upload: Attach all supporting documents and upload the certified form on the MCA21 portal.
• Step 6 — Pay Fees and Get SRN: Pay the prescribed filing fee online. The portal generates an SRN (Service Request Number) as proof of submission. Save this.

Once filed successfully, your company is legally authorised to commence business operations, exercise borrowing powers, and enter into contracts. Until then — even if you’ve been operating informally — you are technically in default under the Companies Act, 2013.

Lawizer’s compliance experts handle this entire process end-to-end, so you don’t have to track down a CA and navigate MCA21 on your own.

INC-20A vs SPICe+: Understanding the Difference

A lot of founders confuse INC-20A with SPICe+. They’re entirely different. SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the form you file to incorporate your company — it’s the form through which MCA assigns your CIN and issues your Certificate of Incorporation. INC-20A is the form you file after incorporation, to declare that business can now commence.

Think of it this way: SPICe+ is the birth certificate of your company. INC-20A is the clearance certificate that says your company is funded, operational, and ready to engage with the world. You need both.

One without the other leaves your company legally incomplete for business purposes. If you’re also planning to register for MSME Udyam registration or GST, those processes can run in parallel with INC-20A — but don’t start billing clients until INC-20A is filed and confirmed.

Frequently Asked Questions

Q: Is INC-20A mandatory for all private limited companies in India?

A: Yes, INC-20A is mandatory for every company incorporated in India on or after 2nd November 2018 that has a share capital. This includes Private Limited Companies, Public Limited Companies, and One Person Companies (OPCs). Companies incorporated before that date, companies without share capital (like Section 8 non-profits), LLPs, and partnership firms are not required to file this form.

Q: What is the deadline to file INC-20A after company incorporation?

A: INC-20A must be filed within 180 days from the date of incorporation of the company. For example, if your company was incorporated on 1st January 2025, the deadline to file INC-20A is 30th June 2025. Missing this deadline attracts a ₹50,000 penalty on the company and ₹1,000 per day on each defaulting director, up to a maximum of ₹1,00,000 per officer.

Q: Can my company start business before filing INC-20A?

A: No. Under Section 10A of the Companies Act, 2013, a company cannot commence any business activity or exercise any borrowing powers until INC-20A has been filed with the Registrar of Companies (RoC). Operating without filing INC-20A makes the company and its directors liable to penalties, and the Registrar can initiate proceedings to strike off the company’s name from the register.

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

A: To file INC-20A, you’ll need the company’s bank statement showing receipt of subscription money from all shareholders, photographs of the registered office (exterior and interior with a director or KMP visible), a board resolution authorising the filing, and the Director’s Digital Signature Certificate (DSC). The form must be certified by a practising Chartered Accountant, Company Secretary, or Cost Accountant before submission on the MCA21 portal.

Q: What happens if INC-20A is not filed within 180 days?

A: If INC-20A is not filed within 180 days of incorporation, the company faces a flat penalty of ₹50,000. Each director in default is additionally liable to pay ₹1,000 per day of continued non-compliance, up to ₹1,00,000 per director — and this penalty must be paid from personal funds, not company accounts. In serious cases, the Registrar of Companies can also initiate action to strike off the company’s name from the Register of Companies entirely.

Q: Who certifies the INC-20A form before filing?

A: Form INC-20A must be verified and certified by a practising professional — either a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant — before it is uploaded to the MCA21 portal. Directors cannot self-certify this form. The certifying professional confirms that the information provided, including the proof of share capital receipt, is accurate and complete.

Q: Does INC-20A need to be filed every year?

A: No, INC-20A is a one-time filing. It is required only once, immediately after incorporation and before the company commences business. It is not an annual compliance requirement. However, companies must continue to file their annual returns, financial statements, and other periodic MCA forms as required under the Companies Act, 2013.