Applicability On all Newly Incorporated Companies
Cant Start Business until approval of INC-20A
First Deposit the Capital from Initial Promoters
Check if the Registered Address if Filed to ROC
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
Frequently Asked Questions on INC-20A
Q1: What is e-form INC-20A?
The form INC-20A is the prescribed eform through which a company has to file a declaration before commencing the business operations of the company. This form has been notified on 25th January 2019, however, is applicable to all companies which have been incorporated on or after 2nd November 2018.
Q2: What is the time limit for filing the e-form INC-20A?
The Form INC-20A must be filed immediately after incorporation of the company as the company shall not be able to start any business activity as such. However, the last date of filing the same is fixed at 180 days from the date on which the company got registered.
Q3: Why companies need to file eform INC-20A?
This is a legal requirement, as without filing a declaration for the commencement of business you can not start any business activity. Non filing not only results in a heavy penalty but it also leads to the closure of the company.
Q4: 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|
Q5: What is the penalty of non-filing?
The non-filing is punishable with a fine of Rs 1,00,000/- to be paid by the company and every officer in default which includes the director is to pay Rs. 1000 for each day of non-compliance. However, the penalty shall not be more than Rs. 1,00,000/- for directors.
Q6: 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|
Q7: What are the documents required for filing the eform INC-20A?
To file form INC-20A you need to attach a certified copy of the Bank Statement of the company where the paid-up capital has been received from the first subscribers of the MOA/Shareholders.