Commencement of Business (INC-20A)
Your trusted partner for post-incorporation compliance — ensuring timely commencement approval and regulatory readiness under MCA framework.
Overview
After incorporation, every company having a share capital is mandated by the Companies Act, 2013 to file a 'Declaration for Commencement of Business' before starting any operations or exercising any borrowing powers. This compliance is fulfilled by filing Form INC-20A with the Registrar of Companies (RoC).
The primary purpose of this filing is to confirm that every subscriber to the Memorandum of Association (MoA) has paid the value of the shares agreed to be taken by them. This must be filed within 180 days of incorporation. Failure to comply can lead to heavy penalties for the company and its directors, and in extreme cases, the RoC may initiate the strike-off process for the company.
Key Benefits
Operational Legitimacy
Gain the legal right to officially start business operations and enter into commercial contracts.
Borrowing Powers
Legalize your company's ability to raise funds, take loans, or borrow money for business needs.
Banking Readiness
Most banks require the INC-20A acknowledgment to fully activate the corporate bank account for outbound transactions.
Penalty Avoidance
Prevent the ₹50,000 company penalty and the ₹1,000 per day fine imposed on defaulting directors.
Strike-off Protection
Avoid the risk of the Registrar of Companies (RoC) removing your company's name from the official register.
Clean Compliance Track
Maintain a flawless MCA record, which is essential for future due diligence, funding, or acquisitions.
Eligibility Requirements
Ensure your business meets these basic criteria for a smooth registration process.
Expert Tip
Having all directors present in India is not mandatory, but at least one director must be a resident of India (stayed in India for 182+ days).
Documents Required
Keep these documents ready to fast-track your application.
Corporate Proofs
- Certificate of Incorporation (COI)
- Memorandum & Articles of Association
- Registered Office Address Details
Financial Proofs
- Bank Statement showing Share Capital deposit
- Proof of payment for MOA Stamp Duty
- Board Resolution for Commencement
Signatory Records
- PAN & Aadhaar of the Director
- Digital Signature (DSC) of a Director
- Professional Certification (CA/CS/CWA)
Registration Process
Our seamless digital-first approach ensures completion in the fastest possible time.
Capital Infusion
Ensuring all subscribers deposit the agreed-upon share capital into the company's bank account.
Proof Collection
Gathering the certified bank statement as proof of the share capital receipt.
Board Resolution
Drafting and passing a Board Resolution to approve the filing of the declaration for commencement.
Form Preparation
Drafting the e-Form INC-20A with the required data and attachments as per MCA guidelines.
Professional Certification
Getting the form certified by a practicing Chartered Accountant (CA) or Company Secretary (CS).
MCA Filing
Submitting the form on the MCA portal and paying the applicable government filing fees.
Approval Monitoring
Tracking the approval status on the MCA portal until the 'Certificate of Commencement' is acknowledged.
Operational Briefing
Advising the directors on the next set of annual compliances and statutory register maintenance.
Mandatory Compliance
Staying compliant is crucial for your company's good standing. Non-compliance may lead to penalties and director disqualification.
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FAQs
Common questions about Commencement of Business (INC-20A)
Legalize Your Business Operations
Obtain your Commencement of Business approval quickly and accurately with the corporate experts at Bizmint LLP.