Commencement of Business (INC-20A)
File it within 180 days, or the company may not trade.
Every company incorporated with share capital must file INC-20A declaring that each subscriber has paid the value of the shares they agreed to take. Until it is filed the company may not commence business and may not exercise any borrowing power.
The declaration has to be supported by proof that the subscription money actually reached the company's bank account. A newly incorporated company that never funded its account cannot file this, which is the usual reason it is late.
What is included
- Subscription proof reviewed against the bank statement
- INC-20A prepared and professionally certified
- Filed with the Registrar
- Acknowledgement and the challan
What we need from you
- Bank statement showing the subscription money received
- Certificate of incorporation
- Board resolution
- Director's digital signature
Questions
What happens if INC-20A is not filed?
A penalty of ₹50,000 on the company and ₹1,000 per day on every officer in default, capped at ₹1,00,000 each. The Registrar may also strike the company off on the presumption that it is not carrying on business.
Also in MCA & ROC
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Get started with Commencement of Business (INC-20A)
Tell us a little about the business and a chartered accountant will call you back. You will get a firm quote before any work begins.
- A qualified accountant on the call, not a call centre
- A firm quote before any work begins
- Your details are never sold or shared