Commencement of Business (INC-20A Filing)

What is E Form INC 20A?

E Form INC 20A is a statutory declaration that every company incorporated in India on or after 2nd November 2018 must file with the Ministry of Corporate Affairs (MCA) under Section 10A of the Companies Act, 2013, read with the Companies (Incorporation) Rules, 2014.

This form is also known as the Declaration for Commencement of Business, and it confirms that the company’s subscribers have paid the total value of shares as stated in the Memorandum of Association (MOA). The form must be filed within 180 days from the date of incorporation using the MCA portal. 

Filing E Form INC 20A is mandatory before a company can:

• Commence any business activity, or
• Exercise any borrowing powers under the Companies Act.

If the company fails to file Form INC 20A within the prescribed time, it will not be permitted to start its operations, and its Company Identification Number (CIN) may be marked inactive. The Registrar of Companies (ROC) can also initiate action to strike off the company’s name from the register.

When is E Form INC 20A Required?

E Form INC 20A is required to be filed after the incorporation of a Private Limited Company in India. Once the Certificate of Incorporation is issued by the Ministry of Corporate Affairs, the company must file this form within 180 days from the date of incorporation.

This filing confirms that the company has received its subscribed share capital from the shareholders and is legally eligible to commence business operations. If you are planning to start a business but have not yet incorporated your company, you must first complete Private Limited Company Registration before filing E Form INC 20A.

Who is Required to File E Form INC 20A?

E Form INC 20A must be filed by companies incorporated on or after 2nd November 2018 that have share capital. This requirement applies mainly to Private Limited Companies and Public Limited Companies registered under the Companies Act, 2013.

Penalties for Non-Filing of E Form INC 20A

The Ministry of Corporate Affairs has imposed strict penalties for companies that do not file this declaration:

• The company is liable to pay a penalty of ₹50,000.
• Each officer in default (such as directors) is liable to pay a penalty of ₹1,000 per day during which the default continues, up to a maximum of ₹1,00,000.
• The company will not be allowed to commence business or borrow funds until the filing is complete.

Limited Liability Partnerships (LLPs), partnership firms, and companies incorporated without share capital are not required to file this form. Filing is mandatory only once, immediately after incorporation, before starting any business activity.

Why is Filing E Form INC 20A is important?

Filing E Form INC 20A is the first mandatory compliance after Private Limited Company registration. It acts as an official confirmation that the company is ready to begin its operations in India.

This filing ensures that the company is legally authorized to start operations, open a business bank account, raise capital, or undertake any commercial activity. It also provides the MCA with proof that the initial share capital has been duly received from shareholders.

Why Choose Tax Intelligence for E Form INC 20A Filing?

Non-compliance with this requirement can lead to severe financial penalties and may affect the company’s credibility with banks, investors, and regulatory bodies. Timely filing through professional assistance ensures your company remains fully compliant with Indian corporate law.

Our expert deliverables are Pvt Ltd Company Registration and Annual Compliances for Pvt Ltd.

How Tax Intelligence helps in INC-20A Filing?

• We begin with a consultation to confirm your company’s eligibility and filing requirement for E Form INC 20A.
• All required documents and proofs are collected and verified for accuracy before filing.
• Our experts prepare Form INC 20A strictly as per the latest MCA rules and validation checks.
• The form is digitally signed using the director’s DSC and filed online on the MCA portal.
• We actively track the filing status until the Registrar of Companies approves the submission.
• Once approved, you receive the official Certificate of Commencement of Business from ROC.
• Our team assists you with ongoing company compliances and future MCA filings.
• A dedicated compliance expert provides continuous updates and personalized support.