INC-20A
Form INC-20A is a mandatory declaration that must be filed by every newly incorporated company with the Ministry of Corporate Affairs (MCA) before starting its business operations.
This ensures that:
- The company has received the subscription money from shareholders.
- The amount has been deposited into the company’s bank account.
- The company is legally ready to commence business or borrow money.
Who Needs to File INC-20A?
- All companies incorporated on or after 2nd November 2018 under the Companies Act, 2013.
- Applies to Private Limited Companies and One Person Companies (OPC).
- Does not apply to companies incorporated before 02.11.2018.
Timeline (Due Date)
- Must be filed within 180 days (6 months) from the date of incorporation.
Example: If a company is incorporated on 1st April 2025, it must file INC-20A on or before 28th September 2025.
Documents Required for INC-20A Filing
- Bank Statement of the Company showing proof of subscription money deposited by shareholders.
- Certificate of Incorporation (auto-generated at the time of registration).
- Proof of Registered Office (if not already submitted via INC-22).
- Digital Signature Certificate (DSC) of a director.
- Declaration by a Director in INC-20A.
Process of Filing INC-20A
- Open a Company Bank Account
- After incorporation, open a current account in the company’s name.
- Deposit Subscription Money
- Shareholders must deposit the amount mentioned in the MOA (Memorandum of Association).
- Prepare Declaration
- A director prepares and digitally signs INC-20A form.
- Attach Bank Proof
- Bank statement showing subscription deposit must be attached.
- File with MCA
- Upload INC-20A on MCA portal with required fees.
- Approval by ROC
- Once verified, the Registrar of Companies (ROC) approves and updates records.
Penalties for Non-Filing
If INC-20A is not filed within 180 days:
- Company Penalty: ₹50,000
- Every Officer in Default (Directors): ₹1,000 per day (maximum ₹1,00,000)
- Serious Consequence: ROC can initiate strike-off proceedings, and the company may be treated as if it never existed.
Why INC-20A is Important
- Without it, the company cannot start business operations.
- Company cannot borrow money legally.
- Banks, investors, and government authorities require this filing.
- Ensures that the company is active and compliant.
No. The company must file INC-20A and get ROC approval before starting operations.
No. This is applicable only to companies (Pvt Ltd & OPC).
No. There is no extension. Delay attracts penalties.
You cannot file INC-20A without bank proof. The company may face penalties or strike-off.
Yes. A practicing CA/CS/CMA must certify the form before submission.