We must explain to you how all seds this mistakens idea denouncing pleasures and praising account.
When a private limited company is registered in India, it doesn’t automatically mean it can start doing business right away. Before starting any business transactions, a company that has been incorporated after November 2, 2018, is required to file Form INC-20A, also called Business Commencement Filing. This form is a declaration that the company’s shareholders have paid the initial subscribed capital as mentioned in the Memorandum of Association (MOA). It is submitted to the Ministry of Corporate Affairs (MCA).
The INC-20A form is a statutory requirement under the Companies Act, 2013, and skipping this filing can result in penalties, legal action, and even the company being struck off by the Registrar of Companies (ROC). So, even though your business might be legally formed, you can’t start operations until this filing is done.
At CallmyCA, we simplify this legal process for you, making sure your company stays compliant with Indian laws and starts business smoothly without facing any penalties.
Filing ensures you are compliant with Section 10A of the Companies Act, 2013, and protects your company from penalties or legal notices.
If you fail to file INC-20A, your company may face fines up to ₹50,000, and directors can be fined ₹1,000 per day. Filing on time avoids this hassle.
After filing, your company is officially allowed to commence business activities such as sales, purchasing, or signing contracts.
Most banks demand the INC-20A approval before allowing a company to fully operate its current account.
A company that has completed all initial legal formalities is seen as serious and trustworthy by banks, investors, and customers.
Investors and venture capitalists look for legally active companies. Filing INC-20A increases your eligibility for funding.
ROC has the power to strike off inactive companies. INC-20A proves you are active and prevents your company from being removed.
A compliant company has higher chances of getting government approvals, tenders, or vendor contracts.
Filing this form helps set the tone for future ROC filings and makes future compliance smoother and quicker.
Yes, it is mandatory for all companies incorporated after 2nd November 2018 with share capital. LLPs or companies without share capital are not required to file INC-20A.
If you delay filing, the company will not be allowed to start business legally. Also, you will face financial penalties and might receive notices from the MCA or ROC.
The form must be signed by a director of the company and must be certified by a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA) in practice.
INC-20A must be filed within 180 days (6 months) from the date of company incorporation.
Yes, it can be filed with a late fee and penalty, but this could result in compliance issues. It is strongly advised to file it on time.
While you can initiate the process, most banks will not activate your company’s current account for transactions until you’ve filed INC-20A.
The government fee depends on the company's authorized capital. Typically, it ranges from Rs. 200 to Rs. 600, excluding professional charges.
No, INC-20A is a one-time filing. Once done, you don’t need to file it again, even if the share capital changes later.
No, proof of deposit of share capital (like a bank statement) is mandatory to show that the capital was received.
Yes, our team of professionals at CallmyCA will handle everything—from document collection to filing and approval—so you can stay relaxed and compliant without lifting a finger.
Call-My-CA - Copyright 2025. All Rights Reserved || Design & Developed by CWL Technology Pvt. Ltd.
