A Practical Guide to Commencement of Business Certificate (INC-20A)
A freshly incorporated company cannot legally start business, borrow money, or exercise any corporate power until INC-20A is filed — a fact that catches a surprising number of founders off guard, because the Certificate of Incorporation feels like the finish line when it is actually the starting gun. Miss the 180-day window and the company faces a flat penalty, every officer in default is personally fined per day of continuing default, and in the worst cases the Registrar can strike the company off the register altogether.
Understanding the Service
INC-20A is the statutory declaration a company must file with the Registrar of Companies (RoC) to confirm that it has legally commenced business. Introduced by the Companies (Amendment) Ordinance, 2018 and now governed by Section 10A of the Companies Act 2013 read with Rule 23A of the Companies (Incorporation) Rules 2014, it applies to every company incorporated on or after 2 November 2018 that has a share capital. The declaration must be filed within 180 days of the date of incorporation and must be accompanied by proof that every subscriber to the Memorandum of Association has paid the value of the shares they agreed to take, and that the amount has actually been received into the company's bank account.
For the full scope, current process and what PNPC includes, see the dedicated Commencement of Business Certificate (INC-20A) service page.
Is This Relevant to Your Business?
- Every company incorporated on or after 2 November 2018 with a share capital — Private Limited, Public Limited, OPC, Section 8 with share capital, and Producer Companies fall squarely within Section 10A
- Companies that have received their Certificate of Incorporation but have not yet opened a bank account or received subscriber money — this is the trigger event PNPC tracks from Day 1
- Companies planning to sign their first vendor contract, raise their first invoice, or take their first loan — none of these should happen before INC-20A is filed and the 180-day risk window is understood
- Companies in regulated sectors (NBFC, insurance intermediary, and similar) where INC-20A also requires attaching the relevant sectoral regulatory approval before it can be filed
Before You Assume You Need This
- Companies incorporated before 2 November 2018 — Section 10A applies prospectively only; older companies were never required to file this specific declaration
- Companies incorporated without share capital — for example, certain Section 8 companies limited by guarantee with no share capital are outside the scope of Section 10A, which is tied to paid-up share capital verification
- LLPs — Limited Liability Partnerships are governed by the LLP Act 2008, not the Companies Act 2013, and have no equivalent commencement-of-business declaration requirement
Quick Answers
What is INC-20A in simple terms?
It is a declaration a newly incorporated company must file with the Registrar of Companies confirming that the money its founders promised to invest as share capital has actually been paid into the company's bank account. Until this declaration is filed, the company cannot legally start business, sign binding contracts in the ordinary course, or borrow money.
Which companies are required to file INC-20A?
Every company incorporated on or after 2 November 2018 that has a share capital — this covers Private Limited Companies, Public Limited Companies, One Person Companies, Section 8 companies with share capital, and Producer Companies. Companies incorporated before that date, and companies without share capital, are outside the scope of Section 10A.
What is the exact deadline for filing INC-20A?
Within 180 days from the date of incorporation as shown on the Certificate of Incorporation. This is a hard statutory deadline under Section 10A of the Companies Act 2013 — there is no automatic extension, though the government has, on rare occasions, granted a general relaxation during exceptional circumstances such as system outages.
Getting This Right From the Start
Speak with a PNPC Chartered Accountant about your INC-20A deadline — whether you have just been incorporated or are already past the 180-day window. We will confirm exactly where you stand and what needs to happen next, in writing, before any engagement begins.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Corporate Law practice for related services, or go straight to the Commencement of Business Certificate (INC-20A) page for specifics.
Specific rates, fees, thresholds and deadlines are set by the relevant authority and change over time — this article deliberately does not quote figures that could go stale. Confirm current numbers directly with PNPC or the official source before you act.