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Commencement (INC 20A) Filing

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Commencement (INC 20A) Filing

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exclusive of MCA Fees

Starting from₹1199

Government fees and third-party charges apply where mentioned.

Certificate of Commencement of Business

A company incorporated with share capital after 2 November 2018 must complete the declaration of Commencement of Business before beginning operations.

The Certificate of Commencement of Business confirms that the company has fulfilled the legal conditions required to start business and access borrowing facilities.

LegallensIndia assists with company registration, the Commencement of Business filing, and ongoing statutory compliance.

What Is Commencement of Business?

Commencement of Business is a formal declaration made by the company's directors within 180 days of incorporation.

The declaration confirms that the subscribers to the Memorandum of Association have paid the agreed value of their shares and includes verification of the registered-office address.

The declaration and proof that subscription money was received must be filed with the Registrar of Companies through Form 20A before the company can legally begin operations.

Professional Verification

Form 20A must be verified by an authorised Chartered Accountant, Company Secretary, or Cost Accountant. Errors or discrepancies in the submitted form may make the certifying professional accountable and may attract penalties under the Companies Act, 2013.

Who Must File the Declaration?

  • Companies incorporated after 2 November 2018.
  • Every company operating with a share-capital structure, irrespective of its business type.
  • Private Limited Companies with share capital.
  • Public Limited Companies with share capital.
  • Section 8 Companies having a share-capital structure.

These companies must obtain the Commencement of Business Certificate within 180 days of incorporation and before commencing operations.

Significance of the Certificate

Operational Readiness

The certificate confirms that the company has completed the legal prerequisites and is prepared to conduct business activities.

Legitimacy and Accountability

It assures stakeholders, investors, and regulatory authorities that the company is operating in accordance with the applicable requirements.

Due Date

A company with share capital must obtain the Commencement of Business Certificate within 180 days from its incorporation. Timely filing is necessary to avoid penalties and possible disqualification.

Form 20A Filing Exemptions

  • Companies incorporated before 2 November 2018: Companies formed before this date are exempt from the filing.
  • Companies without share capital: A business without a share-capital structure does not need to submit Form 20A.

Consequences of Non-Compliance

ConsequenceDetails
Business restrictionThe company cannot commence business or use borrowing facilities
Company penalty₹50,000
Director penalty₹1,000 per day for each defaulting director, up to ₹1,00,000
Potential strike-offThe ROC may initiate removal of the company's name when no declaration is filed and there are reasonable grounds to believe it is not carrying on business

Documents Required for Form 20A

  • Share-subscription payment proof: A bank statement showing receipt of subscription money from the subscribers.
  • Registered-office verification: Evidence confirming the company's registered-office address.
  • RBI registration certificate: Required where the company is an NBFC or is regulated by another financial authority.
  • Directors' declaration: Confirmation that subscribers have paid the agreed share value.
  • Board Resolution: A resolution supporting the directors' declaration and filing.

How to Obtain the Certificate

Step 1: Access the MCA Portal

Log in to the Ministry of Corporate Affairs portal using the company's credentials.

Step 2: Download Form 20A

Open MCA Services, select Company Forms Download, and choose Form 20A for the Declaration of Commencement of Business.

Step 3: Complete the Form

Enter the required company information, including the Corporate Identification Number and other relevant details.

Step 4: Attach the Documents

Attach proof of share-subscription payment, registered-office verification, and any applicable document such as the RBI registration certificate.

Step 5: Affix the Director's DSC

The authorised director must sign the form using a Digital Signature Certificate.

Step 6: Obtain Professional Certification

A Chartered Accountant, Company Secretary, or Cost Accountant must verify and certify the form.

Step 7: Submit the Form and Pay the Fee

Upload Form 20A and its attachments through the MCA portal and pay the prescribed fee based on the company's share capital.

Step 8: Receive the Acknowledgement

After submission, the system generates a Service Request Number. Following verification, an acknowledgement email confirms successful filing.

Why Choose LegallensIndia?

Expert Guidance

Professionals familiar with MCA requirements provide guidance throughout the filing process.

End-to-End Support

Support covers document preparation, form submission, professional certification, and fee payment.

Timely Compliance

Prompt filing helps the company meet the 180-day deadline and avoid penalties or compliance issues.

Transparent Process

Clear updates keep the company informed throughout each stage of the filing.

Comprehensive Compliance Solutions

Services extend beyond the Commencement Certificate to annual filings, GST compliance, and other MCA requirements.

LegallensIndia manages the compliance process so the company can focus on growing its business..