INC-20A

The INC-20A is a crucial document that companies in India must file with the Registrar of Companies (RoC) to declare the commencement of business activities. This filing is mandatory for all companies incorporated under the Companies Act, 2013, and failure to comply can result in penalties and even the deactivation of the company’s status. This guide provides detailed insights into what INC-20A is, the significance of this form, who needs to file it, the consequences of non-compliance, and the step-by-step process of filing.

The form INC-20A is a declaration required under Section 10A of the Companies Act, 2013. Newly incorporated companies are required to file this form to confirm that they have received the paid-up share capital as stated in their Memorandum of Association and have commenced their business operations. This form must be filed within 180 days from the date of incorporation.

Filing INC-20A is not just a regulatory formality; it has significant implications for a company’s operations:

1. Legal Requirement: It is a statutory requirement for all companies incorporated after November 2, 2018. Non-compliance can lead to penalties.
2. Proof of Business Commencement: This form serves as an official declaration that the company is ready to commence its business activities.
3. Bank Account Operations: Without filing INC-20A, a company cannot engage in banking transactions beyond the initial capital.
4. Compliance with Regulatory Authorities: Filing ensures that the company is in good standing with the Ministry of Corporate Affairs (MCA) and other regulatory bodies.

The filing of INC-20A is mandatory for all companies incorporated in India after November 2, 2018. This includes:

1. Private Limited Companies: All newly incorporated private limited companies must file this form.
2. Public Limited Companies: Newly established public limited companies are also required to comply.
3. One Person Companies (OPC): Although OPCs have fewer compliance requirements, they are still required to file INC-20A.
4. Companies with Share Capital: Only companies with share capital are required to file this form. Companies without share capital are exempt.

When filing INC-20A, companies must ensure that they have the following documents ready:

1. Bank Account Statement: This statement must show the receipt of the paid-up share capital from the shareholders.
2. Certificate of Incorporation: This serves as proof that the company has been duly incorporated under the Companies Act, 2013.
3. Subscription Sheet: This document lists the shareholders and their shareholding in the company.
4. Board Resolution: A copy of the board resolution authorizing the filing of INC-20A.
5. Utility Bills: In some cases, utility bills may be required to prove the registered office address.

Filing INC-20A is a straightforward process, but it requires attention to detail to ensure compliance. Here’s a step-by-step guide:

Step 1: Prepare the Necessary Documents

Before filing, gather all the required documents, including the bank statement, certificate of incorporation, subscription sheet, and board resolution. Ensure that these documents are up to date and accurately reflect the company’s status.

Step 2: Access the MCA Portal

Visit the Ministry of Corporate Affairs (MCA) website. Log in using your credentials or create a new account if you do not have one.

Step 3: Download Form INC-20A

Navigate to the “Forms & Downloads” section and download the latest version of Form INC-20A. It’s important to use the most recent version to avoid any filing issues.

Step 4: Fill in the Details

Carefully fill out the form with accurate details. The information required includes the company’s CIN (Corporate Identification Number), the date of incorporation, and the amount of paid-up share capital. Ensure that all details match the information provided in the supporting documents.

Step 5: Attach the Required Documents

Attach the necessary documents, such as the bank statement and board resolution. The documents should be in PDF format and adhere to the size limits specified by the MCA.

Step 6: Pay the Filing Fee

Once the form is filled out and documents are attached, proceed to the payment section. The fee for filing INC-20A varies depending on the authorized share capital of the company. Payment can be made online through net banking, credit card, or other available options.

Step 7: Submit the Form

After completing the payment, submit the form online. You will receive an acknowledgment with a reference number, which can be used to track the status of your filing.

Step 8: Verification and Approval

The MCA will review the submitted form and documents. If everything is in order, the form will be approved, and you will receive a confirmation email. If there are any discrepancies, the MCA may request additional information or corrections.

Failing to file INC-20A within the stipulated time frame can lead to severe consequences for the company:

1. Monetary Penalties: The company may be fined up to INR 50,000, and every officer in default may be fined an additional INR 1,000 per day of default, up to a maximum of INR 1,00,000.
2. Deactivation of DIN: The Directors Identification Number (DIN) of the directors may be deactivated, affecting their ability to function in their official capacity.
3. Company Status Deactivation: The Registrar of Companies may also deactivate the company’s status, rendering it inactive and unable to conduct business.
4. Legal Action: In extreme cases, continued non-compliance could lead to legal action and the company being struck off the register of companies.

To avoid penalties and ensure smooth business operations, companies should take the following steps:

1. Timely Filing: Ensure that INC-20A is filed within 180 days of incorporation. Mark the deadline on your calendar and set reminders.
2. Accurate Documentation: Double-check all documents and details before filing to avoid rejections or delays.
3. Consult a Professional: If you are unsure about the filing process, consider consulting a chartered accountant or a company secretary.
4. Regular Monitoring: Keep track of all compliance requirements and deadlines through regular monitoring and updates.

Filing INC-20A might seem straightforward, but several common mistakes can lead to issues:

1. Incorrect CIN: Ensure that the Corporate Identification Number (CIN) is entered correctly.
2. Mismatched Documents: All documents must match the information provided in the form. Discrepancies can lead to rejections.
3. Delayed Filing: Missing the 180-day deadline results in penalties. Plan ahead to avoid last-minute filing.
4. Incomplete Information: Ensure that all fields in the form are filled out correctly. Incomplete information can delay the approval process.

1. What is INC-20A? INC-20A is a form that companies incorporated in India must file with the Registrar of Companies to declare the commencement of business.
2. Who needs to file INC-20A? All companies incorporated after November 2, 2018, with share capital, must file INC-20A.
3. What is the deadline for filing INC-20A? INC-20A must be filed within 180 days of the company’s incorporation.
4. What happens if a company fails to file INC-20A? The company may face penalties, deactivation of its status, and legal action.
5. Can the deadline for filing INC-20A be extended? No, the deadline is strict, and extensions are not typically granted.
6. What documents are required for filing INC-20A? Required documents include a bank statement, certificate of incorporation, subscription sheet, and board resolution.
7. How much is the fee for filing INC-20A? The fee varies based on the company’s authorized share capital and is payable online.
8. Can a company start business operations before filing INC-20A? No, a company must file INC-20A before commencing any business operations.
9. What are the consequences of filing incorrect information in INC-20A? Filing incorrect information can lead to rejections, delays, and potential penalties.
10. Is professional help required for filing INC-20A? While not mandatory, consulting a professional can help ensure accurate and timely filing.

Filing INC-20A is a critical step for newly incorporated companies in India. It not only ensures compliance with the Companies Act, 2013, but also allows the company to legally commence business operations. By following the steps outlined in this guide and avoiding common mistakes, companies can fulfill their legal obligations and focus on growing their business.