Form INC-20A Filing (2026): What Happens If You Start a Business Without It?

Priya incorporated her edtech startup in Delhi in March 2025. Got the Certificate of Incorporation, printed it, framed it, and posted it on LinkedIn. Then she hired three people, signed her first school contract, and started collecting fees from students.

Nobody told her about Form INC-20A filing. Six months later, her company secretary flagged it. Her company had technically been operating without legal authorisation since day one. Every contract she signed, every rupee she collected, every payment she made from the company account was done without completing the one compliance step that actually allows a company to commence business.

Most founders have never heard of this form. And that is exactly why so many companies end up in violation without even knowing it. This guide explains what Form INC-20A is, why it exists, what the deadline is, what happens if you miss it, and how to fix the situation if you already have.

LegalRaasta helps newly incorporated companies complete the Form INC-20A filing on time, along with all post-incorporation compliance requirements, so you are legally ready to operate from day one.

What Exactly is Form INC-20A?

Form INC-20A is a Declaration of Commencement of Business. It is a one-time filing that every company incorporated in India on or after 2nd November 2018 must complete before it starts any business activity or uses any share capital. It was introduced through an amendment to the Companies Act, 2013 under Section 10A. The idea behind it was straightforward. The government wanted to ensure that every company that raises share capital from its promoters actually deposits that money in the company bank account before starting operations. Too many shell companies were being incorporated with no real money behind them.

Form INC-20A filing is essentially the company’s directors declaring to the Registrar of Companies that the subscribers to the Memorandum of Association have paid their share capital and that the funds are held in the company’s bank account. That is the core of it. Simple declaration. One-time filing. But skipping it has consequences that are anything but simple.

Who Needs to File Form INC-20A?

Every Private Limited Company, Public Limited Company, and OPC incorporated in India on or after 2nd November 2018 must complete Form INC-20A filing before commencing business.

You do NOT need to file Form INC-20A if:

• Your company was incorporated before 2nd November 2018
• Your company does not have share capital (Section 8 companies registered for charitable purposes are exempt)

For everyone else, this is mandatory. No exceptions based on turnover, size, sector, or whether you have started actual operations or not.

What is the Deadline for Form INC-20A Filing?

180 days from the date of incorporation shown on your Certificate of Incorporation. That is it. Six months from the day your company came into legal existence. Miss this window, and the late fees and penalty provisions kick in automatically. The 180 days is a hard deadline. There is no grace period built in after it. No automatic extension. If you are at day 175 and realise you have not filed, you need to move fast.

Documents Required for Form INC-20A Filing

The documentation is genuinely straightforward. This is not a complex multi-document filing.

The bank statement is the most important document. It must clearly show:

• The company name on the account
• Deposits from each subscriber matching the amount of their share capital
• The account was opened in the company’s name (not the director’s personal account)

If subscribers have not yet deposited their share capital, you cannot file Form INC-20A. The declaration specifically states that the money has been received. Filing it without the deposits in the account is fraud.

Step-by-Step Form INC-20A Filing Process

The entire process runs on the MCA21 portal at mca.gov.in. No physical documents need to be submitted anywhere.

Step 1: Collect the company bank statement

Get a bank statement or certificate from your banker confirming the receipt of share capital from all subscribers to the Memorandum of Association. The statement must cover the date of each deposit.

Step 2: Log in to the MCA21 portal

Use the company’s registered credentials. Go to the e-filing section and find Form INC-20A under the list of forms.

Step 3: Fill in the form

The form itself asks for basic company details like CIN, company name, and incorporation date. Then it asks for confirmation that subscribers have paid share capital and requests the bank account details where the money was received.

Step 4: Attach the bank statement

Upload the bank statement or banker’s certificate in PDF format. Make sure it is clear and shows the exact amounts received from each subscriber.

Step 5: Director signs with DSC

The form must be signed digitally by one of the company’s directors using their valid DSC. If the DSC has expired, get it renewed before attempting to file.

Step 6: Pay the government fee and submit

Pay the applicable fee through the MCA payment gateway. After submission, an SRN is generated. Save it. Track the filing status using this number.

Step 7: Download the acknowledgement

Once the ROC processes the form, download the approval acknowledgement and keep it with your company’s statutory documents.

Government Fees for Form INC-20A Filing

These fees apply when you file within the 180-day deadline. Late filing attracts additional fees on top of these.

Late Filing Fees for Form INC-20A

A company with Rs 1 lakh share capital that files 90 days late pays Rs 200 normal fee plus Rs 1,200 in additional fees. Miss the 180-day window after the original deadline, and it goes to 12 times the normal fee plus the original amount.

What Actually Happens If You Skip Form INC-20A Filing?

This is where things get serious. Not filing Form INC-20A is not just a fee issue.

Section 10A(2) of the Companies Act, 2013 says:

If a company does not file the declaration within 180 days of incorporation and the ROC has reasonable cause to believe it is not carrying on any business, the ROC can initiate action to remove the company’s name from the register of companies.

In plain language, your company can be struck off.

Beyond strike-off risk, every director of the company is liable for a penalty of Rs 50,000 under Section 10A. The company itself faces a penalty of Rs 50,000. These are separate. Both apply.

What else goes wrong without Form INC-20A:

• You cannot legally commence any business operations
• You cannot borrow money or take loans in the company’s name
• You cannot spend the subscribed share capital sitting in the company account
• Any contracts signed without this filing are technically entered into before the company was authorised to operate
• During due diligence for funding or acquisition, this gap will surface and can kill or delay a deal
• Your annual compliance filings will show a gap that the ROC can question

The Pune founder in the introduction had signed client contracts, collected revenue, and paid employees all before completing this filing. Everything she did was legally risky because the company was not authorised to operate.

What If You Have Already Missed the Deadline?

File immediately. Today if possible.

The MCA portal accepts late filings of Form INC-20A with the additional fees listed above. As long as the ROC has not already initiated strike-off proceedings against your company, late filing is possible.

If the ROC has sent a notice, respond to it and file the form simultaneously. A pending strike-off action does not automatically close once you file, but demonstrating compliance helps significantly.

If your company has been struck off due to non-filing of INC-20A, the restoration process is more involved and requires a separate legal petition under Section 252 of the Companies Act.

The lesson is simple. Do not wait. Every week of delay adds to the additional fee and keeps your company in a legally unauthorised state.

Common Mistakes With Form INC-20A Filing

• Assuming incorporation is the last step and business can start immediately
• Directors depositing share capital into personal accounts instead of the company account
• Filing the form before share capital deposits are reflected in the bank statement
• Using an expired DSC when attempting to submit on MCA21
• Not tracking the 180-day deadline and realising too late
• Confusing the incorporation date with the date the certificate was received or printed

How LegalRaasta Helps With Form INC-20A Filing

LegalRaasta handles Form INC-20A filing as part of a complete post-incorporation compliance package:

• Tracking the 180-day deadline from your incorporation date
• Confirming share capital deposits are correctly reflected in the company bank account
• Preparing and uploading the complete filing on MCA21
• Managing DSC requirements for directors
• Downloading and storing the acknowledgement
• Setting up reminders for all upcoming annual compliance deadlines so nothing gets missed again

Conclusion

Form INC-20A filing is the final step that actually authorises your company to start operating. Incorporation gives you a legal entity. This form gives that entity permission to do business. Missing it does not just mean a penalty. It means every contract, every transaction, and every rupee spent from the company account was done without legal authorisation. It is the kind of gap that surfaces during investor due diligence, loan applications, and ROC scrutiny at the worst possible moment.

The form itself is simple. The documents are minimal. The fee is low when filed on time. There is no good reason to skip it or delay it. Connect with LegalRaasta today and get your Form INC-20A filing completed within the 180-day window so your company is legally authorised to operate from day one.

Frequently Asked Questions

1. What is Form INC-20A and why is it needed?

Form INC-20A filing is a Declaration of Commencement of Business under Section 10A of the Companies Act, 2013. It confirms to the ROC that subscribers have deposited their share capital in the company bank account. Without it, your company is not legally authorised to start operations, sign contracts, or use the share capital.

2. What is the deadline for Form INC-20A filing?

Form INC-20A filing must be completed within 180 days from the date of incorporation shown on your Certificate of Incorporation. There is no automatic grace period. Late filing attracts additional fees ranging from 2 times to 12 times the normal fee depending on how many days past the deadline you file.

3. What documents are needed for Form INC-20A filing?

Form INC-20A filing requires a bank account statement showing receipt of share capital from all subscribers, the Certificate of Incorporation, and the Digital Signature Certificate of the filing director. The bank statement must clearly show deposits matching each subscriber’s share capital amount in the company’s bank account.

4. What happens if Form INC-20A filing is not done?

Skipping Form INC-20A filing makes every director personally liable for a Rs 50,000 penalty and the company liable for a Rs 50,000 penalty under Section 10A. The ROC can also initiate strike-off proceedings to remove the company from the register if it believes no business is being carried on.

5. Can I file Form INC-20A after the 180-day deadline?

Yes. Late Form INC-20A filing is accepted on the MCA21 portal with additional fees. The later you file, the higher the multiplier on the normal government fee. File as soon as possible after missing the deadline. If the ROC has already initiated strike-off proceedings, you need to respond to the notice and file simultaneously.

6. Which companies are exempt from Form INC-20A filing?

Companies incorporated before 2nd November 2018 are exempt from Form INC-20A filing. Section 8 companies registered for charitable purposes and having no share capital are also exempt. All other Private Limited Companies, Public Limited Companies, and One Person Companies incorporated after that date must file.

7. What is the government fee for Form INC-20A filing?

Normal Form INC-20A filing fees range from Rs 200 for companies with share capital up to Rs 1 lakh to Rs 600 for companies with share capital of Rs 1 crore and above. Late filing multiplies these fees from 2 times for delays up to 30 days to 12 times for delays beyond 180 days after the original deadline.

8. Can a company raise funding before Form INC-20A filing?

No. A company that has not completed Form INC-20A filing is not legally authorised to commence business or borrow money. Any investor due diligence will surface this gap, and most investors will not proceed until the declaration is filed and the company is in full compliance with Section 10A.

9. What if share capital has not been deposited yet?

You cannot complete Form INC-20A filing until all subscribers have deposited their share capital in the company bank account. The declaration specifically states that the money has been received. Filing before the deposits are made is a false declaration and constitutes fraud under the Companies Act, 2013.

10. How does LegalRaasta help with Form INC-20A filing?

LegalRaasta tracks your 180-day deadline, confirms share capital deposits are correctly reflected in the company account, prepares and submits the complete Form INC-20A filing on MCA21, manages DSC requirements, and downloads the acknowledgement so your company is legally authorised to operate without any compliance gaps from day one.