Declaration before starting business operations
Category: ROC & Annual Compliance. From ₹1,999. Typical timeline: 3–5 days.
Overview
Form INC-20A is the declaration of commencement of business that every company incorporated with share capital must file with the ROC within 180 days of incorporation, confirming that shareholders have paid up their subscription money and the company has received a certificate of registration for any business requiring sectoral approval. Until this declaration is filed, the company cannot legally commence business operations or borrow money.
Who needs it
- Newly incorporated private limited companies and OPCs before they start any business activity
- Companies that need to open current accounts, sign contracts or issue invoices in the company's name
- Companies with sector-specific registration requirements (such as RBI, IRDAI) that must attach that approval
Eligibility
- Applies to every company incorporated on or after 2 November 2018 with share capital
- Requires that all subscribers to the memorandum have paid up their subscription amount into the company's bank account
- Not applicable to companies incorporated without share capital
Documents required
- Bank statement showing subscription money credited to the company account
- Board resolution noting receipt of subscription money
- Sectoral registration or approval certificate, if applicable (e.g., RBI for NBFCs)
- Certificate of incorporation and MOA/AOA
Process
- Open bank account and receive funds — The company opens a current account and each subscriber deposits their agreed subscription amount.
- Board confirmation — The board notes receipt of the paid-up capital in a resolution.
- Attach sectoral approvals — If the business requires a regulatory registration (RBI, SEBI, IRDAI, etc.), that approval is attached to the form.
- File Form INC-20A — The declaration is filed with the ROC within 180 days of incorporation, certified by a practicing professional.
Government fees
- Form INC-20A filing fee: Based on authorised share capital, per MCA fee schedule
- Late filing: Additional fee for delay beyond 180 days
Professional fee
Our fee starts at ₹1,999, covering bank account confirmation, resolution drafting and filing of the declaration.
Timeline
Filing usually takes 3–5 working days once subscription money is credited to the company's bank account; the statutory deadline is 180 days from the date of incorporation.
Deliverables
- Filed Form INC-20A with SRN
- Board resolution confirming receipt of subscription capital
Frequently asked questions
What happens if we miss the 180-day deadline?
The company incurs an additional filing fee for delay, and if the declaration remains unfiled, the ROC can initiate action to strike the company off the register.
Can the company sign contracts before filing INC-20A?
The company technically cannot commence business or exercise borrowing powers until INC-20A is filed, so operational activity should ideally wait until the declaration is complete.
Is a separate current account mandatory before filing?
Yes, subscription money must be shown as received into the company's bank account, so opening a current account is a practical prerequisite.
Common mistakes
- Starting business operations, invoicing or signing contracts before filing INC-20A
- Delaying the bank account opening, which pushes back the whole filing timeline
- Forgetting to attach sectoral approval where the business requires one
- Missing the 180-day deadline and incurring avoidable penalties
Penalties for non-compliance
- ₹50,000 penalty on the company and ₹1,000 per day (up to ₹1,00,000) on every officer in default for non-filing
- ROC can initiate strike-off proceedings against a company that fails to file within 180 days
- The company cannot borrow money or commence business until the declaration is filed
Legal references
- Companies Act, 2013 — Section 10A governs commencement of business and Form INC-20A
- Companies (Incorporation) Rules, 2014 — Rule 23A prescribes the filing procedure
- Companies Act, 2013 — Section 248 empowers strike-off for non-filing
What will this cost you?
Adjust the options below for an instant, indicative estimate. Final pricing is confirmed once our team reviews your specific documents.
All catalogue prices are exclusive of GST. Tax (typically 18%) is calculated and added at checkout. Government fees vary by state and are confirmed before filing.
Packages for this service
Every tier includes the same filing accuracy and compliance review — the difference is turnaround priority, support access and how hands-on we are with your documents.
Indicative tiers — talk to us to confirm exact scope and pricing for your business.
Get this handled — start today
Delivered by our verified compliance experts and tax professionals — tracked end-to-end in your client portal.
Request a callback
Tell us what you need and our team will call you within one business day with a confirmed scope and quote.