Getting Business Commencement – INC-20A Filing Services

Getting business commencement generally refers to completing the statutory requirement for eligible companies to declare commencement of business with the Ministry of Corporate Affairs (MCA). For companies covered under Section 10A of the Companies Act, 2013, a director is required to file a declaration with the Registrar of Companies confirming that subscribers have paid the value of shares agreed to be taken by them.

The declaration is filed through Form INC-20A. The MCA's current instruction kit states that a company having share capital covered by this requirement must file the declaration within 180 days from the date of incorporation. Getting this compliance completed properly is important for newly incorporated companies that are subject to the requirement.

Who Needs Business Commencement Filing?

The requirement primarily applies to companies incorporated after the commencement of the relevant 2019 amendment and having share capital, subject to the conditions under Section 10A. Before filing, the company's eligibility and compliance position should be checked. The company should also have the necessary corporate information and supporting records available. This service can be relevant for:

• Newly incorporated private limited companies
• Newly incorporated public companies
• Companies having share capital covered by Section 10A
• Businesses that need to complete post-incorporation MCA compliance
• Companies preparing to commence business activities or exercise borrowing powers

The exact applicability should be determined from the company's incorporation details and statutory position.

What Is Form INC-20A?

INC-20A is the Declaration for Commencement of Business. It is an MCA webform used by an eligible company to submit the required declaration to the Registrar of Companies.

Under Section 10A, the declaration confirms that every subscriber to the company's memorandum has paid the value of shares agreed to be taken by them on the date of making the declaration. The company also needs to comply with the applicable registered-office verification requirement. The MCA instruction kit also specifies that the form is filed by a director and that the company must have an active MCA registration and valid CIN for the filing.

Why Is Business Commencement Compliance Important?

Completing the commencement of business requirement helps a company meet an important post-incorporation compliance obligation. If the required declaration is not filed within the applicable period, Section 10A provides for statutory consequences. The Companies Act specifies a penalty of ₹50,000 for the company and a penalty of ₹1,000 per day for every officer in default, subject to the statutory maximum for the officer.

There can also be restrictions relating to commencing business or exercising borrowing powers where the statutory requirements have not been fulfilled. For this reason, companies should review the requirement soon after incorporation rather than treating it as a routine filing that can be postponed.

What Does My Startup Solution Help With?

My Startup Solution provides assistance with the documentation and filing process for business commencement compliance.

The service can include:

• Checking basic company and incorporation details
• Reviewing the information required for INC-20A
• Checking subscriber share payment information
• Assisting with supporting documents
• Preparing information for the MCA webform
• Coordinating the applicable professional verification and filing requirements
• Reviewing the filing information before submission
• Assisting with the MCA filing process

The exact documents and professional requirements can vary depending on the company's circumstances.

Documents and Information Generally Required

The information required for INC-20A should be checked against the latest MCA requirements before filing. Commonly relevant information may include:

Company Details

• Corporate Identity Number (CIN)
• Company name
• Date of incorporation
• Registered office details
• Company email and other MCA-related information

Share Subscription Details

Evidence relating to payment of the value of shares agreed to be taken by subscribers may be required. The MCA's INC-20A instruction kit specifically identifies subscribers' proof of payment for the value of shares as a mandatory attachment.

Board Authorization

The form includes a declaration regarding authorization by the Board of Directors. Therefore, the company should maintain the relevant corporate records and authorization required for the filing.

Other Documents

Additional documents may be relevant in specific cases, such as companies regulated by a sectoral regulator. The requirements should be checked based on the nature and regulatory status of the company.

How Does the Business Commencement Process Work?

Step 1: Review Company Details

The company's incorporation information, CIN, registered office status, share capital and subscriber details are reviewed.

Step 2: Check Filing Requirements

The applicable requirements for Form INC-20A are checked based on the company's circumstances and current MCA requirements.

Step 3: Collect Supporting Documents

The required subscriber payment proof and other applicable documents are collected and reviewed.

Step 4: Prepare the Declaration

The required information is prepared for the INC-20A filing, including the relevant declaration and authorization details.

Step 5: Professional Verification and Filing

Where applicable, the form is verified and digitally signed by the required authorized persons or practicing professional before submission to the MCA.

Step 6: Filing Review

The submitted filing and MCA response should be monitored so that any further action or resubmission requirement can be addressed appropriately.

When Should INC-20A Be Filed?

For a company covered by Section 10A, the declaration is required to be filed within 180 days from the date of incorporation. Companies should therefore identify the due date soon after incorporation and arrange the required documentation in advance. Waiting until the final days can make it harder to resolve missing documents or information.

Can Business Commencement Filing Be Done After the Due Date?

A delayed filing may have statutory consequences. Section 10A specifies penalties for non-compliance, so companies should not assume that a missed due date has no impact.

If the filing is already overdue, the company should review its current MCA status, applicable additional fees or penalties, and the available compliance route before proceeding.

Why Choose Professional Assistance?

INC-20A may appear straightforward, but errors in company details, subscriber information, supporting documents, authorization, or digital filing can create avoidable compliance issues.

Professional assistance can help businesses:

• Understand the applicable filing requirement
• Organize the necessary information
• Check supporting documents
• Prepare the required filing details
• Follow the current MCA filing process
• Identify issues before submission

My Startup Solution focuses on making the business commencement compliance process easier to understand for company owners and newly incorporated businesses.

Get Assistance for Business Commencement Filing

If your company has recently been incorporated and you need to complete its commencement of business compliance, it is useful to check the applicable requirement and filing deadline at an early stage.

My Startup Solution can assist with the preparation and filing process for INC-20A, based on the company's available records and applicable MCA requirements. The service can help you organize the required information and complete the filing process with appropriate professional assistance.

Regulatory requirements, MCA forms, fees and filing procedures can change. The applicability and current filing requirements should be verified based on the company's specific circumstances and the latest MCA rules and instructions.