Home > Income Tax > Help Center > INC 20A Guide Last Updated: Dec 08th 2023
INC 20A | Commencement of Business Guide
INC 20A is a form to declare the commencement of the business for the companies. Every Company which is incorporated after 02nd Nov 2018 needs to file INC 20A with the Registrar of Companies (ROC). Know more on who to file, timing, MCA fees, non-filing consequences, & penalties.
Rule 23A of the Companies (Incorporation) Rules, 2014 and Section 10A of Companies Act 2013 governs the INC 20A.
This document covers
- Companies required to File INC 20A
- Companies not required to file INC 20A
- Time Limit to file INC 20A
- Pre-requisites for Filing INC 20A
- MCA Fees for filing INC 20A
- Late Fees for filing INC 20A
- Consequences of Non filing of INC 20A
- Required details for INC 20A.
1. Companies required to File INC 20A
Any Company
- With share capital and
- Incorporated after 02nd Nov 2018 is required to file INC 20A.
2. Companies not required to file INC 20A
The following companies are not required to file INC 20A
- Companies incorporated before 02nd Nov 2018.
- Companies incorporated without Share capital either before 02nd Nov 2018 or after 02nd Nov 2018.
3. Time Limit to file INC 20A
Every company must file INC 20A within 180 days from the date of incorporation.
For the companies incorporated between January 2020 to September 2020, the due date is extended to 360 days from the date of incorporation.
4. Pre-requisites for Filing INC 20A
The following are the pre requisites for filing INC 20A
- The company should open a bank account on its name.
- The shareholders of the company should transfer the amount from their personal account in the agreed capital
- The company should have intimated the registered business address to ROC.
- The company should not have started its business or taken any borrowings.
Generally, while filing INC 20A, the company bank statement should not contain any other transactions apart from the capital transfer by shareholders.
5. MCA Fees for filing INC 20A
Every ROC form should be accompanied by a government fees. The Government fees for filing INC 20A is as follows.
| S.No | Share Capital | Applicable Fees |
|---|---|---|
| 1 | < 1,00,000 | Rs 200 |
| 2 | 1,00,000 to 4,99,999 | Rs 300 |
| 3 | 5,00,000 to 24,99,999 | Rs 400 |
| 4 | 25,00,000 to 99,99,999 | Rs 500 |
| 5 | 1,00,00,000 or more | Rs 600 |
6. Late Fees for filing INC 20A
If the companies don’t file the INC 20A within due date, there is a late fee levied by MCA. Below is the late fee for belated filing of INC 20A
| S.No | Period of delay | Applicable Fee |
|---|---|---|
| 1 | Upto 30 days | 2 times of normal fees |
| 2 | 31 days to 60 days | 4 times of normal fees |
| 3 | 61 days to 90 days | 6 times of normal fees |
| 4 | 91 days to 180 days | 10 times of normal fees |
| 5 | More than 180 days | 12 times of normal fees |
7. Consequences of Non filing of INC 20A
If the company has not filed INC 20A or any defaults in complying with the requirements, following are the consequences.
- Every company is required to pay a penalty of Rs 50,000 for each failure
- Every director of the company who is in default is required to pay a penalty of Rs 1000 per day of default. However the maximum penalty for such failure is capped @ Rs 1,00,000
8. Required details for INC 20A.
The following are the details required for filing INC 20A
- CIN and Name of company
- Registered Address, Latitude and Longitude of the company
- Number of shareholders
- Name of shareholder, Bank Name, Account number, IFSC Code and date of receipt of capital from shareholder
- Photograph of registered office showing external building and inside office also showing atleast 1 director
- Bank Statement with the capital deposit