INC-20A Filing with ROC: Prerequisites, Process, Due Dates & Time Taken

INC-20A or Certificate of Commencement of Business, is a mandatory post incorporation ROC filing immediately after starting the private limited or One Person Company. This declaration allows the company to start its business transactions and take financial loans from the bank for its business operations. Both private and one-person companies must file this declaration with the Registrar of Companies. Companies cannot do any further filings unless INC-20A is filed. Till November 2, 2018, there was no need to file INC-20A to the ROC, but after 2018, it became mandatory to file INC-20A to begin company activities. This declaration form is to be filed and signed by the company director and submitted within 180 days or before doing any business transactions in the company from the starting date of incorporation of the business. BizFoc provides seamless service to the new company registration to get the certificate of commencement of business.

What is certificate of commencement of business or INC-20A form

Certificate of Commencement of Business or INC-20A is a compulsory filing for all the companies after 2 November 2018. This declaration filed by the company directors within 180 days of incorporation date of the business. It offers the company to begin their business operation and take money loan fron the bank. It is the most essential compliances need to follow to prevent from penalities.

Prerequisites to File Commencement of Business Declaration or INC-20A

Two primary compliances must be ensured before filing the INC-20A or Certificate of Commencement of Business. The company must provide the details of its office at the time of its incorporation or within 30 days after the incorporation date. After the company incorporation, all amount of subscribed capital as prescribed in the MOA (Memorandum of Association) of the company needs to be deposited in its bank account during, before, or within 60 days. Before filling out the declaration form for business commencement, let's know all its prerequisites:- The address of the registered business has been informed to the ROC. A new bank account has been opened in the company’s name. The company’s bank statement does not include any transaction related to its capital. The shareholders need to deposit the entire amount of subscribed capital. Yet, the company has not started its business operations.

Documents Required for INC-20A Filing

To complete the application form for INC-20A, it’s important to know which documents are mandatory for the certificate of commencement of business. Attach all the documents to finish the INC-20A filing. Following are the documents required for the INC-20A, or the declaration for business commencement: -

• Subscriber proof of payment of shares from all shareholders in their respective shareholding ratio
• Photograph of Registered Office showing the external building and inside office also showing therein at least one Director/ KMP
• Certificate of Incorporation of the Company
• DSC of the Authorized Company Director
• DIN of the Authorized Company Director
• Valid membership number of practicing professional along with DSC

Process for Declaration for Business Commencement

To proceed with a declaration of INC-20A or certificate of business commencement, visit the official website of the MCA (Ministry of Corporate Affairs). Fill out the form online and submit it to the RoC. Submit all the required documents and pay the respective fees. Following are the steps for filing INC-20A.

1. Arrange all the essential documents: This is one of the most necessary steps under the Companies Act, 2013, Form INC-20A, or the certificate of commencement of business. Upload all the essential documents according to the website guidelines. Arrange all these documents before starting the process of filing the declaration to make it straightforward. The application form may be rejected due to incorrect or inadequate documentation.
2. Filling form INC-20A: Once you arrange all the documents, the applicant can start filing INC-20A. Visit the official government website of the Ministry of Corporate Affairs to fill out this INC-20A. To complete online registration, sign it using his digital signature certificate. In addition, the application must be verified for authenticity by the CA, CS, or CMA.
3. Submit the necessary documents: After completing the online declaration form, upload all the prescribed documents per the instructions on the website. A complete and elaborate list of all such documents has been given in the next section.
4. Submit Form INC-20A: After filling out all the information and submitting all the authorized documents with the online form, upload the form on the MCA website and submit it after paying the prescribed government fees.
5. Acknowledgement Receipt of Issuance: Once you complete the registration process and submit it to the (MCA) Ministry of Corporate Affairs website under the ROC, applicants receive an acknowledgment receipt as evidence of the declaration filing. Also, keep all the documents attached to the application for future reference.

Approval of Form INC-20A by the RoC

The INC-20A form needs to be filed carefully with the help of professionals like cost accounts, chartered accounts, and company secretaries. These professionals are responsible for verifying the application carefully and ensuring the attached documents are authentic and correct. Once you file the INC-20A or certificate of commencement of business with the prescribed fees, it’s approved by the ROC.

INC-20A Due Dates and Late Filing

To ensure your company's originality, INC-20A is mandatory for the commencement of business. According to the Companies Act 2013, just 180 days from the date of issue of the incorporation certificate of the company are given for the filing of INC-20A. As Per our advice, it must be filed immediately after its incorporation. This is important because the company can only begin its business activities or take out loans for its business growth and operations if it files INC-20A. Don’t be late; file the declaration as soon as possible to start the business activities.

Filing INC-20A fees depends on the subscribed capital of the business. The fees for INC-20A are mentioned below.

However, INC-20A can be filed after the given deadline with the late filing fee. The late filing fee for the form has been given below.

Time Taken for Filing INC-20A

INC-20A Filing needs to be filed within 180 days with its incorporation or before commencement of transaction in bank account. If the company is unable to file, it can result in penalties. Bizfoc team can file the INC-20A within one day and MCA approves it the same day.

Consequences of Non-Filing INC-20A Filing

The Certificate of Commencement of Business, or INC-20A, is compulsory legal compliance. If your company is non-filing, late filing, or incorrectly filing INC-20A, then the company needs to face the below consequences prescribed for non-filing INC-20A:

• Every officer of the company, generally involving its directors, secretary, CFO, and manager, must pay a penalty of ₹ 1000 for each day of default. However, ₹1,000 per day for each director of the company, up to a maximum of ₹1,00,000 (one lakh).
• If the company fails to comply with the given rules and regulations, then the company has to pay a penalty of ₹ 50,000 (fifty thousand).
• To file the INC-20A, the maximum time allowed is 180 days from the company's incorporation. If the company cannot file the INC-20A, it will be struck off under Section 248.