Hooray! You’ve just been issued the Certificate of Incorporation for your business. Before you begin posting ads, opening shop, or seeking capital, however, there is one legal form that demands your immediate attention: E-Form INC-20A.
Far too often neglected or underestimated, INC-20A is not just a form. It’s the authorization that legally gets your company up and running. Cut corners on this step, and you’ll risk being fined, sued, or worst of all, having to close shop.
What Is E-Form INC-20A?
INC-20A is an online form pursuant to Section 10A of the Companies Act, 2013, where the companies are requested to affirm that they’ve already been in receipt of the shareholders’ subscription money (i.e., capital contribution) at the time of incorporation.
To be submitted with the Registrar of Companies (ROC) prior to the company commencing business or raising loans.
Filing INC-20A = Legally declaring your company operational and ready to commence doing business.
Why INC-20A Was Introduced
In 2019, the Ministry of Corporate Affairs (MCA) witnessed an increase in the number of “shell companies” or registered companies that are not carrying on any business.
To avoid money laundering and have only genuine companies start operations, the MCA insisted on every new company submitting a declaration in the form of INC-20A.
It is a compliance check and proof of good business intention.
Which Companies are required to File INC-20A?
All such companies formed on or after 2nd November 2018, which have share capital, shall have to file E-Form INC-20A.
These include:
Exceptions:
- No share capital companies are exempted.
- Even Limited Liability Partnerships (LLPs) are exempted.
- Section 8 Companies (non-profit making companies) would not usually be required to file this form.
Filing Deadline – When to File INC-20A?
The form needs to be submitted within 180 days of the date of incorporation.
For instance:
If your company is being incorporated on 1st January, 2025, then you must submit INC-20A on or before 30th June, 2025.
Early submission is advisable. Delay will create eleventh-hour problems and unnecessary legal risk.
What Is the Document Required for INC-20A Filing?
Bring the following documents in advance before initiating the filing process:
1. Company Account Bank Statement
You must confirm that shareholders have deposited the subscribed capital. This is normally confirmed through your company’s initial bank statement of its current account.
Confirm that the statement clearly indicates:
- Name of firm
- Account number
- Deposit date
- Amount deposited by shareholders
2. Certificate of Incorporation (COI)
This is official confirmation that your company has been incorporated successfully.
3. MOA and AOA
These reports (Memorandum of Association and Articles of Association) are easily available in case any capital information is to be checked.
4. Board Resolution (Voluntary but recommended)
A director’s resolution to acknowledge receipt of share capital and consent to filing INC-20A. Not necessary in all cases, but it puts your filing on the record.
5. Digital Signature Certificate (DSC)
The form to be signed by a director using valid DSC token.
Step-by-Step INC-20A Filing Process
E-Form INC-20A is an electronic procedure and has to be completed correctly in each step. This is how to do it:
Step 1: Open a Current Account in the Name of the Company
- After incorporation, visit your preferred bank to open a current account.
- Submit COI, MOA, AOA, PAN, and board resolution wherever required by the bank.
- At the opening of the account, the shareholders must deposit the subscribed capital.
Step 2: Obtain Bank Statement
Upon receipt of all capital contributions, download the first official bank statement (PDF) showing such deposits.
Make sure it is:
- Clear and readable
- On official letterhead or stationery
- Shows deposit date and account holder name
Step 3: Login to the MCA Portal
Visit www.mca.gov.in. Login with your MCA registered user ID and password.
Move to MCA Services > Company Forms Download. Find Form INC-20A and download latest.
Step 4: Fill the Form
Fill in the following details carefully:
- Corporate Identity Number (CIN)
- Name of company
- Registered office address
- Share capital received details
- Attach the bank statement and facultative board resolution
Step 5: Sign Digitally
Obtain the form digitally signed by a director of the company by his/her Digital Signature Certificate (DSC).
In certain cases, the form shall also be required to contain the DSC of a Chartered Accountant (CA), Company Secretary (CS), or Cost Accountant (CMA) in whole-time practice.
Step 6: Upload the Form
Upload the electronically signed form on the MCA portal. Remit the applicable government fees (as per your company’s authorized capital).
Upon successful upload, you’ll get an acknowledgement and SRN number.
What Are INC-20A’s Filing Fees?
Government charges differ depending on your company’s largest allowed share capital. While we won’t have a table, here is the brief fee breakdown in sentence format:
- Up to a limit of ₹1 lakh, no more than ₹200.
- From ₹1 lakh up to ₹5 lakh, ₹300.
- From ₹5 lakh to ₹25 lakh, ₹400.
- From ₹25 lakh to ₹1 crore, ₹500.
- Over ₹1 crore, the filing charge is ₹600.
Late filing entails a charge on the basis of late days.
What Happens if You Don’t Meet the Deadline?
Default will attract heavy penalties and can even halt your company’s operations:
- The company will be subject to a penalty of ₹50,000.
- Each defaulting director will be charged ₹1,000 per day until the form is filed (max ₹1,00,000).
- The company cannot lawfully start its business or raise capital.
- ROC can apply for strike-off under Section 248.
Keep in mind that without INC-20A, you may apply even for GST number or get registered as a vendor for any large clients.
Avoided Error
Only a small error is needed to result in rejection of the Form or Re-submission. These common errors to be avoided:
- Submission of Form before Capital preservation
- Interrupted by an unverified or uncertain Bank passbook
- Utilize improper or outdated DSC
- Filing on the cut-off date
- Not cross-verifying details such as CIN, PAN, or date of incorporation
Hiring a professional or compliance expert is strongly suggested, more so for first-time entrepreneurs.
Advantages of Filing INC-20A within Time
- Legally start operations and provide invoices
- Achieve money, loans, and vendor registration
- Create trust with clients, partners, and the government
- Escape government penalties and hassle
- Make your business to run smoothly and according to law
Legal Dalal Why File INC-20A
INC-20A filing is straightforward but error or delay could cost you a fortune. Legal Dalal assists Indian startups and entrepreneurs to file INC-20A correctly, in time, and at an affordable cost.
This is what we can do for you:
- Compliance professional working only for you
- Document preparation guidance
- Online filing with MCA
- End-to-end assistance like correction, resubmission, or follow-up
- Full support through a call, WhatsApp, and email
You concentrate on growing your business—leave the compliance to us.
Call now at +91-80942 37237 or
Go to www.legaldalal.com
INC-20A FAQs: Your Questions Answered
Q1. Can I postpone depositing capital and then submit INC-20A?
No. You will have to deposit the capital before you file the form.
Q2. Would a professional sign INC-20A on my behalf?
Yes. The form will have to be signed and authenticated electronically by a practising CA, CS, or CMA in specific cases.
Q3. Can INC-20A be amended in case of mistakes during filing?
No. No chance of altering it once approved. You would need to rectify the same and re-submit within the deadline in case of rejection.
Q4. What if I was held up by a few days?
You will have to shell out penalties and late fees but at least it is good compared to risking business downtime.
Q5. Do re-registered or converted companies require INC-20A?
Yes, if the new company is a share capital company, the form becomes compulsorily again.
INC-20A is the initial document after incorporation and acts as the foundation for legal validity of your business. It is not a form—it’s a declaration of preparedness, a certificate of validity, and a commitment you must fulfill to be legally valid in India.
If you are not sure what to do or don’t wish to run into troubles, contact our seasoned experts at Legal Dalal. We handle everything from document verifications to timely filings and all this with complete peace of mind.
