INC-20A (commencement of business): the 180-day deadline, the penalty and how CA firms avoid strike-off

Last updated 20 Oct 2026 · India

Short answer. A company with share capital incorporated on or after 2 November 2018 cannot start business or borrow until it files a declaration in Form INC-20A that every subscriber has paid for their shares. It is due within 180 days of incorporation (section 10A, Companies Act 2013). If it is missed, the company faces a penalty of ₹50,000 and each officer in default ₹1,000 per day up to ₹1,00,000, and the Registrar can start striking the company off.

What the form proves

INC-20A is a director's declaration that the subscription money was actually received. Attach proof, usually the company bank statement showing each subscriber's payment. Where the law requires it, a practising CA, CS or CMA certifies the form.

Timeline for a new company

Day	Action
0	Certificate of incorporation (SPICe+)
Week 1–2	Open bank account (often through the SPICe+ linked form)
As soon as funds arrive	Subscribers transfer the full subscription amount
Before day 180	File INC-20A with the bank statement
Within 30 days of incorporation, if not given at incorporation	Registered office verification (INC-22)

Why it matters beyond the fine

No INC-20A means the company may not commence business or exercise borrowing powers.
If it is not filed and the Registrar believes the company is not doing business, the ROC can start strike-off under section 248.

Common mistakes

Subscribers never transfer the money because "it's our own company". The declaration needs real receipts.
Cash deposits with no trail per subscriber. Each subscriber's payment should be traceable.
Counting 180 days from bank account opening. The count starts from the incorporation date.
Assuming OPCs or small companies are exempt. Section 10A covers companies with share capital, including OPCs. Companies without share capital are outside it.

Checklist for CA firms

Incorporation date + 180 days in the client calendar
Subscription money received from every subscriber, bank statement saved
INC-22 status checked
INC-20A filed, SRN and challan saved
Client told: no business or borrowing until filed

Frequently asked questions

What is the due date for INC-20A?

Within 180 days from the date of incorporation, for companies with share capital incorporated on or after 2 November 2018.

What is the penalty for not filing INC-20A?

₹50,000 for the company, and ₹1,000 per day for each officer in default up to ₹1,00,000, under section 10A of the Companies Act, 2013.

Does INC-20A apply to a One Person Company?

Yes, if the OPC has share capital, which OPCs registered through SPICe+ normally do.

Can the ROC strike off a company for not filing INC-20A?

Yes. If the declaration is not filed and the Registrar has reasonable cause to believe the company is not carrying on business, strike-off can be started under section 248.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 20 Oct 2026.

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