What is INC-20A? Guide to Commencement of Business Filing

Just registered your company in India? Hold on before you start making deals or taking loans, there’s one crucial legal hurdle you must clear first: Form INC-20A. 

Think of it as your company’s “license to operate.” This mandatory declaration tells the government that your shareholders have actually put their money where their mouth is and paid for their shares and that you’re genuinely ready to do business. 

Companies incorporated after November 2018 with share capital have exactly 180 days to file this form or face a complete business freeze—no transactions, no bank loans, and potentially having your company name struck off the register. 

Do not worry, I am here to help you with the complete application process for the commencement certificate that will help your business to start operations and get loans and investments to grow.

Who Must File Form INC-20A and Who is Exempt?

The Form INC-20A filing is mandatory for every company having share capital and incorporated on or after 2 Nov 2018. 

Companies Included:

• Pvt. Ltd. Companies (Private Limited Companies)
• Public Limited Companies
• One Person Company (OPC’s)
• Section 8 Companies with share capital

The form must be filled within 180 days from the day of incorporation and the director confirming that they have paid the agreed share capital.  

Now the question, who is exempted from this? Companies that are incorporated before 2 November 2018 are exempted and do not need to file this form. Also companies without share capital also come under this and LLPs under the LLP Act are also not required to fill out this form.

Commencement of Business Under Companies Act 2013

Once you have successfully registered your company in India, there is one more important step you have to complete before you can legally start the operations, which is the Certificate of Commencement of Business through the INC-20A form with the Ministry of Corporate Affairs.

Just think of it as your company’s “permit slip” to begin doing business. The INC 20A applicability covers all companies with share capital incorporated after November 2, 2018 as I have mentioned above and it’s a mandatory company incorporation compliance in India that can not be ignored or skipped.

How to Submit INC-20A: A Step-by-Step Guide for 2026

To make it more simple even if you have zero legal or compliance experience we have broken down the process into 5 simple steps that anyone can follow to get their commencement of business certificate in India.

Step 1: Open Company Bank Account

The first step involves opening a current account in your company name where all shareholders can deposit their money (Shareholders who agree to invest in your company).

Make sure the deposited amount exactly matches what is written in your MOA (Memorandum of Association) even a 1 rupees difference can cause rejection.  

Step 2: Collect All the Necessary Documents

Before you begin filling out the application form online, collect these necessary documents to make the process easier for you.

Documents required for commencement of business certificate:

• Bank statement/certificate
• DSC (Director Digital Signature)
• Professional Certificate (CA, CS, or CMA)
• Proof of registered office (rent agreement + utility bill)
• Regulatory Approvals (RBI, SEBI, etc.)

These documents act as your company identity proof. Without having them, you cannot proceed with the form filling.

Step 3: INC 20A Form Filling

Now, visit the MCA official website and log in with your registered credentials. Now navigate to MCA Services → e-Filing → Company Forms and select “INC-20A.”

Proceed with the form filling with:

• CIN (Corporate Identity Number)
• Company name and registered address
• Declaration 

Upload all your bank documents in PDF format. Each should be clear and in under 2Mb file size.

Tip: Prepare all the documents in advance as required (format, size, ratio, etc.) to make your application process faster and easier.

Step 4: Get it Digitally Signed

The form needs 2 important signatures:

1. Professional Certification: Share your filled form with a Chartered Accountant, they will verify every detail that everything is put accurately and certify the form using their professional signature.
2. Director’s Digital Signature: At least one of the directors from your company must sign the form using their digital signature

If you ask why two signatures are needed? The answer is one confirms accuracy while the other one takes responsibility for the information given.

Step 5: Pay Fee, Submit, & Track Status

In the final step, pay the government filing fee based on your authorized capital, you can make payment using net banking, a credit/debit card, or a challan.

Breakdown of fee for filing Form 20A according to authorized capital:

After paying, click on “submit”. You will immediately receive a service request number (SRN), save that for future reference.

You can also track your application by visiting the MCA portal and then viewing the status. By entering your SRN number you can check the status of your application form.

Once you get the approval, your company is now legally authorized to start operations.

7 Common Mistakes to Avoid When Filing INC-20A

Here are some common mistakes people must avoid while filling out the commencement form through the MCA portal.

1. Missing the Filing Deadline: The INC-20A must be submitted within 180 days after incorporation to prevent penalties and maintain compliance status.

2. Filing Before Receiving Subscription Money: The submission of the form becomes possible only after all subscribers complete their share capital payment into the company bank account.

3. Submitting Incorrect Bank Proof: The process will face delays or rejection when users upload bank statements that contain unclear information or incomplete content or errors.

4. Entering Wrong Company Details: The form will face rejection because of compliance issues that arise from incorrect entries of CIN and company name and registered address and director details.

5. Facing DSC-Related Problems: The Digital Signature Certificate must remain valid and registered and unexpired to enable successful form submission.

6. Skipping Professional Verification: The absence of expert review from a professional will lead to filing mistakes that create unnecessary legal complications for the future.

7. Assuming INC-20A Is Optional: The failure to submit INC-20A which serves as a mandatory compliance requirement will result in severe penalties and access restrictions.

Final Thoughts

The requirement to file Form INC-20A within 180 days after incorporation establishes your company as legally authorized to conduct business operations. The legal consequences for missing this deadline include operational freezes and registration strike-offs and financial penalties. The process requires you to first open a bank account which you should then use to collect documents before submitting them to MCA for professional certification. One error in the process will result in delays that will use up your essential time for conducting business operations. 

Do you need assistance with your INC-20A filing and other compliance requirements? The experts at Regible Corporate LLP will take care of everything for you. We handle your compliance needs so you can concentrate on expanding your business operations. Book a free call.