Incorporated? Your Company Can’t Legally Start Business Until You File This One Form
Incorporated your company in Hyderabad? You cannot start business or borrow until INC-20A is filed. Due date, documents and penalties explained simply.
Most founders celebrate the day the Certificate of Incorporation arrives — and then get straight to work. Invoices go out, a vendor is paid, maybe a director lends the company some money. Six months later, a notice from the Registrar of Companies points out that the company was never legally allowed to do any of that.
The missing piece is Form INC-20A. Under section 10A of the Companies Act, 2013, a company with share capital incorporated on or after 2 November 2018 must file a declaration within 180 days of incorporation confirming that every subscriber has paid for the shares they agreed to take. Until it is filed, the company cannot commence business or exercise borrowing powers. If you are handling INC-20A filing in Hyderabad, this is the one form to diary on day one.
Who must file INC-20A?
| Company type | INC-20A required? |
|---|---|
| Private limited company with share capital (incorporated on/after 2 Nov 2018) | Yes |
| One Person Company (OPC) with share capital | Yes |
| Public company with share capital | Yes |
| Company without share capital (e.g., many section 8 companies limited by guarantee) | No |
| LLP | No — INC-20A is a Companies Act form |
What exactly do you declare?
A director declares, with a digital signature, that every subscriber to the Memorandum has paid the value of the shares they agreed to take. The proof is the company’s bank statement showing the subscription money received. If the business needs a sector regulator’s approval (for example, RBI registration for an NBFC), that approval is attached too.
Step by step: how INC-20A gets done
- Open the company’s current account (see our guide on choosing a bank for your company).
- Each subscriber transfers their subscription amount into the company account — from their own account, so the trail is clean.
- Download the bank statement showing every receipt.
- Prepare INC-20A on the MCA portal, attach the statement, and sign with the director’s DSC (Digital Signature Certificate).
- Pay the filing fee (it depends on authorised capital) and keep the SRN (Service Request Number) and challan on record.
- Issue share certificates to subscribers within the time the Act allows, and record them in the register of members.
What if you miss the 180 days?
This is not a paperwork technicality:
- Penalty on the company: ₹50,000.
- Penalty on every officer in default: ₹1,000 for each day the default continues, up to ₹1,00,000.
- Strike-off risk: if the Registrar has reasonable cause to believe the company is not carrying on business, it can start proceedings to remove the company’s name from the register.
- Business done before filing is exposed: contracts signed and loans taken before INC-20A sit on weak footing, which investors and banks notice in due diligence.
Late filing is still possible with additional fees, but the penalty under section 10A is a separate consequence. (Confirm the current filing and additional fee with the MCA fee schedule.)
A quick timeline example
A startup incorporated in Gachibowli on 10 October 2026 has until roughly 8 April 2027 (180 days) to file INC-20A. In practice, file within the first few weeks — as soon as all subscribers have paid — so the company can sign contracts and borrow without question.
CA in Kondapur & Gachibowli: why founders want a CA, CS and advocate under one roof
INC-20A is a company-secretarial filing, but it touches the bank, share certificates and the first auditor’s appointment — and if a deadline was missed, the penalty response may need legal drafting. ComplianceKart is a boutique practice with CAs, CSs and advocates under one roof — like a multi-speciality hospital — based in Kondapur near Hitech City. We track the 180-day clock from incorporation and file INC-20A the week the share money lands.
FAQ
What is the due date for INC-20A? Within 180 days from the date of incorporation shown on the Certificate of Incorporation.
Can my company invoice clients before filing INC-20A? The law says a company with share capital cannot commence business until the declaration is filed, so file it before you start trading.
Do OPCs need to file INC-20A? Yes, if the OPC has share capital and was incorporated on or after 2 November 2018.
What is the penalty for not filing INC-20A? ₹50,000 on the company and ₹1,000 per day (up to ₹1 lakh) on each officer in default, plus a risk of strike-off.
What proof is attached to INC-20A? The company’s bank statement showing subscription money received from each subscriber, and any sector regulator’s approval where applicable.
Source: Companies Act, 2013 — section 10A, India Code (as of October 2026).
Incorporated in the last six months and not sure INC-20A was filed? ComplianceKart’s CS team in Kondapur/Hitech City will check your MCA record and file it right away. Call or WhatsApp 9959536391, or email team@compliancekart.com.
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