After incorporation of a company, certain mandatory legal compliances must be completed before officially commencing business operations. One of the most important compliances under the Companies Act, 2013 is filing the declaration for commencement of business through Form INC-20A.
A company having share capital cannot legally commence business activities or exercise borrowing powers unless this declaration is filed with the Registrar of Companies (ROC) within the prescribed timeline.
We provide complete assistance for Business Commencement Filing including documentation, drafting, ROC filing, and compliance support across India.
What is Business Commencement Filing?
Business Commencement Filing is a declaration submitted by a company confirming that:
- Shareholders have paid the subscribed share capital
- The company has established its registered office
- The company is ready to start business operations
The declaration is filed electronically with MCA through Form INC-20A.
Applicability of INC-20A
Business commencement filing is generally applicable to:
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPC)
This requirement applies to companies incorporated with share capital.
Importance of Business Commencement Compliance
Filing INC-20A is important because:
- It legally authorizes the company to commence operations
- It allows the company to exercise borrowing powers
- It ensures compliance with Companies Act, 2013
- It avoids penalties and ROC notices
- It improves legal credibility of the company
Our Services Include
We provide end-to-end support for business commencement compliance including:
- INC-20A Filing
- ROC Compliance Assistance
- Drafting Board Resolution
- Documentation Support
- MCA Form Preparation
- Verification of Share Capital Compliance
- Professional Advisory & Filing Support
Documents Required
The following documents are generally required:
- Certificate of Incorporation
- PAN Card of Company
- MOA & AOA
- Company Bank Account Details
- Bank Statement showing share capital received
- Registered Office Proof
- Board Resolution
- DSC of Director
Procedure for Getting Business Commencement
1. Open Company Bank Account
The company opens its current account after incorporation.
2. Deposit Share Capital
Subscribers transfer share subscription money into the company bank account.
3. Prepare Necessary Documents
Required declarations and supporting documents are prepared.
4. File Form INC-20A
The declaration is filed electronically with ROC through MCA portal.
5. ROC Approval
Upon successful filing, the company becomes eligible to commence business operations legally.
Time Limit for Filing INC-20A
Form INC-20A must generally be filed within 180 days from the date of incorporation of the company.
Penalty for Non-Compliance
Failure to file business commencement declaration may result in:
- Monetary penalties on company and directors
- Restriction on business operations
- Inability to exercise borrowing powers
- Risk of strike-off action by ROC
Benefits of Professional Assistance
- Accurate ROC filing
- Timely compliance
- Error-free documentation
- Avoidance of penalties
- Smooth commencement process
- Expert legal guidance
Why Choose Us?
- Experienced ROC Compliance Team
- Fast Processing Support
- Affordable Professional Fees
- PAN India Service Coverage
- End-to-End Compliance Management
- Dedicated Professional Assistance
Frequently Asked Questions (FAQs)
Is INC-20A mandatory for every company?
It is generally mandatory for companies incorporated with share capital.
Can a company operate without filing INC-20A?
No, the company cannot legally commence business or borrow funds before filing the declaration.
Is bank statement compulsory for filing?
Yes, proof of receipt of subscription money is generally required.
What is the due date for INC-20A filing?
The form should generally be filed within 180 days from incorporation.
What happens if the form is not filed?
The company and directors may face penalties and possible regulatory action.
Get Expert Assistance for Business Commencement Filing
We assist startups and companies with complete INC-20A filing, ROC compliance, documentation, and business commencement formalities professionally across India.