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Commencement of Business Filing: Complete Process and Benefits
What is the Declaration of Commencement of Business (FORM-20A)
FORM-20A (also known as INC-20A) is a mandatory declaration that directors of a newly incorporated company with share capital must file with the Registrar of Companies (RoC) before starting any business operations or borrowing funds. This declaration confirms that all initial share subscribers have paid their share capital, as per the Companies Act, 2013, and is crucial for legal compliance in India.
At MrBrandy, we provide end-to-end service & support to make the process quick, accurate, and stress-free.
Who Needs to File FORM-20A?
- Applicability: Every company with share capital incorporated in India on or after 2 November 2018.
- Exemptions: Companies without share capital, or those incorporated before 2 November 2018, do not require this filing.
- Deadline: The form must be filed within 180 days of incorporation
Why is FORM-20A Required?
- Legal Prerequisite: It’s illegal to commence business activities or borrow funds before this declaration is filed.
- Prevents Shell Companies: Ensures all businesses are genuine and have received paid-up share capital from their subscribers.
- Compliance and Penalties: Non-filing can result in hefty fines, disqualification of directors, and even strike-off of the company
Penalties for Default
The penalties for non-compliance are very high. This is intentional, aiming to reduce the number of shell companies. Here are the penalties for non-compliance:
- Penalty on the company: A penalty of Rs 50,000 will be imposed on the company if it fails to meet the mentioned requirement.
- Penalty on the officers: Each officer in default will face a penalty of Rs 1,000 for each day the default continues, up to a maximum of Rs 1,00,000.
- Company strike-off: If the Registrar has reasonable grounds to believe that the company is not conducting any business or operations even after 180 days of incorporation, the Registrar may remove the company’s name from the Register of Companies.
Documents Required for Commencement of Business Filing
- Copy of Incorporation Certificate
- Bank Statement / Bank Passbook
- MOA
- DSC of Director
Process of Commencement of Business Filing with MrBrandy
Step 1 – Data Collection
We collect COI, bank proof of subscription money, and registered office details.
Step 2 – Drafting INC-20A
Our compliance experts prepare Form INC-20A with accurate details.
Step 3 – Filing with MCA
The form is filed online using the DSC of a director and certified by a practicing professional (CA/CS).
Step 4 – MCA Approval
Once approved, your company is legally allowed to commence operations.
Why Choose Mr Brandy for Commencement of Business Filing?
- Expert team handling 100+ MCA filings every month.
- Hassle-free online process with quick turnaround.
- Affordable pricing with no hidden charges.
- Guidance on other compliances post-incorporation.
- Trusted by 500+ startups and companies across India.
FAQs for Commencement of Business Filing
Is FORM-20A a one-time requirement?
Yes, it is a one-time filing, only at company incorporation
Can I start a business without filing FORM-20A?
No, business operations or borrowing are not legally permitted until this form is filed and approved.
Can I file Form-20A late?
Late filing is allowed with additional government fees. Major penalties apply for not filing at all.
What is INC-20A?
INC-20A is the e-form filed with MCA to declare commencement of business.
Is INC-20A filing mandatory?
Yes. Every company incorporated after November 2018 must file INC-20A within 180 days.
What happens if I don’t file INC-20A?
Your company will be penalized, directors will be fined, and your business cannot start operations legally.
How long does it take to file a Commencement of Business?
With complete documents, it can be filed and approved within 2–3 working days.
Who signs INC-20A?
The form must be digitally signed by a director and certified by a practicing professional (CA/CS).
File INC-20A Now
Don’t risk penalties or restrictions. File your Commencement of Business (INC-20A) online with MrBrandy today. Our experts ensure fast, compliant, and affordable filing with MCA.