Commencement of Business — The Mandatory Declaration Before Trading Begins.

Form INC-20A, the Declaration of Commencement of Business, is a mandatory filing under Section 10A of the Companies Act, 2013 introduced to ensure that a company actually receives its subscription capital before it begins operations. Every company incorporated on or after 2 November 2018 that has a share capital must file INC-20A within 180 days of incorporation — failing to do so is a statutory default that attracts penalties and, more significantly, can trigger RoC action to strike off the company.

The form is a director's declaration confirming that every subscriber to the Memorandum has paid the value of the shares agreed to be taken by them, and that the payment has been received in the company's bank account. It is a self-declaration — no documentary proof is uploaded — but the underlying bank credit must actually exist. This means the company bank account must be opened, subscription amounts received, and share certificates issued to subscribers before the declaration can validly be made.

If the 180-day window is missed, the company is liable for a penalty of ₹50,000, and every officer in default is liable for ₹1,000 per day of default up to ₹1,00,000. The RoC can also initiate strike-off proceedings for companies that have not commenced business and not filed INC-20A. We verify the bank credit position, confirm director KYC status, and file INC-20A correctly and within the deadline.