What is INC-20A?
Form INC-20A is a pivotal compliance document known as the Declaration for Commencement of Business. Introduced to curb shell companies, this form proves to the ROC that the initial shareholders (subscribers) have actually deposited their promised share capital money into the company’s official bank account.
Who Must File INC-20A?
Any company having share capital that was incorporated on or after November 2, 2018, is required to file this form. The company’s directors must sign the declaration and attach proof of capital receipt.
INC-20A Due Date & Timeline
The form affords a generous window: it must be filed within 180 days from the exact date of the company’s incorporation as printed on the Certificate of Incorporation.
Consequences of Late Filing INC-20A
Filing late attracts the standard multiplier penalty (up to 12x the normal fee). However, the real danger is existential: if INC-20A is not filed within 180 days, the ROC possesses the authority to assume the company is not carrying on any business and may unilaterally strike the company’s name off the register, effectively shutting it down.