INC-20A FROM

The INC-20A form, also known as the Declaration for Commencement of Business, is an important compliance requirement under the Companies Act, 2013 and must be filed with the Registrar of Companies (ROC). This declaration must be submitted by the company’s directors, confirming that every subscriber to the company’s memorandum has paid the value of the shares agreed upon at the time of incorporation. It serves as proof that the company has genuine capital investment and is ready to begin legitimate business operations. Companies are required to file this form within 180 days from the date of incorporation, and failure to do so may result in serious consequences. The Registrar of Companies holds the authority to initiate action for the removal of the company’s name from the register, which effectively means the company could be struck off. Additionally, the company and its directors may face penalties for non-compliance — typically, a fine of ₹50,000 for the company and ₹1,000 per day of default for each officer in default. The introduction of Form INC-20A was primarily aimed at enhancing corporate transparency and accountability. It acts as a safeguard against shell companies and fraudulent entities that were being created without any genuine intent to do business. The filing also helps the government verify the authenticity of capital infusion and ensures that only compliant and operationally ready companies are allowed to remain active.