INC-20A: Declaration for Commencement of Business
Prepare the director's declaration that subscribers have paid for their shares, filed with the ROC within 180 days of incorporation.
What it is
A company with share capital incorporated after 2 November 2018 cannot commence business or borrow until a director files a declaration under Section 10A of the Companies Act, 2013 that every subscriber to the memorandum has paid the value of the shares agreed to be taken. The declaration is filed in Form INC-20A within 180 days of incorporation, with proof of the subscription money received in the company's bank account. This template prepares the declaration and the supporting details.
When it is used
- A newly incorporated company with share capital.
- Before the company starts business or borrows.
- After subscribers have deposited their subscription money.
What the template covers
- Company name, CIN, date of incorporation and registered office
- Authorised, subscribed and paid-up capital
- Number of subscribers
- Bank account, branch and date of credit
- Declarant director name and DIN
- Date of declaration
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Company
Company Name; CIN; Registered Office; Date of Incorporation; Date of Declaration
Capital
Authorised Capital (₹); Subscribed Capital (₹); Paid-up Capital received from subscribers (₹); Number of Subscribers to MoA
Bank
Bank Name where subscription amount credited; Current Account Number; Bank Branch; Date of credit of subscription amount
Authentication
Declarant Director Name; DIN
Stamp duty, registration and filing
Failure to file within 180 days attracts a penalty on the company and on each officer in default under Section 10A, and the Registrar may start action to strike off the company if it is not carrying on business. The bank statement showing the subscription money is attached. Check the current penalty and procedure on mca.gov.in.
Generate the INC-20A — Declaration of Commencement of Business
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the MCA e-form filing)? Contact SKAG and Associates
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Frequently asked questions
What is the deadline for INC-20A?
Within 180 days of the date of incorporation.
Is INC-20A required for a Section 8 company without share capital?
No. Section 10A applies to companies having share capital.
Can a company open a bank account before INC-20A?
Yes. The bank account is needed to receive subscription money, which is then shown in INC-20A.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.