Commencement of Business (INC 20A) Filing New

What is Commencement of Business Certificate and form INC 20A?

All you need to know

The newly rolled out and most discussed among the corporate is Form INC-20A. Those Companies registered in India after the commencement of the Companies (Amendment) Ordinance, 2018 and having share capital is required to obtain the commencement of business certificate before commencing any business or exercising any borrowing powers. One can say that the Ministry has reintroduced the concept of Commencement of Business Certificate via Form INC-20A on MCA.

Form INC 20 A(Commencement of Business Certificate):

Form 20A is a declaration that needs to be filed by the directors of the company at the time of the commencement of the business. It should be verified by a Chartered Accountant (CA) or Company Secretary (CS) or a Cost Accountant in practice.

On the 2nd of November, 2018 the Companies (Amendment) Ordinance 2018 was introduced, hence any company incorporated after this date will be required to file Form INC-20A. within 180 days from  the date of  incorporation of the company.

Government Fees for Form INC 20 A (Commencement of Business Certificate):

Nominal Share Capital

Applicable Fees in (Rs.)

Where share capital is less than 1,00,000


1,00,000 or above but not exceeding 4,99,999


5,00,000 or above but not exceeding 24,99,999


25,00,000 or above but not exceeding 99,99,999


1,00,00,000 or above



Form INC 20 A late filing fees (Commencement of Business Certificate):

Period of delay

late fees

Up to 30 days

2 times of normal fees

More than 30 days and up to 60 days

4 times of normal fees

More than 60 days and up to 90 days

6 times of normal fees

More than 90 days and up to 180 days

10 times of normal fees

More than 180 days

12 times of normal fees


Penalty for Form INC 20 A for Commencement of Business:

  • Company will be liable to pay Rs. 50,000 penalty for not filing the Form INC 20A
  • Every officer who is in default is liable to pay Rs. 1000/- per day of default upto a Maximum Rs. 1,00,000/-
  • Registrar may initiate action for the removal of the name of Company / Strike off company name


Consequences of non-filing of Form-INC-20A may create hindrance for companies to start their business and also while borrowing of money. The company would be liable to a Penalty for late filing the Form INC-20A if it exceeds 180 days of from the date of incorporation Read more here on late filing fees for INC 20A. is an eminent business platform and a progressive concept, which helps end-to-end incorporation, Secretarial compliance Services, Tax Consultancy Services, and management consultancy services to clients in India and abroad.  Filing of E-Form INC-20A is easy, seamless, cheapest and quickest with! Get in touch with Chithragupta Compliance Manager to understand what is E – Form INC-20A filing process and whether you need to file E – Form INC-20A. You may get in touch with our compliance manager on : 8074555580 or email : for free consultation.


Documents required for obtaining Commencement of Business Certificate


Quick Checklist

    • Subscribers proof of payment for value of shares i.e. bank statement of Subscribers
    • Certificate of Incorporation
    • Digital Signature of Director