Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What INC-20A is
INC-20A is a declaration that the company’s subscribers have paid the share capital they agreed to at incorporation. It confirms the company is genuinely funded and ready to operate. It must be filed within 180 days of incorporation, with proof of the capital deposited in the company’s bank account.
You can't trade until it's filed
Until INC-20A is filed, the company cannot commence business or exercise borrowing powers — so it shouldn’t be signing major contracts or taking loans before it’s done. Late filing carries a penalty (on the company and each director), and prolonged default can even lead to the company being struck off. Confirm the current penalty amounts.
A worked example
Example: a company incorporated on 1 April opens its bank account, the founders deposit the ₹1 lakh subscribed capital, and it files INC-20A well within 180 days — clearing the way to trade. A company that forgets and starts billing customers without filing exposes itself and its directors to penalties. It’s a key item on the post-incorporation checklist. Our team can file it on time.