• Provision of declaration for commencement of business re-introduced. Name of company can be removed if not complied with.
  • In many routine matters, ‘fine’ or ‘imprisonment’ converted into ‘Penalty’, which can be imposed directly by RD or ROC after issuing SCN.
  • Removal of name if company if subscription amount not paid or company not carrying on business.


“A company incorporated after commencement of the companies (amendment) ordinance, 2018, i.e 02-11-2018 and having share capital shall not commence any business or exercise any borrowing powers unless-

(a) a declaration filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in FORM INC- 20A and verified in such a manner as may be prescribed, with the registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and

(b) The company has filed with the registrar a verification of its registered office as provided in sub-section (2) of section 12 in FORM INC-22.

Vide MCA notification dated 18/12/2018 Companies (Incorporation) fourth amendment Rules, 2018 has come into force wherein after rule 23, “rule 23A has been inserted” stating that the declaration to obtain certificate of commencement of business is required to be filed in Form – INC- 20A.

When to Apply?

Within 180 Days of Incorporation

Who needs to apply?

Companies having share capital which are Incorporated on or after 02/11/2018.

Documents Required

Bank statement of company having all credit entries for receipt of subscription money received from all subscribers to MOA.


Company can’t:- Start Business activity and Exercise any borrowing power (section 10A)

Any Default -Penalty to be levied

Company – Rs. 50000

Director –Rs. 10000 Per Day up to Rs. 100000

Forms to be filed

INC 20A & INC 22 (As per Instruction Kit Form INC-22 is Not required to be filed if Registered Address is already mentioned in Company incorporation forms. )


  • Subscribers proof of payment for value of shares.
  • Therefore, As per Above Requirements, Kindly provide us Bank Statement of Company having all credit entries for receipt of subscription money from Subscribers.
  • If Company is regulated by any sectoral regulator, Information Required:
    •  Name of the regulator
    • Letter number/registration number
    • Date of approval/registration

Author Bio

Qualification: CS
Location: Mumbai, Maharashtra, IN
Member Since: 23 Jan 2019 | Total Posts: 4
Mr. Karan Nagdev is an associate member of Institute of Company Secretaries of India (ICSI) with a Bachelor's degree in Commerce, pursuing Law and having extensive experience of more than 4 years in the area of Company Secretarial Compliances of various Category / Sector of Companies including liste View Full Profile

My Published Posts

More Under Company Law


  1. Sandeep says:

    I have incorporated company on 1 Jan 2019 and commenced the business yet not filled , (INC-20A not file)

    Now what to do how to do please help

    1. CS Parshva Shah says:

      Hi, can file the form with late fees now and complete the requirement. And do attach a clarification letter for filling of form post 180 days.

  2. Ayush Agarwal says:

    If in the case, a director introduces capital by way of kind and not cash, what documents are required to be attached in the given case?

  3. santhosh says:

    I have incorporated company on 10 Dec 2018 and commenced the business on the same day, Do I need to file INC 20A which is notified on 18 Dec 2018 and the form released on 26 Jan 2019

Leave a Comment

Your email address will not be published. Required fields are marked *