INC-20A: Penalty and strike-off if you miss the 180-day deadline
Every company with share capital must file Form INC-20A within 180 days of incorporation. Miss the deadline and you face ₹50,000 company penalty plus ₹1,000/day per director (capped at ₹1,00,000 each), plus strike-off risk. Here's what to do and by when.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Section 10A of the Companies Act, 2013 (as amended by Companies (Amendment) Act, 2019) and Rule 23A of the Companies (Incorporation) Rules, 2014 — Effective: 2 November 2018. Source: MCA) circulars and adjudication orders under Section 454. Last reviewed by CA Harun Raaj: July 2026.
Every private limited company with share capital faces a single, non-negotiable filing deadline: Form INC-20A, the declaration of commencement of business, within 180 days of incorporation. Miss it, and your company cannot legally do business, cannot borrow, and exposes every director to a personal penalty starting at ₹1,000 per day. Here is what INC-20A is, who must file it, what happens if you are late, and how to file it correctly.
What INC-20A is
Form INC-20A is the statutory declaration of commencement of business under Section 10A of the Companies Act, 2013, prescribed by Rule 23A of the Companies (Incorporation) Rules, 2014.
It applies to every company incorporated on or after 2 November 2018 that has a share capital. If your company was incorporated before that date, or if it has no share capital (e.g. a section 8 company), Section 10A does not apply.
The form serves one core purpose: to confirm that subscription money has actually been paid in and that the company is ready to commence business.
The 180-day window and what must be true before filing
Under Section 10A(1)(a), a director must file INC-20A within 180 days of the date of incorporation. Two conditions must be met before you can file:
- Every subscriber to the memorandum has paid the value of their share subscription. The money must be credited to the company bank account. You attach a bank statement as proof.
- The company has filed verification of its registered office (Form INC-22) where this was not completed at incorporation.
The form itself must be digitally certified by a practising CA, CS, or CMA.
Three consequences of missing the 180-day deadline
Key point: The Section 10A(2) penalty is automatic and non-waivable — it is imposed by the Registrar through adjudication, with no amnesty or condonation mechanism available.
Penalty breakdown
Under Section 10A(2):
- The company faces a fixed penalty of ₹50,000.
- Every officer who is in default (typically the directors) faces ₹1,000 for each day the default continues, subject to a maximum of ₹1,00,000 per officer.
There is no waiver or discretion. Recent ROC adjudication orders routinely impose the full ₹50,000 on the company and stack ₹1,00,000 penalties on each director. A two-director company filing 61 days late faces total exposure of ₹50,000 + ₹1,00,000 + ₹1,00,000 = ₹2,50,000 — entirely avoidable by filing on time.
Strike-off risk
Under Section 10A(3), if the declaration is not filed within 180 days and the Registrar believes the company is not carrying on business, the Registrar may initiate strike-off proceedings under Section 248 (removal of the company's name from the register). Strike-off is a separate administrative process but represents total loss of legal status and the ability to conduct any business.
You can still file late — but the penalty clock runs
Missing 180 days does not prevent you from filing INC-20A. The form can be filed on the MCA V3 portal at any time after incorporation, with the standard government fee (calculated on authorised capital). However, there is no separate condonation application needed to file late — and more importantly, you cannot escape the Section 10A(2) penalty.
In practice: file immediately. The per-day penalty on each officer continues to accrue until you do, up to the ₹1,00,000 cap per person. Every day of delay is ₹1,000 per director.
How to file INC-20A on MCA V3
- Confirm subscription payment. Verify that subscription money has been credited to the company bank account. Download the bank statement covering the payment date.
- Log in to MCA V3 portal. Navigate to Form INC-20A.
- Enter incorporation and company details. Use your incorporation certificate and memorandum.
- Upload supporting documents: bank statement / proof of paid-up subscription; regulatory approvals if the company is in a regulated sector (RBI/SEBI/IRDAI approval for banking, securities, insurance, etc.).
- Get digital signatures. The form must be digitally signed by a director and certified by a practising CA, CS, or CMA.
- Pay the filing fee and submit. Save the SRN (system registration number) and payment challan.
- Monitor status. The ROC processes the form and issues a confirmation (usually within 5–7 working days on the V3 portal).
Worked example
XYZ Private Limited was incorporated in Delhi on 1 October 2025 with paid-up capital of ₹10 lakh and three directors. The 180-day deadline fell on approximately 30 March 2026. The company filed INC-20A on 30 May 2026 — 61 days late.
In adjudication under Section 454, the company faced:
- Company penalty: ₹50,000
- Each of the three directors: ₹1,000/day × 61 days = ₹61,000 each (all below the ₹1,00,000 cap)
- Total exposure: ₹50,000 + ₹61,000 + ₹61,000 + ₹61,000 = ₹2,33,000
All of this penalty was avoidable by filing within the 180-day window.
What HRA can do for you
If your incorporation date falls within the 180-day window or you believe you may have missed the deadline, we can:
- Verify your incorporation date and calculate your exact deadline.
- Confirm your subscription payment and prepare bank statements.
- File INC-20A end-to-end on MCA V3, including CA/CS certification.
- Prepare any regulatory approvals if your company operates in a regulated sector.
We handle INC-20A filing on a flat-fee basis; the fee covers preparation, certification, and submission. We do not cover adjudication or penalty settlement (that is handled by your CA or by appeal through the ROC), but filing promptly minimises your exposure.
I'm CA Harun Raaj. If this affects your company's compliance calendar, reach out.
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See Also
Frequently Asked Questions
What is the exact deadline for filing INC-20A after incorporation?+
Under Section 10A(1)(a) of the Companies Act, 2013, INC-20A must be filed within 180 days of the date of incorporation. The 180-day period is measured from the incorporation date shown on your certificate of incorporation.
Does INC-20A apply to every private limited company?+
No. INC-20A applies only to companies incorporated on or after 2 November 2018 that have share capital. Companies incorporated before that date, and companies without share capital (such as section 8 companies), are not subject to Section 10A.
What happens if I file INC-20A after 180 days?+
You can still file the form on MCA V3 at any time. However, under Section 10A(2), you will face an automatic penalty: ₹50,000 on the company, and ₹1,000 per day per officer in default (capped at ₹1,00,000 per officer). There is no amnesty or waiver for this penalty.
Who counts as an 'officer in default' for the Section 10A(2) penalty?+
Typically, all directors of the company. Under Section 2(60) of the Companies Act, 2013, an officer includes a director and any other person occupying the position of a director by whatever name called. Each officer is separately liable to the ₹1,000/day penalty, capped at ₹1,00,000 per person.
Can my company borrow or do business before filing INC-20A?+
No. Under Section 10A(1), until INC-20A is filed, the company cannot commence any business and cannot exercise borrowing powers. Any business or borrowing undertaken before the declaration is filed sits on shaky legal ground and may be challenged.
What documents do I need to file INC-20A?+
You must attach a bank statement or other proof that subscription money has been credited to the company bank account. If applicable, you also need verification of registered office (Form INC-22). If your company is regulated (banking, insurance, securities), you may need sectoral regulator approval.
Can the Registrar strike off my company if I miss the INC-20A deadline?+
Yes. Under Section 10A(3), if INC-20A is not filed within 180 days and the Registrar has reasonable cause to believe the company is not carrying on business, the Registrar may initiate strike-off proceedings under Section 248, removing the company's name from the register.
Is there any amnesty or condonation scheme for late INC-20A filings?+
No dedicated amnesty scheme applies to Section 10A breaches. CCFS-2026 covers annual filings (AOC-4, MGT-7) but not INC-20A. You must file the form and any penalty is assessed separately in adjudication under Section 454.
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