Mistakes to Avoid While Filing e-Form INC-20A

Introduction

E-Form INC-20A is a mandatory declaration that must be filed by a company after receiving the certificate of incorporation and before starting business operations. It confirms that the company has received the agreed capital from its shareholders. Filing this form correctly is essential to avoid penalties and ensure smooth functioning.

Many startups and private limited companies make simple yet costly errors while submitting this form. In this blog, we’ll cover what mistakes to avoid, why this form matters, and how professional help can make the process easier.

What is e-Form INC-20A?

E-Form INC-20A is a declaration filed under Section 10A of the Companies Act, 2013. It must be submitted by companies having share capital. It declares that the subscribers have paid the agreed capital, and the company is ready to begin business.

Applicable to: All companies incorporated on or after 2nd November 2018 and having share capital.

You can refer the Government source: MCA Official Site – Forms

Why is Filing INC-20A Important?

• Start business operations legally: Without filing, the company is not authorized to commence business activities.
• Open a bank account in the company’s name: Banks require proof of compliance to open corporate accounts.
• Raise funds or issue shares: Investors and stakeholders need assurance of legal compliance before engagement.
• Get loans or government licenses: Regulatory approvals often necessitate proof of business commencement.

What is the Due Date for Filing INC-20A?

You must file e-Form INC-20A within 180 days from the date of incorporation.

For example: if your company was incorporated on 1st January 2025, the form must be filed by 30th June 2025.

Common Mistakes to Avoid While Filing e-Form INC-20A

1. Delay in Filing the Form: Missing the 180-day deadline can lead to additional fees and may restrict your business operations.
2. Incorrect Details of Subscribers: Entering wrong subscriber information, PAN, or amount of paid-up capital can cause rejection.
3. Not Attaching Bank Statement: A bank statement showing the credit of subscription money is mandatory. Failure to attach it leads to form rejection.
4. Non-Payment of Stamp Duty: Some states require payment of stamp duty during incorporation. If unpaid, the Registrar of Companies (ROC) may not accept INC-20A.
5. Uploading Wrong Documents: Attaching incorrect or mismatched documents like Memorandum of Association (MOA) or certificate of incorporation can delay approval.
6. No Digital Signature of Director: The form must be signed using the Digital Signature Certificate (DSC) of a director. Mistakes here cause technical rejection.
7. Not Using a Practicing Professional (if required): Although professional certification is not mandatory for all companies, in complex shareholding cases, lack of a professional’s involvement leads to errors.
8. Incorrect Filing by LLPs or Section 8 Companies: INC-20A is only for companies with share capital. Filing by Limited Liability Partnerships (LLPs) or companies without share capital is invalid.

What are the Consequences of Incorrect Filing?

For full details, refer to: MCA Penalty Provisions

How to File e-Form INC-20A Correctly?

1. Open a Company Bank Account: Ensure the capital is deposited by all subscribers.
2. Collect Bank Statement: Obtain the statement showing the amount credited as paid-up capital.
3. Fill Form INC-20A: Enter correct Corporate Identification Number (CIN), date of incorporation, and subscriber details.
4. Attach Documents: Attach the bank statement, MOA, and other required attachments.
5. Digitally Sign the Form: Use DSC of a director and professional (if applicable).
6. Submit on MCA Portal: Upload the form and pay the government fees online.

Benefits of Correct Filing

• Avoid Penalties: Timely submission saves time and money.
• Start Business Without Restrictions: Enables opening bank accounts and launching operations.
• Improves Compliance Score: Helps during audits and for applying for licenses.
• Builds Trust with Investors: Demonstrates that your company follows proper legal steps.

Real Life Example

A newly registered IT company in Pune forgot to attach the bank statement while filing INC-20A. The form was rejected, and by the time they corrected it, the 180-day period had lapsed. They ended up paying a hefty penalty and couldn’t launch their services on time. Simple mistakes like this can be avoided with timely filing and document review.

Why Professional Assistance is Helpful?

Legal professionals can ensure:

• Documents are cross-verified: Minimizes errors and omissions.
• Deadlines are not missed: Keeps the company compliant with statutory timelines.
• Accurate filing, reducing chances of rejection: Enhances the likelihood of approval on the first attempt.
• Advisory on legal compliances, especially for startups and SMEs: Provides guidance tailored to specific business needs.

Conclusion

Filing e-Form INC-20A is a simple yet vital step for any new company. Avoiding mistakes like missing deadlines, incorrect data, or wrong attachments can save time, penalties, and help launch your business confidently. With professional support and timely action, companies can stay compliant from day one.

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