Commencement of Business Meaning: Certificate, Documents, Process, and Fees

Completing the required commencement filing helps a company meet its statutory obligations and avoid preventable delays at the start of its operations. It also gives stakeholders a clearer record that the company has addressed the relevant incorporation-stage requirements.

After completing the relevant incorporation-stage compliances, you may need funds for expenses such as inventory, equipment, staffing, or day-to-day working capital. Lenders may review your company’s legal status and compliance documents when assessing a funding application. If you are planning for these business needs, you can check your pre-approved business loan offer to see whether an offer is available for your business. Any approval, loan amount, and repayment terms will depend on eligibility and assessment.

The filing supports several practical and compliance-related objectives:

• Legal compliance: Helps eligible companies meet the statutory declaration requirement under the Companies Act, 2013.
• Regulatory record: Creates a formal record of the director’s declaration and the company’s share-subscription status.
• Stakeholder confidence: Shows that the company has addressed an important incorporation-stage obligation.
• Funding readiness: Keeps a key compliance step in order when preparing documents for potential lenders or other stakeholders.

The requirement generally applies to companies incorporated on or after 2 November 2018 that have share capital. Such companies must file the commencement declaration within 180 days of incorporation.

The requirement does not apply in the same way to every business structure. For example, a limited liability partnership (LLP) is governed by a separate law and does not file Form INC-20A. Confirm the requirement for your specific entity with a qualified professional.

Prepare the documents and details required for the company’s Form INC-20A filing. Depending on the company’s circumstances and the current portal requirements, these may include:

• Form INC-20A, completed with the company’s details and declaration.
• Evidence that subscribers have paid the share capital they agreed to subscribe.
• The director’s declaration and required digital signature.
• Any supporting approval required from a sector regulator, where applicable.

Check the current MCA instructions before filing, as attachment requirements may depend on the company’s circumstances.

Completing the required filing helps establish a compliant foundation for operations. If you are also planning your initial funding, check your business loan eligibility to understand the information and paperwork that may be relevant to a funding application.

Use the MCA portal to submit Form INC-20A. Follow the latest portal instructions, as navigation and filing requirements may change.

• Sign in to the MCA portal using the company’s registered credentials. Register first if required.
• Locate Form INC-20A under the relevant company e-filing services.
• Enter the company’s details, including its CIN, and complete the declaration.
• Attach the required supporting documents and ensure the declaration is signed and verified as applicable.
• Submit the form and pay the applicable filing fee.
• Save the Service Request Number (SRN) and use it to track the submission.

The declaration must generally be filed within 180 days of incorporation for a company covered by Section 10A. Missing the deadline can lead to additional filing fees and statutory consequences. Check the filing status on the MCA portal and seek professional advice if the deadline has passed.

Companies incorporated before the relevant 2018 amendment generally do not have to file the Section 10A declaration. The requirement also does not apply to entities outside its scope, such as LLPs, which are governed by separate legislation. Exemptions can depend on the entity’s legal form and circumstances, so confirm your position with a company secretary or chartered accountant.

Section 10A of the Companies Act, 2013 provides for penalties when a company fails to file the required declaration. Penalties are Rs. 50,000 for the company and Rs. 1,000 per day for each officer in default, subject to a maximum of Rs. 1 lakh for the officer. Because penalty provisions and their application should be checked against current law, confirm the applicable amount with a company secretary before publication or action.

The Registrar of Companies may also take action where the statutory conditions are met. Do not rely on an old fee or penalty table without checking the current provisions.

The fee for filing Form INC-20A depends on the applicable MCA fee schedule and the company’s share-capital details. Any additional fee for a delayed filing may also apply. Check the current amount on the MCA portal before submitting payment.

The SEO brief lists the following base-fee bands; treat these as indicative only and verify the current fee schedule on the MCA portal before filing:

Late filing can attract additional fees. The applicable amount depends on the current fee rules and the period of delay, so confirm the figure on the MCA portal before payment.

Form INC-20A is the declaration used by companies covered by Section 10A to confirm receipt of subscription money and compliance with the relevant requirements. Submit it within the prescribed time, with the required supporting documents and signatures. Accurate filing helps reduce the risk of delays, additional fees, and other compliance issues.

Completing the commencement filing is one step in setting up your company’s operations. If you are planning to fund inventory, equipment, expansion, or day-to-day business needs, consider reviewing the available financing options alongside your compliance requirements.

Bajaj Finance Business Loan offers eligible applicants loans from Rs. 2 lakh to Rs. 80 lakh, with no collateral required. Interest rates are 14%–23.50% p.a., and repayment tenures range from 12 to 96 months, subject to eligibility, assessment, and applicable terms. You can check your pre-approved business loan offer to see whether an offer is available for your business.

• Click the 'Check Loan Offer' button to open the online application form.
• Enter basic details, including Name, PAN, Date of Birth, PIN Code, and Business details, and click 'CONTINUE'.
• Complete banking verification and continue.
• View your offer details, select the loan type — Term Loan, Flexi Dropline Loan, or Flexi Hybrid Loan — and choose the repayment tenure.
• Review the details and submit the business loan application.