INC-20A Commencement of Business: 180-Day Compliance Checklist
A newly incorporated company with share capital should not start business operations or borrowings without checking Section 10A compliance. INC-20A is a startup compliance item that founders often miss.
\nFor broader context, see the Companies Act, MCA and Startup Compliance Hub.
Section 10A control
Section 10A covers commencement of business. India Code text states that specified companies incorporated after the commencement of the provision and having share capital shall not commence business or exercise borrowing powers unless required declaration conditions are met.
Use the Companies Act Related-Party Transaction Approval Checker to work through the related inputs before acting.
\nEvidence pack for founders
| Evidence | Why it matters |
|---|---|
| Subscriber share money received | Supports declaration that subscribers paid value of shares agreed to be taken. |
| Bank statement | Payment trail for subscription money. |
| Registered office verification status | Section 10A also links to registered office filing status. |
| Board authorisation | Supports form filing and authorised signatory. |
| MCA acknowledgement | Proof of timely filing. |
Practical founder checklist
- Collect subscriber money in company bank account early.
- Avoid using personal founder account for company capital receipts.
- Keep share subscription and bank evidence together.
- Do not borrow before confirming commencement compliance.
- Save SRN and filed INC-20A copy for diligence.
Finin2min warning
Official sources used
This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.
- India Code: Companies Act, 2013 — Section 10A Commencement of Business
- India Code: Companies Act, 2013 — Section 12 Registered Office in official PDF
- India Code: Companies Act, 2013 official PDF
FAQs
It deals with commencement of business and related declaration requirements for specified companies with share capital.
The declaration is linked to subscribers paying value of shares agreed to be taken.
Section 10A restricts commencement of business and exercise of borrowing powers until conditions are met.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Companies Act & MCA
- Official starting point
- www.mca.gov.in