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.
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.
| 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. |
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.
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.