Does the 180-day period run from the first board meeting?
No. It is measured from incorporation under section 10A.
Companies Act & MCA
INC-20A Commencement of Business: 180-Day Compliance Checklist
Reviewed by CA Nikhil Gupta · Last reviewed 19 June 2026
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.
For 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.
Evidence 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
Incorporation certificate is not the full green signal. Check commencement declaration before business/borrowing activity.
Build your MCA compliance folderSave signed minutes, registers, attachments, SRNs and challans in one year-wise folder before filing deadlines.
Explore Compliance Guides →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
What does Section 10A deal with? ▾
It deals with commencement of business and related declaration requirements for specified companies with share capital.
Why is subscriber money evidence important? ▾
The declaration is linked to subscribers paying value of shares agreed to be taken.
Can a company borrow before Section 10A compliance? ▾
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
Page source links
Primary sources & related provisions
Statutory provisions referenced in this guide:
INC-20A commencement evidence file
Legal map: Section 10A applies to a company incorporated after the statutory cut-off and having share capital. The declaration is tied to receipt of the value of shares agreed to be taken by subscribers, and the company must also have the registered-office verification required by section 12 before commencing business or exercising borrowing powers.
Working workflow
- Confirm incorporation date, share-capital status and subscriber schedule in the memorandum.
- Trace each subscription receipt to the company's bank account and resolve short, excess or third-party remittances.
- Verify the registered-office filing and supporting occupancy evidence.
- Obtain board and professional review of the declaration and attachments.
- File INC-20A within the statutory window and retain the signed form, SRN, fee receipt and approval or resubmission trail.
Practical example
Two subscribers pay in full but a third sends money from a relative's account with no explanatory trail. The company should resolve beneficial source, authority and bank narration before the declaration. A spreadsheet stating that capital is received is not equivalent to bank and subscriber evidence.
Exam and advisory case study
The company signs a loan agreement and draws funds before filing INC-20A. The file must identify the timing and legal consequence and obtain advice on remediation; later filing should not be documented as if it preceded the borrowing event.
Questions and answers
What is the core proof?
Subscriber-wise receipt of agreed share value plus registered-office compliance and filing evidence.
Source control: use the official links already listed on this page and verify the instrument, amendment position, portal implementation and facts for the relevant date.