Starting a company sounds exciting. You register it, get
your Certificate of Incorporation, maybe even tell your friends “bhai company
khol li.” But then suddenly someone tells you “INC-20A file kiya kya?”
And that’s where confusion starts.
1 What is Form INC-20A
It’s basically you telling the government that your shareholders have actually
put money into the company. Without this, your company exists only on paper and
you cannot legally start business.
2 Who needs to file it
Only companies with share capital. If your company has share capital, you have
to file this.
3 When do you file it
Within 180 days from incorporation. It sounds like enough time, but many people
still miss it.
4 What if you don’t file it
You cannot start business legally. On top of that, there is penalty and even
risk of strike off.
5 Is it only for private companies
No, it applies to both private and public companies.
6 What proof is needed
You need a bank statement of the company showing that shareholders have
actually transferred the money.
7 Can I file it without opening a bank account
No, because without a bank account you cannot show proof of money received.
8 What if shareholders haven’t paid yet
Then wait. Filing without actual payment is risky and can create problems
later.
9 Who signs the form
A director signs it and a practicing CA, CS or CMA certifies it.
10 Is professional certification compulsory
Yes, its mandatory
11 How much is the government fee
It depends on authorized capital. Usually it is manageable, but penalties are
not.
12 Can I revise it later
No, once filed it cannot be revised, so check everything properly before
submitting.
13 Is it required for old companies
No, only companies incorporated after this rule came into effect need to file
it.
14 What if I file after 180 days
You can still file, but you will have to pay penalty.
15 Can ROC reject it
Yes, if details are incorrect or documents are not proper.
16 Is it required for LLP
No, LLPs do not need to file this form.
17 What if there are multiple subscribers
Then money must be received from all subscribers. Even one missing can create
an issue.
18 Can I accept cash from shareholders
It is better to use banking channels to keep proper proof.
19 What happens after filing
Once you file the form, it usually gets automatically approved and your company
can start business operations properly.
20 One real advice
Do not ignore this form. Many people focus on branding and other things but
delay this and later face unnecessary stress.
INC-20A is not complicated, it just needs attention at the
right time. If you handle it properly, things stay smooth. If you delay it, it
becomes a problem you could have easily avoided.
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