Commencement of Business
Commencement of Business
The Commencement of Business declaration is a mandatory filing under the Companies Act, 2013. It confirms that the subscribers to the company's Memorandum of Association have paid the agreed amount towards their shares. It also verifies that the company has a registered office address in place.
This declaration is submitted to the Registrar of Companies through Form 20A within the prescribed timeline. Once completed successfully, the company can legally begin its business operations and access borrowing facilities if required.
Starting a company is an exciting milestone, but before you begin business activities, certain legal formalities must be completed. One of the most important requirements for companies with share capital is filing the Declaration for Commencement of Business through Form 20A.
At TaxAbide, we help newly incorporated companies complete this compliance requirement accurately and on time. Our team manages the entire process, from document verification to filing with the Registrar of Companies, ensuring your business remains compliant from day one.
Who is Required to File Form 20A?
The filing requirement applies to companies incorporated with share capital. The following entities must submit the declaration:
Private Limited Companies incorporated after 2 November 2018
Public Limited Companies incorporated after 2 November 2018
Section 8 Companies having a share capital structure
If your company falls into any of these categories, filing Form 20A is essential before commencing business activities.
Why is the Commencement of Business Certificate Important?
Confirms Legal Compliance
The certificate establishes that the company has fulfilled the conditions specified under the Companies Act.
Builds Trust
Investors, banks, and other stakeholders gain confidence when a company has completed all mandatory registrations and declarations.
Enables Business Operations
Companies cannot legally start operations or exercise borrowing powers without completing this requirement.
Timeline for Filing Form 20A
Companies must file the declaration within 180 days from the date of incorporation. Missing this deadline may attract penalties and other regulatory consequences.
Companies Exempt from Filing Form 20A
Companies incorporated before 2 November 2018
Companies established without share capital
Consequences of Non-Compliance
Restriction on business activities and borrowing powers
Penalty of Rs. 50,000 on the company
Rs. 1,000 per day penalty on officers in default
Risk of company strike-off by ROC
Documents Required for Form 20A Filing
Bank statement showing share subscription money
Proof of registered office address
RBI approval or registration certificate (if applicable)
Board resolution authorising filing
Directors’ declaration of subscription funds
Process for Filing Form 20A
Step 1: Review Company Details
We collect and verify incorporation details of your company.
Step 2: Document Collection
Required documents are gathered and verified.
Step 3: Preparation of Form 20A
Form is prepared accurately to avoid errors.
Step 4: DSC and Certification
Form is digitally signed and certified by a professional.
Step 5: Submission to MCA
Form is filed with Ministry of Corporate Affairs with applicable fees.
Step 6: Acknowledgement
SRN is generated and filing acknowledgement is shared.
Why Choose TaxAbide?
At TaxAbide, we simplify corporate compliance so you can focus on building your business.
Experienced professionals for accurate guidance
End-to-end assistance from documentation to filing
Timely filing to avoid penalties
Transparent communication throughout process
Full compliance support for other ROC and tax services
Get Started with TaxAbide
If your company has recently been incorporated and requires assistance with Commencement of Business Certificate filing, TaxAbide ensures accurate and timely filing for a smooth start to your business journey.
