{"id":3180,"date":"2026-09-21T16:50:41","date_gmt":"2026-09-21T11:20:41","guid":{"rendered":"https:\/\/khannaandassociates.com\/blog\/?p=3180"},"modified":"2026-09-21T16:50:43","modified_gmt":"2026-09-21T11:20:43","slug":"inc-20a-filing-penalty-2026","status":"publish","type":"post","link":"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/","title":{"rendered":"What Happens If You Miss INC-20A Filing? Commencement of Business Rules &amp; Penalties 2026"},"content":{"rendered":"\n<p><strong>INC-20A filing penalty<\/strong> is one of the most misunderstood \u2014 and costliest \u2014 compliance traps facing newly incorporated Indian companies in 2026. Every year, thousands of promoters, startup founders, and foreign investors incorporating companies in India unknowingly skip this mandatory declaration, triggering ROC action, company strike-off, and steep financial penalties they never anticipated. Whether you are an Indian entrepreneur in Jaipur, a Rajasthan-based startup, or an overseas investor setting up a subsidiary in India, this guide will tell you exactly what INC-20A is, what happens when you miss it, and how to fix it \u2014 before it becomes an irreversible problem.<\/p>\n\n\n\n<p>At <a href=\"https:\/\/khannaandassociates.com\/\">Khanna &amp; Associates<\/a>, ranked among the <strong>best law firms in Jaipur<\/strong>, our senior advocates handle MCA compliance, company formation, and corporate dispute resolution for Indian and international clients daily. We also serve clients through our network in Dehradun and across India as a recognised <strong>top law firm in India<\/strong> for corporate legal services.<\/p>\n\n\n\n<p>For the MCA official filing portal, visit <a href=\"https:\/\/www.mca.gov.in\" target=\"_blank\" rel=\"noopener\">mca.gov.in<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"825\" height=\"1024\" src=\"https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-825x1024.png\" alt=\"INC-20A\" class=\"wp-image-3181\" srcset=\"https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-825x1024.png 825w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-242x300.png 242w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-768x953.png 768w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-1237x1536.png 1237w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-1650x2048.png 1650w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd-1200x1490.png 1200w, https:\/\/khannaandassociates.com\/blog\/wp-content\/uploads\/2026\/09\/Gemini_Generated_Image_x9ddhex9ddhex9dd.png 1856w\" sizes=\"(max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 984px) 61vw, (max-width: 1362px) 45vw, 600px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#What_Is_INC-20A_%E2%80%94_Complete_Definition_Overview\" >What Is INC-20A? \u2014 Complete Definition &amp; Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#Legal_Framework_Regulations_in_India\" >Legal Framework &amp; Regulations in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#Key_Legal_Insights_%E2%80%94_Penalties_Consequences_Compliance_Rules\" >Key Legal Insights \u2014 Penalties, Consequences &amp; Compliance Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#Common_Mistakes_Legal_Challenges_%E2%80%94_Indian_Foreign_Clients\" >Common Mistakes &amp; Legal Challenges \u2014 Indian &amp; Foreign Clients<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#Expert_Tips_from_Leading_Legal_Advisors_at_Khanna_Associates\" >Expert Tips from Leading Legal Advisors at Khanna &amp; Associates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#H2_Conclusion_%E2%80%94_Act_Now_Before_ROC_Acts_Against_You\" >H2: Conclusion \u2014 Act Now Before ROC Acts Against You<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/#%E2%9D%93_FAQ_SECTION\" >\u2753 FAQ SECTION<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_INC-20A_%E2%80%94_Complete_Definition_Overview\"><\/span>What Is INC-20A? \u2014 Complete Definition &amp; Overview<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>INC-20A is a statutory declaration filed with the <strong>Ministry of Corporate Affairs (MCA)<\/strong> under <strong>Section 10A of the Companies Act, 2013<\/strong>. It is a formal &#8220;Commencement of Business&#8221; certificate that every company incorporated in India on or after <strong>2nd November 2018<\/strong> must submit before it starts any business activity or exercises any borrowing powers.<\/p>\n\n\n\n<p>Simply put \u2014 you have registered your company, received your CIN (Corporate Identity Number), but you cannot legally do business until you file INC-20A and the ROC accepts it. This rule was introduced to curb the practice of shell companies and ensure that only genuinely operational companies exist on MCA records.<\/p>\n\n\n\n<p>The declaration confirms two things: first, that every subscriber to the memorandum has paid the full value of shares they agreed to take; and second, that the company has filed a verification of its registered office address under Section 12.<\/p>\n\n\n\n<p><strong>As a <a href=\"https:\/\/www.khannaandassociates.com\/Best%20Law%20Firm%20In%20jaipur.html\">law firm in Jaipur<\/a> advising companies across India, we consistently see INC-20A overlooked<\/strong> \u2014 especially by first-time founders and foreign nationals who assume registration alone is sufficient to begin operations.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Framework_Regulations_in_India\"><\/span>Legal Framework &amp; Regulations in India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The governing provision is <strong>Section 10A, Companies Act 2013<\/strong>, inserted by the Companies (Amendment) Ordinance, 2018. The implementing rule is <strong>Rule 23A of the Companies (Incorporation) Rules, 2014<\/strong>.<\/p>\n\n\n\n<p><strong>Key legal facts every director must know:<\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Timeline:<\/strong> INC-20A must be filed within <strong>180 days<\/strong> of the date of incorporation.<\/li>\n\n\n\n<li><strong>Who must file:<\/strong> All companies incorporated on or after 2nd November 2018 \u2014 private limited, public limited, OPC, and Section 8 companies. LLPs are exempt.<\/li>\n\n\n\n<li><strong>What to attach:<\/strong> A bank statement evidencing that subscribers have deposited their share subscription money.<\/li>\n\n\n\n<li><strong>Platform:<\/strong> MCA21 portal (mca.gov.in) using the company&#8217;s director login.<\/li>\n\n\n\n<li><strong>Government fee:<\/strong> Depends on authorised share capital \u2014 ranges from \u20b9200 to \u20b9600.<\/li>\n<\/ul>\n\n\n\n<p><strong>Our firm&#8217;s practice areas directly related to this compliance include:<\/strong><\/p>\n\n\n\n<p>For <strong><a href=\"https:\/\/www.khannaandassociates.com\/company-formation-setup-business-in-india.html\">Company Formation &amp; Setup Business in India<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/corporate-compliance.html\">Corporate Compliance<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/corporate-documentation-html\">Corporate Documentation<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/setting-up-business-in-india.html\">Setting Up Business in India<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/commercial-and-corporate-transactions.html\">Commercial and Corporate Transactions<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/business-law.html\">Business Lawyers<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/foreign-direct-investments.html\">Foreign Direct Investments<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/due-diligence-lawyers-jaipur.html\">Due Diligence Lawyers Jaipur<\/a><\/strong>, <strong><a href=\"https:\/\/www.khannaandassociates.com\/contract-drafting.html\">Contract Drafting<\/a><\/strong>, and <strong><a href=\"https:\/\/www.khannaandassociates.com\/startups-legal-services.html\">Startup &amp; Venture Capital<\/a><\/strong> \u2014 all of which directly intersect with post-incorporation compliance obligations like INC-20A.<\/p>\n\n\n\n<p>Foreign companies entering India through FDI routes must additionally ensure FEMA compliance and RBI reporting alongside INC-20A. Our <strong><a href=\"https:\/\/www.khannaandassociates.com\/international-trade-legal-services.html\">International Trade &amp; Investment<\/a><\/strong> and <strong><a href=\"https:\/\/www.khannaandassociates.com\/fintech-legal-services.html\">FinTech &amp; Digital Payments<\/a><\/strong> teams handle these cross-jurisdictional layers seamlessly.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Legal_Insights_%E2%80%94_Penalties_Consequences_Compliance_Rules\"><\/span>Key Legal Insights \u2014 Penalties, Consequences &amp; Compliance Rules<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is where most companies \u2014 and many junior compliance officers \u2014 get blindsided.<\/p>\n\n\n\n<p><strong>Penalty for non-filing of INC-20A (2026):<\/strong><\/p>\n\n\n\n<ul>\n<li><strong>Company:<\/strong> Minimum penalty of \u20b950,000<\/li>\n\n\n\n<li><strong>Every officer in default (Director):<\/strong> \u20b91,000 per day for each day of default \u2014 up to a maximum of \u20b91,00,000 per officer<\/li>\n\n\n\n<li><strong>ROC can initiate strike-off:<\/strong> Under Section 248, the Registrar may remove the company&#8217;s name from the register if INC-20A is not filed, treating the company as a dormant\/defunct entity<\/li>\n\n\n\n<li><strong>Bank accounts frozen:<\/strong> Companies cannot legally operate bank accounts or execute financial transactions before INC-20A is filed<\/li>\n\n\n\n<li><strong>No borrowing:<\/strong> Section 10A explicitly prohibits borrowing of any kind prior to filing<\/li>\n<\/ul>\n\n\n\n<p><strong>Real Example:<\/strong> A Jaipur-based e-commerce startup incorporated in February 2024 began accepting vendor payments without filing INC-20A. By August 2024, a ROC inspection flagged the non-compliance. The three directors collectively faced penalties exceeding \u20b92,40,000, and the company had to file a compounding application \u2014 a costly, time-consuming process that could have been avoided entirely.<\/p>\n\n\n\n<p><strong>For international clients:<\/strong> If your Indian subsidiary misses INC-20A and gets struck off, reinstating the company requires a full <strong>NCLT application<\/strong> under Section 252 \u2014 an expensive and uncertain process. Our <strong><a href=\"https:\/\/www.khannaandassociates.com\/nclt-representation.html\">NCLT Cases<\/a><\/strong> team at Khanna &amp; Associates regularly handles such revival petitions.<\/p>\n\n\n\n<p><strong>The MCA has also linked INC-20A defaults to DIN (Director Identification Number) deactivation<\/strong> \u2014 meaning a director marked as defaulter on one company may face restrictions across all companies they serve.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_Legal_Challenges_%E2%80%94_Indian_Foreign_Clients\"><\/span>Common Mistakes &amp; Legal Challenges \u2014 Indian &amp; Foreign Clients<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Mistake 1 \u2014 Assuming registration = permission to operate.<\/strong><br>Many founders, especially first-timers, believe a Certificate of Incorporation is sufficient to begin business. It is not. INC-20A is a separate, mandatory post-incorporation step.<\/p>\n\n\n\n<p><strong>Mistake 2 \u2014 No bank account opened, no bank statement available.<\/strong><br>INC-20A requires a bank certificate or statement confirming subscriber share deposits. Companies that delay opening their bank account cannot file INC-20A even if they want to.<\/p>\n\n\n\n<p><strong>Mistake 3 \u2014 Foreign subscribers facing KYC delays.<\/strong><br>Foreign nationals subscribing to shares in an Indian company often face RBI and FEMA-related bank processing delays, pushing the 180-day INC-20A deadline into danger zone. Early legal planning is essential.<\/p>\n\n\n\n<p><strong>Mistake 4 \u2014 Director DIN not active or DSC expired.<\/strong><br>INC-20A must be digitally signed. Many directors discover their DSC (Digital Signature Certificate) has expired only when attempting to file \u2014 losing valuable compliance time.<\/p>\n\n\n\n<p><strong>Mistake 5 \u2014 Ignoring ROC notices.<\/strong><br>ROC sends show-cause notices via email before striking off companies. These notices are often missed if the company&#8217;s email on MCA21 is inactive or incorrect.<\/p>\n\n\n\n<p><strong>How Khanna &amp; Associates prevents all of the above:<\/strong> We assign a <strong>dedicated corporate compliance manager<\/strong> to every client post-incorporation, track all MCA deadlines proactively, handle DSC renewals, coordinate subscriber bank deposits, and ensure INC-20A is filed well within the 180-day window \u2014 with zero stress for the client.<\/p>\n\n\n\n<p>As the <strong>best law firm in Jaipur<\/strong> and a leading <strong>top law firm in India<\/strong>, our post-incorporation compliance package covers INC-20A, registered office verification, PAN\/TAN registration, GST enrolment, and MSME Udyam registration \u2014 all in one integrated service.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expert_Tips_from_Leading_Legal_Advisors_at_Khanna_Associates\"><\/span>Expert Tips from Leading Legal Advisors at Khanna &amp; Associates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Tip 1 \u2014 File INC-20A within 90 days, not 180.<\/strong><br>The 180-day window is the legal outer limit \u2014 not a comfortable deadline. Bank delays, DSC issues, and CA certifications take time. File by Day 90 as a standard practice.<\/p>\n\n\n\n<p><strong>Tip 2 \u2014 Open a current account within 30 days of incorporation.<\/strong><br>Share subscription money must reflect in the company&#8217;s bank account. Delayed bank account opening directly delays INC-20A and pushes you toward penalty territory.<\/p>\n\n\n\n<p><strong>Tip 3 \u2014 For FDI companies, initiate RBI FCGPR filings in parallel.<\/strong><br>Foreign investment reporting and INC-20A are separate obligations with different timelines. Both must be completed. Missing either creates compounding compliance exposure.<\/p>\n\n\n\n<p><strong>Tip 4 \u2014 Never commence operations verbally or informally.<\/strong><br>Even sending a single invoice, entering a vendor agreement, or hiring an employee before INC-20A constitutes &#8220;commencement of business&#8221; \u2014 exposing directors to personal liability.<\/p>\n\n\n\n<p><strong>Tip 5 \u2014 Maintain a corporate compliance calendar from Day 1.<\/strong><br>INC-20A is just the first compliance obligation. After it comes ROC annual filings, director KYC, board meeting minutes, and financial statement filings. A compliance calendar managed by experienced lawyers prevents cumulative defaults.<\/p>\n\n\n\n<p><strong>Tip 6 \u2014 If you&#8217;ve already missed the deadline, act immediately.<\/strong><br>Late filing with additional MCA penalty payment is far cheaper and faster than ROC strike-off and NCLT revival. Our <a href=\"https:\/\/www.khannaandassociates.com\/corporate-compliance.html\">corporate compliance<\/a> team can file late INC-20A with condonation within days.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"H2_Conclusion_%E2%80%94_Act_Now_Before_ROC_Acts_Against_You\"><\/span>H2: Conclusion \u2014 Act Now Before ROC Acts Against You<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Missing the <strong>INC-20A commencement of business filing<\/strong> is not a minor administrative oversight \u2014 it is a statutory violation that exposes your company to strike-off, your directors to personal financial penalties, and your entire business plan to legal paralysis. In 2026, with MCA&#8217;s automated compliance monitoring and AI-driven ROC inspections becoming sharper, the window for undetected non-compliance has narrowed significantly.<\/p>\n\n\n\n<p>The solution is simple: file early, file correctly, and partner with legal experts who track these obligations for you.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/khannaandassociates.com\/\">Khanna &amp; Associates<\/a><\/strong> \u2014 recognised as the <strong>best law firm in Jaipur<\/strong> and a premier <strong>top law firm in India<\/strong> \u2014 provides end-to-end corporate compliance support for Indian startups, established businesses, NRIs, and foreign companies entering the Indian market. From incorporation in Jaipur, Dehradun, and pan-India to post-incorporation compliance, contract drafting, FDI structuring, and NCLT representation, our senior advocates deliver authoritative legal guidance with measurable results.<\/p>\n\n\n\n<p><strong>Meet our senior advocates<\/strong> \u2014 <a href=\"https:\/\/khannaandassociates.com\/\">Visit Khanna &amp; Associates<\/a> and speak directly with our corporate law team today.<\/p>\n\n\n\n<p>\ud83d\udccd <strong>Khanna &amp; Associates<\/strong><br>47 SMS Colony, Shipra Path, Mansarovar, Jaipur, Rajasthan 302020<br>\ud83d\udcde <strong>+91-9461620007<\/strong><br>\ud83d\udce7 <strong><a href=\"mailto:info@khannaandassociates.com\">info@khannaandassociates.com<\/a><\/strong><br>\ud83c\udf10 <strong><a href=\"http:\/\/www.khannaandassociates.com\">www.khannaandassociates.com<\/a><\/strong><\/p>\n\n\n\n<p><em>Don&#8217;t wait for a ROC notice. Contact us today and secure your company&#8217;s legal standing.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%E2%9D%93_FAQ_SECTION\"><\/span>\u2753 FAQ SECTION<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Q1. What is the deadline to file INC-20A after company incorporation?<\/strong><br>INC-20A \u2014 the declaration for commencement of business \u2014 must be filed within 180 days from the date of incorporation of the company. Missing this deadline exposes both the company and its directors to MCA penalties, and risks the company being struck off the Register of Companies by the Registrar.<\/p>\n\n\n\n<p><strong>Q2. What is the penalty for not filing INC-20A in 2026?<\/strong><br>Under the Companies Act, 2013, the company faces a minimum penalty of \u20b950,000, while every director or officer in default is liable to pay \u20b91,000 per day of default, capped at \u20b91,00,000 per officer. In serious cases, the ROC may also initiate compulsory strike-off proceedings against the non-compliant company.<\/p>\n\n\n\n<p><strong>Q3. Can a company start business operations without filing INC-20A?<\/strong><br>No. Section 10A of the Companies Act, 2013 explicitly prohibits any company incorporated after 2nd November 2018 from commencing business, exercising borrowing powers, or entering commercial transactions until INC-20A is successfully filed and acknowledged on the MCA portal. Doing so constitutes a legal violation.<\/p>\n\n\n\n<p><strong>Q4. What documents are required to file INC-20A?<\/strong><br>The primary document required is a bank statement or certificate confirming that every subscriber to the Memorandum of Association has deposited the full value of shares they agreed to take. Additionally, the company must have filed its registered office verification. The form is filed digitally via DSC on MCA21.<\/p>\n\n\n\n<p><strong>Q5. Can INC-20A be filed after the 180-day deadline has passed?<\/strong><br>Yes, late filing is possible with payment of applicable penalties. It is strongly advisable to file immediately upon realising the default \u2014 further delay escalates penalties and increases the risk of ROC strike-off action. <a href=\"https:\/\/khannaandassociates.com\/\">Khanna &amp; Associates<\/a> can assist with late INC-20A filing, penalty payment, and compounding applications if required.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>INC-20A filing penalty is one of the most misunderstood \u2014 and costliest \u2014 compliance traps facing newly incorporated Indian companies in 2026. Every year, thousands of promoters, startup founders, and foreign investors incorporating companies in India unknowingly skip this mandatory declaration, triggering ROC action, company strike-off, and steep financial penalties they never anticipated. Whether you &hellip; <a href=\"https:\/\/khannaandassociates.com\/blog\/inc-20a-filing-penalty-2026\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What Happens If You Miss INC-20A Filing? Commencement of Business Rules &amp; Penalties 2026&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4025],"tags":[],"_links":{"self":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/3180"}],"collection":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/comments?post=3180"}],"version-history":[{"count":1,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/3180\/revisions"}],"predecessor-version":[{"id":3182,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/posts\/3180\/revisions\/3182"}],"wp:attachment":[{"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/media?parent=3180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/categories?post=3180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/khannaandassociates.com\/blog\/wp-json\/wp\/v2\/tags?post=3180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}