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About Us
The founder members of the KLS Advisors have more than 20 years of experience in Corporate Law. KLS Advisors provides advisory services for business registration, legal & regulatory services to businesses on a global level. KLS has expertise in registration of entities and business management under applicable laws in India.
KLS’s core field includes corporate legal matters and IPR-related matters such as protection of business at various levels like trademark registration, patent registration, copyright registration, and liaison with government offices.
About UsContact Info
- Gurugram: 07, 2nd Floor, Krishna Mansion, Civil Lines, Gurgaon, Haryana Delhi: 151, 1st Floor, Kakrola Housing, Metro Pillar No. 789, Dwarka Mor, Delhi
- +91-9717720616
- info@klsadvisors.in
🚀 Commencement of Business & Form INC-20A
Start Your Company’s Operations Legally and SmoothlyWhat is Commencement of Business?
Once a company is incorporated under the Companies Act, 2013, it cannot start its business activities or commence operations without fulfilling certain conditions mandated by law. Commencement of Business is a formal declaration by the company that it is ready to begin its business activities legally.Legal Requirement for Commencement of Business
- Section 10 of the Companies Act, 2013
- Rule 15 of the Companies (Incorporation) Rules, 2014
When is Commencement of Business Needed?
- It is mandatory for companies with share capital (Private and Public companies)
- It is a prerequisite before starting any business operations or exercising borrowing powers
What is Form INC-20A?
Form INC-20A is the declaration of commencement of business that companies must file with the Registrar of Companies (ROC). Filing this form confirms that the company has:- Received the subscription amount for its shares (at least 25% of the nominal value of shares applied for, fully paid up)
- Obtained a declaration from the subscribers to the memorandum confirming payment
📋 Key Points about Form INC-20A
| Feature | Details |
|---|---|
| Who files | All companies (except One Person Company) |
| When to file | Within 180 days from the date of incorporation |
| Filing mode | Online through the MCA portal |
| Documents to attach | Declaration by subscribers and directors about share subscription |
| Fee | Nil (but late filing attracts penalties) |
| Penalty for non-filing | Up to ₹5,000 and company cannot commence business |
🧭 Steps to File Form INC-20A
- Complete Subscription
- Ensure at least 25% of share value is paid by subscribers to the MOA.
- Prepare Declaration
- Directors and subscribers declare payment of share money.
- Upload Documents on MCA Portal
- Fill Form INC-20A online.
- Upload signed declaration and director’s consent.
- Submit & Obtain Acknowledgment
- Receive confirmation and file acknowledgment from ROC.
⚠️ Consequences of Non-Compliance
- The company cannot commence business or exercise borrowing powers without filing INC-20A.
- Company and officers liable to a penalty of ₹5,000.
- Delay in filing may invite further regulatory scrutiny.
🛠️ How KLS Advisors Can Help
We support your company in smooth commencement of business:- Guidance on share subscription and payments
- Drafting and notarization of subscriber declarations
- Filing Form INC-20A with MCA within deadlines
- Handling queries and compliance follow-ups with ROC
✅ Summary
Filing Form INC-20A is a mandatory legal step for companies to start business operations post-incorporation. Timely compliance safeguards your company from penalties and ensures seamless business initiation.