INC 20A Commencement of Business Certificate
Table of Content
What is INC 20A? and who should file INC 20A?
Companies registered after the commencement of the Companies (Amendment) Ordinance, 2018 in India and having a share capital is required to file for the commencement of business certificate before commencing any business or exercising any borrowing powers. Any company incorporated after 2nd November 2018 would be required to get a Commencement of Business Certificate.
Time Limit for Obtaining Commencement of Business Certificate.
The commencement of business certificate must be obtained within 180 days of incorporation of the company.
Know more on INC 20A Filing.
Consequences of late filing of INC 20A
As per a new amendment, INC 20A can be now filed with late fees as follows
The Government fee for obtaining Commencement of Business Certificate is as below:
| Nominal Share Capital | Fee applicable |
| Less than 1,00,000 | Rupees 200 |
| 1,00,000 to 4,99,999 | Rupees 300 |
| 5,00,000 to 24,99,999 | Rupees 400 |
| 25,00,000 to 99,99,999 | Rupees 500 |
| 1,00,00,000 or more | Rupees 600 |
If a company does not have share capital, a fee of Rs.200 would be applicable. Further, in case of late filing of application for Commencement of Business certificate, additional or higher Government fee as mentioned below would be applicable on top of the penalty / late fees for INC 20A payable.
| Period of delay | All forms |
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
| More than 90 days and up to 180 days | 10 times of normal fees |
| More than 180 days | 12 times of normal fees |
Suggested read: E-form INC 20A- Commencement of Business certificate
INC 20A Commencement of Business Certificate
What is INC 20A? and who should file INC 20A?
Companies registered after the commencement of the Companies (Amendment) Ordinance, 2018 in India and having a share capital is required to file for the commencement of business certificate before commencing any business or exercising any borrowing powers. Any company incorporated after 2nd November 2018 would be required to get a Commencement of Business Certificate.
Time Limit for Obtaining Commencement of Business Certificate.
The commencement of business certificate must be obtained within 180 days of incorporation of the company.
Know more on INC 20A Filing.
Consequences of late filing of INC 20A
As per a new amendment, INC 20A can be now filed with late fees as follows
The Government fee for obtaining Commencement of Business Certificate is as below:
| Nominal Share Capital | Fee applicable |
| Less than 1,00,000 | Rupees 200 |
| 1,00,000 to 4,99,999 | Rupees 300 |
| 5,00,000 to 24,99,999 | Rupees 400 |
| 25,00,000 to 99,99,999 | Rupees 500 |
| 1,00,00,000 or more | Rupees 600 |
If a company does not have share capital, a fee of Rs.200 would be applicable. Further, in case of late filing of application for Commencement of Business certificate, additional or higher Government fee as mentioned below would be applicable on top of the penalty / late fees for INC 20A payable.
| Period of delay | All forms |
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
| More than 90 days and up to 180 days | 10 times of normal fees |
| More than 180 days | 12 times of normal fees |
Suggested read: E-form INC 20A- Commencement of Business certificate
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