Section 10A: Commencement of business, etc
What this section makes a company do, step by step, with the eForms and the days each step allows. Then the section itself, quoted in full.
The procedure, step by step.
Every step in order, the days each one allows, and the eForm it files.
Commencement of Business (S.10A)
4 steps · about 31 days · INC-20A| Step | Allows | Files |
|---|---|---|
| Verify Subscription Money Received | 7 days | — |
| Obtain Bank Statement as Proof | 3 days | — |
| Pass Board Resolution | 7 days | — |
| File INC-20A with ROC | 14 days | INC-20A |
Section 10A in full.
(1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless—
(a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and
(b) the company has filed with the Registrar a verification of its registered office as provided in sub-section (2) of section 12.
(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.
(3) Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.]
Quoted from the Companies Act 2013 (Act 18 of 2013) as amended, and checked against the MCA text on 17 August 2026. Reproduction of an Act is permitted under section 52(1)(q) of the Copyright Act 1957.
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