Non- Filing of INC20A

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Abhay salunkhe

86 Points Posted on 17 August 2023

My Sec 8 company incorporated on May 2022, i started getting donations in the bank from may onwards. But in the process i forgot to file the Form INC 20A. Now when i search on google for penalties it is showing around 50000 and 1000 per day to all directors. Is there any way i can avoid that.

Replies (2)

Quick Summary

If you've missed the 180-day deadline to file Form INC-20A for your Section 8 company, you're facing potential penalties of ₹50,000 for the company and ₹1,000 per day for directors. The MCA portal won't allow late filing directly. Your best course of action is to file a petition with the Regional Director for condonation of delay, seeking permission to file late and have penalties waived. While waiver isn't guaranteed, a reasonable cause can lead to relief.

Aashok Kumar Sharma

Finance/Compliance Consultant

77979 Points Posted on 15 August 2025

Hi Abhay,

About the non-filing of Form INC-20A (Declaration for commencement of business for companies), here’s what you need to know:

Key Points about INC-20A:

Every company incorporated under Companies Act, 2013 (including Section 8 companies) must file INC-20A within 180 days of incorporation.
This form declares that the company has received the minimum subscripttion amount (e.g., share capital or donations for Section 8).

Consequences of Non-Filing:

Penalties are heavy:
- ₹50,000 fine on the company.
- ₹1,000 per day fine on every director from the due date of filing till actual filing.
The MCA portal currently does not allow filing INC-20A after the due date (180 days).

What Can You Do Now?

File an appeal or petition with Regional Director (RD):
- You can apply for condonation of delay with the RD under Section 460 of Companies Act.
- This is to seek permission to file INC-20A late and waive penalties.
File INC-20A via RD order:
- Once RD condones the delay, you can file INC-20A with RD’s approval.
Immediate Steps:
- Prepare explanation for delay (e.g., unawareness, pandemic-related issues).
- Consult a Company Secretary or legal expert to draft the appeal.

Can penalties be waived completely?

It depends on RD’s discretion. Courts and RD often grant relief if there is a reasonable cause.

Summary:

Situation	Action
INC-20A not filed within 180 days	File condonation petition with RD
Penalty imposed	May get waived on genuine grounds
Without RD approval	Cannot file on MCA portal anymore

Aashok Kumar Sharma

Finance/Compliance Consultant

77979 Points Posted on 06 November 2026

Honest position: the penalty can't be avoided, but exposure can be contained.

• Sec 10A: the company is liable to Rs 50,000, and each officer in default to Rs 1,000 a day, capped at Rs 1 lakh.

• The Sec 446B half-penalty relief is not available: a Sec 8 company is excluded from the definition of "small company" (Sec 2(85)).

• Steps:

1. File INC-20A now, with additional fee. Confirm that the subscripttion money is reflected in the bank statement.

2. Then file an adjudication application suo motu under Sec 454 (Form ADJ). Self-reporting and prompt rectification are mitigating factors the adjudicating officer considers.

3. File any pending AOC-4/MGT-7 as well. ROC can strike off under Sec 10A(2) for non-filing, so act before an STK-1 notice arrives.

• Donations received are not affected, but 12A/80G registration and CSR-1 eligibility need the company to be compliant. Regularise before renewal.

• Check whether a current MCA facilitation scheme covers INC-20A before filing. CCFS-2026 closed on 15 September 2026.