New Company? ₹1 Delay Rule That Can Shut You Down

When you register a new private company in India, founders must deposit their share subscription money into the company's bank account within strict deadlines — 180 days for INC-20A filing, 30 days for share certificates, and more. Missing these deadlines can mean penalties or even company closure.

Here's what happened: Indian company law requires every new private company to file Form INC-20A within 180 days of incorporation, proving that founders have deposited their full share subscription amount into the company's bank account.. Share certificates must be issued to all founding subscribers within 30 days of share allotment, and failure to comply attracts a daily penalty of ₹500 per certificate under the Companies Act 2013.. Directors must disclose their interests via MGT-4, MGT-5, and MGT-6 forms within 30 days of the company's first board meeting, failing which they face personal fines of up to ₹1 lakh each..

What you should do: Check your company's INC-20A filing status on the MCA21 portal (mca.gov.in) immediately if your company was incorporated in the last 180 days — non-filing blocks all business activity and borrowing.. Verify that your founders' share subscription money was transferred as a proper bank credit (not cash or personal transfer) before the INC-20A was or will be filed — a wrong payment mode can invalidate the declaration.. Confirm that share certificates were issued within 30 days of allotment and that all director interest disclosure forms (MGT-4, MGT-5, MGT-6) were filed after the first board meeting — late filing still attracts penalties even after the deadline..

If you missed the INC-20A 180-day window, file it with the late fee immediately — the Registrar of Companies sends a strike-off notice only after a further grace period, and compounding the offence is far cheaper than re-incorporating.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.