Introduction
Without these certificates, you’re not a legal owner of the company.
That’s the danger of not having a valid share certificate—your ownership, rights, and dividends could vanish in a dispute. A share certificate isn’t just paper; it’s your legal armor that protects your investment, voting rights, and control in your company. Without it, you risk fraud, ownership loss, and compliance penalties.
At FilingPoint, we make sure that never happens. We prepare and issue your share certificates legally, accurately, and 100% ROC-compliant—giving you peace of mind, security, and complete control over your company ownership. With FilingPoint, your shares are protected, your rights are safe, and your compliance is effortless.
Legal Requirement for Issuing Share Certificates
Issuing share certificates is not optional—it’s a mandatory compliance requirement under Section 56 of the Companies Act, 2013, and the related MCA (Ministry of Corporate Affairs) Rules.
Timelines to Remember:
- Within 2 months from incorporation—for the first subscribers to the Memorandum.
- Within 2 months of share allotment—when new shares are allotted to shareholders.
- Within 1 month of transfer or transmission—when shares are transferred from one person to another.
Missing any of these deadlines is treated as non-compliance and can attract penalties.
FilingPoint ensures your company meets all these legal timelines without errors or delays.
Importance of Timely Issuance of Share Certificates
Timely issuance of share certificates is more than a statutory formality — it’s a foundation of trust, legality, and transparency.
- Builds trust between the company and shareholders.
- Provides legal recognition of ownership and voting rights.
- Maintains company credibility before investors, auditors, and regulators.
- Promotes transparency and professionalism in company governance.
FilingPoint assists you in tracking deadlines, issuing certificates promptly, and maintaining a perfect statutory record.
Penalties for Not Issuing Share Certificates
Non-compliance under Section 56(6) of the Companies Act, 2013 can lead to serious legal and financial consequences:
- Monetary penalties on both the company and responsible officers.
- Reputational damage in the eyes of investors, auditors, and banks.
- Legal exposure for directors and company secretaries.
FilingPoint helps your business stay safe from such penalties by ensuring proactive ROC monitoring and professional documentation support.
Impact on Shareholders and Company Operations
Failure to issue share certificates on time affects not only compliance but also the company’s internal and external credibility.
- Shareholders lose proof of ownership, making transfers or loans difficult.
- Legal disputes can arise over ownership and voting rights.
- Audits and funding rounds become complicated due to missing proof of shareholding.
FilingPoint eliminates these risks by providing accurate, verified, and timely issuance services that strengthen your company’s legal standing.
Common Reasons for Delay in Issuance
Most delays happen not because companies don’t care — but because they’re unaware or unprepared.
Common causes include:
- Lack of awareness about legal timelines.
- Incomplete or missing documents and registers.
- Delay in board approvals or meetings.
FilingPoint identifies and corrects these internal compliance gaps quickly — ensuring your business never misses a statutory deadline.
FilingPoint’s Role in Compliance Management
When it comes to share certificates and ROC filings, FilingPoint is your reliable partner in legal compliance and accuracy.
We provide:
- Expert support in drafting, verification, and issuance of share certificates.
- Continuous ROC tracking and legal documentation updates.
- Support for startups, private limited companies, and LLPs to stay 100% compliant.
- Assurance of accuracy, legal protection, and stress-free compliance — always on time.
With FilingPoint, you can focus on growing your business while we ensure your ownership stays legally secure.
Conclusion: Protect Your Ownership Before It’s Too Late
Failure to issue share certificates on time can lead to serious legal, financial, and reputational damage.
Timely compliance protects both the company and its shareholders, ensuring a clear record of ownership and corporate trust.
FilingPoint makes the entire process easy, fast, and error-free — from verification to ROC filing.Stay compliant, stay confident, and ensure your ownership is always protected with FilingPoint — your trusted partner in corporate compliance.