Notification — Payment of Subscription Money by Shareholders (Section 17(2))
Legal basis
Section 17(2) of the Companies Act, 2017 read with Section 510 (File No. CLD/CCD/602/19/2021)
What it does
Specifies the time, manner, and conditions for paying subscription money under Section 17(2): each subscriber must pay the amount due against their subscribed shares in cash, through a banking channel, within 30 days of the company's incorporation. On full receipt, the company must issue share certificates to the subscribers — whether in physical form or as book-entry shares. If anything prevents the company from receiving the subscription money within that window, it must report the impediment to the registrar within the same 30 days and then follow whatever direction the registrar gives.