ICSI Urges MCA to Introduce Time-Bound Refunds for Company, LLP Incorporation Fees After Rejected Applications:

The Institute of Company Secretaries of India (ICSI) has urged the Ministry of Corporate Affairs (MCA) to introduce a time-bound system for refunding fees paid for company and LLP incorporation applications that are rejected.

In a representation dated August 28, 2026, ICSI President Pawan G. Chandak highlighted the difficulties faced by applicants when incorporation applications are rejected due to procedural, documentation or technical issues. The institute said that in such cases, the incorporation does not take place, but the filing fees, registration charges and applicable stamp duty paid through the MCA portal remain blocked.

ICSI said applicants are often required to make the full payment again when they submit a fresh application after correcting the deficiencies. This, it said, leads to duplication of costs even though the earlier incorporation application did not result in any registration.

The institute has requested the MCA to consider refunding the amount paid for incorporation within a prescribed and reasonable time when an application is rejected. According to ICSI, such a mechanism would provide relief to genuine applicants and reduce the financial burden caused by repeated payments.

ICSI also said that timely refunds would encourage applicants to correct errors and re-submit their applications quickly, helping reduce delays in the incorporation process. A clear and time-bound refund mechanism would also increase stakeholders’ confidence in the MCA21 system and support the government’s Ease of Doing Business and Ease of Compliance initiatives.