Forced Business Shutdown Upon Renewal Delays

Data controllers whose registration expires must immediately cease all data processing until renewal is complete—effectively forcing business shutdown since modern operations require processing customer, employee, and transaction data. This creates severe business continuity risks if renewal processes face administrative delays. Additionally, delays beyond three months trigger 5,000 penalty units with 5% monthly compounding interest (reaching 79% increase after 12 months), creating disproportionate financial burdens particularly for SMEs and startups facing cash flow challenges.