The Ministry of Corporate Affairs has been constantly doing research and development in order to smoothen the process of Company Incorporation. Now, a layman with the little help of a professional can get his/her Company incorporated. Hence, in this article, we shall study about the simple process of application for name of a proposed Company to be incorporated.
Now, there are two ways via which we can apply the name, discussed as below:
First: Apply the name through RUN (Reserve Unique Name) Form and wait for the name approval letter to come. It might take 4-5 working days for approval letter or query to come. Also, the government fees for name application is Rs. 1,000/-. This option is the most preferred one.
Second: Apply the name directly through Company Incorporation SPICE Forms. However, this option is recommended only where the client is very sure that they can get the name otherwise all the efforts for incorporating the Company shall go in vain. Further, there is no additional fees of Rs. 1,000/- that needs to be borne by the client and only there will be Company incorporation fees. Additionally, it saves time as we are applying Company directly and we do not need to wait for name approval letter in this case then.
SEARCHING FOR NAME AVAILABILITY:
Once we have decided on the name, the availability of the same needs to be checked on Ministry of Corporate Affairs portal at https://www.mca.gov.in/content/mca/global/en/mca/fo-llp-services/company-llp-name-search.html and on trademark portal at https://tmrsearch.ipindia.gov.in/tmrpublicsearch/
PROCESS OF APPLICATION FOR NAME:
1. Login to the Ministry of Corporate Affairs V3 portal (https://www.mca.gov.in/content/mca/global/en/foportal/fologin.html).
2. Post login, go to MCA Services – Company e-Filing – Incorporation Services – Spice+ Form Reserve name for new Company Incorporation and the following page will open.
3. Now, in this page, select Type of Company, Class of Company, Category of Company and Sub-Category of Company. For instance, usually for incorporation of a normal private or public limited Company, following drop down needs to be selected:
New Company (Others) – Private/Public – Company limited by shares – Nongovernment Company
4. Choose industry sub class under the tab “Search and select industry sub-class” via National Industrial Classification Code. A maximum of three codes can be selected and if the application is approved, the same will be automatically shown in the main object clause of Memorandum of Association of the Company.
5. Then, type the name very carefully and attach PDF, if required.
6. Click auto check and post that, submit the application and pay the fees.
7. The name, if approved will be valid for 20 days or otherwise, a resubmission will come. Generally, re-submission comes only once and the name is rejected or approved finally if the department is satisfied by the resubmission query submission.
FREQUENTLY ASKED QUESTIONS (FAQs):
1. How to select names for application of name?
Reply: There are various website available on google which provide unique names for all business models. Also, please ensure that the proposed name is in consonance with the Rule 8 of the Companies (Incorporation) Rules and preferably, contain the objects of the Company as well like for instance, ABC Clothing Private Limited wherein the name implicit the business of the Company.
2. Is it mandatory to attach PDF in the name application form?
Reply: No, it is not mandatory to attach PDF in the name application but always, it is recommended to explain the significance of the name along with the objects proposed to be carried on in a word to pdf document. Further, in the cases where the names contains initials of the proposed promoters or a combination of their names, attach self-attested copy of PAN cards of the promoters as well
3. I want group word but that is being denied by the department?
Reply: Although, this is nowhere written legally but it happened in our case that the group word was denied registration as a part of the proposed name. However, we attached NOCs from 5 Companies being associate of the proposed Company having group word in it and the name was approved by the department.
4. Once the name is approved, can the government raise query on it again while filing for incorporation forms?
Reply: Although, it is not just to give query on name once approved but this can happen. However, the chances are very rare like 1 in 50 cases but still, it happened with one of our case.
5. If I am not able to file for incorporation forms with the time limit of 20 days, will my name expire?
Reply: The availability of name can be extended for 20-40 days, 20-60 days or 40-60 days after paying the requisite fees again.
6. What if my name expires and I want to apply for the name again. Will I get it again?
Reply: There are high chances that you will get the name but 30% chances are also there that the government might not give the name again and hence, it would always be advisable to seek extension if you are not able to apply for the Company within a span of 20 days and not let the name expire at any cost.
7. What if I have any query while name application or with respect to the resubmission remark and wants to speak to the department?
Reply: The name approval is done by the Central Registration Centre having office in Manesar (Power delegated by Ministry of Corporate Affairs) and it can be reached at 0124-4832500 and [email protected]. Additionally, you can also raise complaint at https://www.mca.gov.in/mcafoportal/userComplaintDetails.do. However, there is no public dealing available at this particular department.
Conclusion: Reserving a company name is a streamlined process thanks to the MCA’s initiatives. By understanding the RUN and SPICE+ methods, checking name availability, and following the correct application steps, you can ensure a smooth and successful name reservation for your company. Whether you are a professional or a layperson, this guide equips you with the necessary knowledge to navigate the process effectively.
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{The author i.e., Mrs. Kajal Goyal is a Company Secretary in Practice and can be reached at (M) +91-9999952595 and (E) [email protected]}
Author Bio
i AM KUPPUSWMI SIVARAMAN, Advocate Chennai I am trying to pay Rs 1000 for avalability of name of a Company but I dont know to whom I should pay this money I have an account in HDFC Bank
K Sivaraman
Chennai
9884002280