Reserve Unique Name (RUN) is the new Web-Form introduced by The Ministry Of Corporate Affairs to Reserve Unique Name, as another promising step towards promoting work culture in India on its 69th Republic Day.
In the spree to ease the bureaucratic fallouts in the process of incorporating a company in India, the government in affiliation with the MCA has made the following key changes:
Let’s study the initiative in details:
Register Your Company In India with ‘Zero’ Statutory Fee.
In order to promote Startups and budding Entrepreneurs throughout the nation, the government has waived off the government fee on the incorporation of the company with an authorized capital of up to 10 lakh rupees.
This notification has proved to be a blessing as
Get Your Name Approval Prior to Incorporation by RUN Web-Form
In order to reduce the time taken to process the incorporation documents, a new Web-form is introduced to speed up the mechanism of obtaining or changing a name even without getting a digital signature.
The following should be kept in mind while using the RUN Web-Form
You Don’t Require to Get Director Identification Number (DIN) Separately
The process of allotment of DIN has been re-engineered by combining it with the Spice form, if the applicant does not have a DIN at the time of its appointment.
A DIN can be applied through the following process:
DIN can now be directly applied for up to 3 directors at the time of incorporation by providing their PAN or ID proofs.
In case, a person already has a DIN at the time of incorporation of a new company, then the DIN can be manually entered in the SPICe form wherever applicable.
The new DIR3 is used by existing companies for adding a Director. The same has to be entered with the CIN of the company along with a declaration.
All these measures introduced are an attempt to reduce the overall cost of incorporation of a company in India. The initiative was launched on 26th January 2018. It is with time we will get to know is it a blessing for the startup world or a blessing in disguise.
(Author Kushaj Gupta has Has an impassioned zeal for penning his untamed thoughts. He likes to explore different realms of the technology-driven business world along with a legal touch. Currently, he is associated with StartUpSection (http://startupsection.com) which is currently dealing in Company Registration in India and other associated activities.)