On the occasion of 69th Republic Day, Government of India makes starting a business easier by launching RUN (Reserved Unique Name) service with a surprise that there will be “Zero Incorporation Fee” for all Companies with Authorized Capital up to Rupees Ten Lakhs. An applicant seeking reservation of name for a proposed Company or an Existing Company seeking to change its name shall apply for reservation through RUN Service which shall then be processed by the Central Registration Centre (CRC).
Although this service has made incorporation easier and time saving but still it has its own pros and cons and professionals are still facing difficulties with this. Following are the pros and cons of newly introduced RUN Service.
For professionals like us, this surprise of Government has become a major penalty now because most of the names are getting rejected by CRC without quoting a solid reason and this makes the entire procedure lengthy again as after rejection applicants has to apply with a fresh application by paying reserving fee again.
Hence to avoid rejection of the name it is therefore advisable to read Companies (Incorporation) Rules, 2014 and to conduct their own name and Trade Mark research thoroughly.
Author- CS Aarti Jain can be reached at email@example.com)