Under the Indian Companies Act, the ‘RUN’ service, standing for ‘Reserve Unique Name,’ is a digital service provided by the Ministry of Corporate Affairs (MCA) for reserving unique names for businesses. The RUN platform caters to individuals and corporations intending to reserve a name for a new company or to modify the name of an existing one. Here are some intricate details about the RUN service:
Name Reservation: At its core, the RUN service is designed to secure a distinctive name for a company. The suggested name should strictly adhere to the naming conventions set by the MCA. These conventions include the avoidance of forbidden terminologies, infringement of trademarks, and resemblance to the names of existing companies.
Online Application: The name reservation application is lodged electronically through the MCA’s digital portal. The aspirant is required to offer the preferred name and any possible alternatives. They must also furnish other pertinent information as demanded by the system.
Processing Time: Upon receiving the name reservation application, the MCA assesses it for name availability and conformity with the naming regulations. While processing times can fluctuate, the MCA strives to expedite the name reservation process and generally completes it within a brief time span.
Name Approval: Should the proposed name fulfill the requisite conditions and remain unclaimed, the MCA grants its approval for the name reservation. The sanctioned name holds validity for a pre-defined period (typically 20 days). The applicant is expected to fulfill the incorporation or any other mandatory formalities within this stipulated timeframe.
Rejection or Resubmission: In instances where the proposed name fails to comply with the naming guidelines or is deemed inappropriate, the MCA has the authority to decline the application. The applicant is then free to resubmit a fresh application proposing an alternative name.
Change of Name: Besides reserving names for new companies, the RUN service also accommodates applications for changing the name of existing companies. The procedure mirrors that of reserving a new name. The company files an application through the digital portal and waits for the MCA to approve or reject the proposed name change.
It’s important to clarify that the RUN service strictly pertains to the name reservation process under the Companies Act in India. Other procedures and compliances related to company incorporation, such as document submission, fee payment, and statutory requirements, need to be fulfilled independently in line with the applicable rules and processes.
Applicants are strongly recommended to consult the official MCA website and its guidelines for comprehensive instructions. It’s also advised to seek expert advice to obtain precise and current information concerning the utilization of the RUN service and associated company name reservation procedures.