RUN (Reserve Unique Name) Web-Form
In RUN web-form, a company name can be reserved very fast and in easy way. Even digital signature is not required for the same. The person can apply for a name of his choice. There shall not any option to apply for more than one name in a form as compare to 6 name options in earlier case. Application form fee shall be Rs. 1000/- per form for reservation of name by using RUN web-form.
Procedure:
User shall first create a user account with MCA. Post logging into the MCA account, user can choose the type of company they want to register and provide one name choice and check on the company online database and LLP names at MCA portal.
Company or LLP cannot be registered with an identical or similar name to that of an existing company or existing trademark. Hence, the quick check system, even if it shows a name is available does not guarantee name approval.
The requested name would be checked by MCA personnel at the Central Registration Centre (CRC) against company, LLP and trademarks for tests of similarity. Name approval would be provided by the MCA and the applicant would be intimated through the email.
RUN (Reserve Unique Name) Form is optional. Incorporation of a company can be completed with prior name approval via web form RUN or using SPICe form.
Startups/Entrepreneurs who are sure that their company name is unique and wish to do incorporation of a company can directly file for incorporation using SPICe form, lots of time and money will be saved.
Zero Fee for Incorporation of Company
Startups/Entrepreneurs would be able to save thousand of rupees on iincorporation of a Companyfee. As Zero fees has been announced for the SPICe form, eMOA and eAOA effected from 26th January 2018 – However, stamp duty would still be applicable for incorporation as before.(Stamp duty cost will vary on the state of incorporation.)
Director Identification Number for Incorporation
DIN Application with SPICe
Any person who wants incorporation of a Companycan apply for DIN only through the SPICe form subject to maximum 3 directors at a glance. Details of Directors (whom DIN is to be allotted on incorporation) must be filled into the SPICe form along with their PAN or Passport details. In case, if a person having DIN is incorporating a new company, SPICe form must still be used and DIN can be entered where ever applicable.
DIN Application using Form DIR-3
Now DIR-3 form can be used by existing companies for adding a Director effected from 26th January 2018. The new DIR-3 form has provision of requesting the CIN of the Company to which the Director would be added and a declaration that the DIN is being obtained for adding the person as a Director to the mentioned company. It must be taken by Professionals to ensure that DIN is not wrongly obtained for a proposed Director of a new company.
Drawback on using SPICe Form:
A major drawback for using SPICe form was Startups/Entrepreneurs or Professionals were unable to obtain prior name approval and were forced to redo incorporation documentation, in case of rejection of name while using SPICe Form. By introducing a RUN web-based form for name approval, MCA has simplified the name approval process and has made it optional too.
Author is practicing Chartered Accountant and can be reach out at [email protected]
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RUN is worse than INC1. Earlier also it happened that a name showed on search but got rejected on application but for 1000 you were getting option to give 6+6 names. Now under RUN you have to pay 1000 for one name and how is this going to cut cost. I searched name under RUN and applied when it showed available and it got rejected. There is no resubmission also. So now on trial and error I have to keep on applying till name gets approved
How is this free ? Its one of current Govts marketing gimmick
Read. Thanks.
Thanks for the new addition for registration.