Name Reservation Process for Company

Name Application for a Company could be made through SPICe+ Part A under New Application as well as through the Reserve Unique Name (RUN) Web Form.

RUN web-form is a web service used for reserving a name for a new company or for changing its existing name. The web service helps you verify whether the name you’ve chosen for your company is unique. Before the RUN web form was introduced, all applications concerning company names were to be made in Form INC-1.

1. Purpose of the RUN e-Form

Any applicant seeking a reservation of a proposed company or seeking to change an existing company should apply for a reservation through the RUN service. This application will then be processed by the Central Registration Centre (CRC).

The proposed name applied should not be undesirable as per the relevant provisions of the Act and the rules mentioned in it.

2. Legal Framework of the Name Reservation Service

RUN service should be used pursuant to Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014.

3. Procedure for Name Reservation of the proposed Company

a. Login to MCA Portal

This is a post-login service and existing users would need to login into their account using their credentials. New users are required to create a login account first before using the service. After login, they may click on the icon RUN (Reserve Unique Name) under the head ‘MCA Services’.

b. Documentation and Information

• Whether it is a new request or a resubmission,

• Type of company such as new company, OPC, Producer company or others,

• CIN if there is a change in a company name,

• Provide two proposed names of the company,

• Business activity of the company and other information

c. Filing of Web-Based Application and Payment of Government Fees

The government fee for the name application of a Private Limited Company is Rs. 1000/- and for a Limited Liability Partnership is Rs. 200/-. After applying, you need to pay the government fees online through a credit/debit card or NEFT. This fee is non-refundable.

d. Approval or Resubmission of Name

The MCA will process the application in 2-3 working days after submission. You can check the company name status on the MCA portal from MCA services – Track SRN/Transaction status. If MCA finds the name available, the ministry will approve the name and send the name approval letter. Otherwise, it will send an application for resubmission. In such a case, the application status will be “sent for resubmission,” and an email will be sent to the registered e-mail ID.

4. Validity of Name Reservation Form

The approved name will be reserved for 20 days from the date of approval. The applicant must file the form for incorporation within such period otherwise the name will get expired.

In a notification dated 24th December 2020, the MCA has notified that now the MCA will provide an extension of reservation of name in certain cases. Under the rule Registrar shall extend the period of a name reserved under rule 9 up to 60 days on Payment of Fees with Fees of Rs. 3000 (Maximum).

5. Checkpoints should consider before making the Name Reservation Application

a. Proper Name Search whether the Name proposed is not reserved through this link – “http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do”

b. Proper Trademark Search should be done through this link – “http://www.ipindia.nic.in/index.htm”

c. If a Company / LLP is incorporated with a similar name to the Name proposed to be applied. Then one should avoid applying for that name as the same could come for resubmission / Rejection.

d. There should be proper Prefix and suitable Suffix to the Name to be applied.

6. FAQ’s – Frequently Asked Questions related to Name Reservation of the company

1. Fees and time period of name reservation of the company?

Ans. An approved name is valid for a period as follows with Rs.1000 for each submission:

• 20 days from the date of approval (in case name is being reserved for a new company), or

• 60 days from the date of approval (in case of change of name of an existing company).

2. Is resubmission is allowed in the RUN application?

Ans. No. Users may please note that the name applied for will either be approved or rejected and no resubmission is allowed. A fresh payment of Rs.1000 has to be made for every application submitted using the RUN service.

3. What are precautions are required to be taken to avoid the rejection of names applied?

Ans. To avoid rejection of the name applied for, users are advised to be familiar with the Companies (Incorporation) Rules 2014, as amended, and conduct their own Name and Trade Mark search, the links for which are available separately on the portal, prior to submission of applications.