Ministry of Corporate Affairs has introduced the Rule 9A ‘Extension of Reservation of Name in certain cases‘ on 24th December, 2020 vide Companies (Incorporation) Third Amendment Rules, 2020. This Rule provides the extension in the time limit for reservation of name approved by Central Registration Centre (CRC).
Before discussing about Rule 9A, let’s discuss the prior provision:
As per Rule 9 of Companies (Incorporation) Rules, 2014:
An application for reservation of name shall be made through web service available at “www.mca.gov.in” by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) by paying a fees of Rs. 1000/-.
If the name is approved it will be available for the period of 20 days from the date of approval and if it is get rejected the applicant can resubmit the form without paying any fees after made the changes suggested by the Central Registration Centre (CRC).
As per Rule 9A of Companies (Incorporation) Rules, 2014:
Upon payment of fees through the web service available at www.mca.gov.in, the Registrar shall extend the period of a name reserved under rule 9 by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32),
In layman language, Registrar shall extend the period of 20 days of name reserved, after satisfying the certain conditions and payment of additional fees by the applicant as mentioned below:
|Case||Extension period||Total Days||Fees (Rs.)|
|2||20 additional days||40||1000 before expiry of 20 days from the date of approval;|
|3||40 additional days||60||2000 before the expiry of forty days from the date of approval or in other words before the expiry of additional 20 days as mentioned under case 2|
|4||40 additional days||60||3000 made before the expiry of twenty days from the date of approval under rule 9:|
In layman language we can avail the maximum extension of 60 days. Either we can take prior 20 days extension than further 40 days extension or directly can avail the 60 days extension before the expiry of original 20 days period.
Provided that the Registrar shall have the power to cancel the reserved name in accordance with sub-section (5) of section 4 of the Act.
Disclaimer: The above mentioned article has been based on relevant provisions of Companies Act, 2013 and its Rules. Under no circumstance, the author shall not liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.