MCA on 24th of December, 2020 inserted the new rule 9A. The rule provides the extension in the time limit for the reservation of name. Before moving further with the new rule I am encapsulating the existing provision related to reservation of the name.
Currently, we are incorporating company through SPIC+ integrated system of company incorporation. SPICE+ is divided into two parts that Part-A for the reservation of name and Part-B for the incorporation of the company.
The applicant got the freedom either to fill both Part-A and Part-B together for the incorporation of the company or fill Part-A first and apply for the reservation of name of the company after payment of fees of Rupees One Thousand (Rupees 1000). Once the name gets reserved then proceeds with the Part-B for the incorporation of the Company.
In case the company reserves the name first through Spice+ Part A then such name is reserved for the 20 days as per Section 4 subsection (5). However, Section 4(5) also provides that name be reserved for such other period as may be provided. For easy reference, I am reproducing the provision bellow.
“ 4 (5) (i) Upon receipt of an application under sub-section (4), the Registrar may, on the basis of information and documents furnished along with the application, reserve the name for a period of twenty days from the date of approval or such other period as may be prescribed:
Provided that in case of an application for reservation of name or for change of its name by an existing company, the Registrar may reserve the name for a period of sixty days from the date of approval.”
Insertion of New Rule 9A and its impact
MCA inserted new rule 9A and through this new rule MCA provided the opportunity for reserving name beyond 20 days, if required, subject to condition and payment of fees.
|Case Number||Extension beyond 20 days in days||Total Days for name reservation after extension||Amount to be paid in addition of Rs. 1000||When to apply|
|1||20 days||40 (20 days+20 days)||Rupees One Thousand||Before the expiry of 20 days from date of approval|
|2||40 days||60 (20 days+20 days + 20 days)||Rupees Two Thousand||Before the expiry of 40 days from date of approval|
|3||40 days||60 (20 days +40 days)||Three Thousand||Before the expiry of 20 days from date of approval|
It is to be noted that in case no. 2 and case no. 3 name will be reserved for 60 days from date approval.
However, in case no. 2 we first applied for 20 days extension making the total of 40 days and before the expiry of 40 days will are seeking additional 20 days extension making the total of 60 days of name reservation.
In case no. 3, we will apply directly for 40 days extension before the expiry of 20 days from the reservation of name making the total of 60 days of name reservation.