Section 8 Company
The Indian Companies Act, 2013, as well as the rules and regulations created by that Act, govern Section 8 Companies. The Ministry of Corporate Affairs, Government of India, is in charge of managing it through the Offices of Registrar of Companies, which are spread out across the nation’s states. Depending on the sort of company that is to be founded, there are different rules, requirements, processes, and procedures for company incorporation.
Name of Section 8 Company
The “Reserve Unique Name” facility must receive the application for Section 8 Company name availability. The words Private Limited or Limited should not appear at the end of the name of a Section 8 company.
The words prescribed for this purpose, such as foundation, forum, association, federation, chambers, confederation, council, electoral trust, etc., must come at the end of the name of a Section 8 Company.
The RUN capability allows for the simultaneous submission of two names as well as a resubmission.
By launching a new web-based programme called Reserve Unique Name on January 26, 2017, the Ministry of Corporate Affairs streamlined the procedure for approving company names (RUN). A name can be reserved for a new business or changed for an existing business using this straightforward process. Additionally, RUN can be used to reserve LLP registration.
An application under the RUN can only be made by a registered user of the MCA Portal. After logging in, the user must choose Reserve Unique Name (RUN) under MCA Services. RUN can be used to reserve a company name for someone who wants to register a new business or alter the name of an existing one.
The proposed name must not contain any names that are forbidden by the Business Name Availability Guidelines when a user submits an application to reserve a name for formation of a new company or to change the name of an existing company.
Approval of a Name’s Validity
According to RUN’s guidelines, a business name is valid for the following duration:
Presentation of Objects
To support the proposed name, the new company’s objectives must be supplied together with any pertinent documentation. Only one name may be submitted as part of the RUN application. There is no way to list several names in descending order of preference.
Conditions for the Reserve Name
When submitting an RUN application, there is no necessity to include any supporting documentation. In addition to other pertinent submissions, it is advised to submit a NOC from an existing company or approval from other agencies to support the name application.
Fee to Remit
Every application must be accompanied by payment. A challan with a Service Request Number (SRN) including the fee information paid by the user would be generated when the suggested name and payment were submitted. If the application is denied, MCA will not return the application money.
RUN re-submission Application
The name submitted will either be accepted or rejected; there will be no opportunity for resubmission. Each application must be accompanied by a new payment of Rs. 1000.
Sequence of Names
The Central Registration Center would process all name requests (CRC). The CRC will perform a thorough review of the proposed name. Following the completion of this process, the application’s approval or rejection would be announced through email.
Warnings to be Obeyed
The applicant must conduct their name and trademark search and be familiar with the Companies (Incorporation) Rules 2014 in order to avoid having their application rejected. The CRC checks names for phonetic similarity and cross-linguistic similarity of meaning.
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Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.