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Company Name Reservation Process – Reserve Unique Name – Requirements & Process

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The Importance Of A Company’s Name

It is the identity that makes us who we are. It is our USP (Unique Selling Point). People know us as a result of our identity. The same holds true for the company’s name, which is its identity. Well, when a company is named, its name is to be reserved first as per the official process prevailing in India.

The Two Ways To Apply For Reserving Companies’ Name

Do you know how can a company reserve its unique name? Well, the process of incorporation of a private limited company has changed after the amendment in the Companies Act. Earlier, to reserve unique name for a company, you had to file a separate form with MCA.

But now, one can apply for the name in two ways. The first is to file a separate web-based application on the MCA portal. Another way is to apply for a name within the form of registration of the private limited company. 

Also read How Can We Check Whether A Company Is Registered Or Not?

RUN, The Webservice That Makes You Reserve Company’s Name

RUN (Reserve Unique Name) is a web service by which one can reserve the name of a company or change the existing name. It helps you to verify whether the company name is unique or not. Before the initiation of RUN form of MCA, all applications concerning company names were available in form INC-1.

What all is required while reserving the unique name through RUN.

Following are required for reserving the unique name through RUN:

  • The MCA account,
  • CIN (Corporate Identification Number), and
  • The proposed name.

The Steps To Get The Company Name Reserved

One must consider the following points before applying for a company name using RUN form on MCA.

I. Formulating The Company Name

The governing law provides certain rules for naming a company. MCA will not approve names that are not following the rule. The unique company name must have 3 parts.

First– a unique or coined word

Second– any suffix and;

Third– private limited or public limited or (OPC) private limited.

The name of a private limited company must end with “private limited.” Further, the name must not be identical to or resemble any other company or LLP. There are some other factors that one has to keep in mind while choosing the company’s name.

You may like reading One Person Company – What It Can Provide And What It Can Not

II. Checking the Unique Name Availability

After the formulation of a name, the next step is to check whether the name is available or not. Checking the availability of the company name is important to avoid rejection. One has to check the name on the MCA portal and also for a trademark. In case a name already has a trademark owner, the same cannot be filed.

The Process to Reserve Company Name 

Following are the steps to reserve unique name for a company.

1. Login to MCA Portal

Only registered users of the MCA can file the name application. Hence, if one does not have an account, then one has to create an account. One has to select the category from “Register user” or “Business user” and fill in all other details to create an account. Whn creating the Account, one has to keep in mind the fact that the same account will be used for all future filings for the Company.  So, it is always advisable to take help from Professionals.

2. Documentation

It is not mandatory to attach any document along with the application to reserve the company name. But if any more information is to be provided, then one can attach it in PDF format. It can be any of the following documents:

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

3. Filing of Web-Based Application

Ater the notification by MCA, different forms of comapny can opt for following e-forms to make their application.

FOR PRIVATE LIMITED COMPANIES: The reservation of name for PLC companies are classified into two parts:

a) For the Incorporation of a new company: New Spice+ Part A form can be filed to make a reservation of company name.

b) For a change in name for a existing company; you need to file a RUN Form by MCA.

FOR LIMITED LIABILITY PARTNERSHIP: To reserve a unique company name, you need to file the RUNLLP form.

This classification is made in order to make the process of Reserving a name easier for everyone.

4. The Payment Of 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. The payment of fees will generate a receipt with SRN to track the application or further processing. If the name is applied along with the incorporation form – SPICE, then the additional fee of the name application will not be levied.

5. 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.

This e-mail will contain the period within which one has to re-submit the form. Non-submission within due date will lead to application rejection. After which, you will have to file a new application with the fees. If the name is not approved in the second chance, then the application will also get rejected and a new application will have to be filed. 

You may like reading How to Convert Partnership Firm to LLP? Process and Benefits

The Validity From The Date Of Approval

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. If the applicant is unable to file the form within the due date then they need to file a new name application with RUN form on MCA. After the latest update from MCA, now if you need an extension in the validity period, you can apply for the same by paying an additional fee of Rs. 1000/-.

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