RESERVE UNIQUE NAME
January 20, 2020
To begin any business, the most important step is to select and reserve a unique name that describes the goods or services provided by the business aptly and yet it is unique. The name shall bring distinction to the business such that it stands out in the market. Further, when the business is being registered, it becomes essential that it is in accordance with the guidelines laid by the Authorities. Therefore, the application for name approval (RUN application) is scrutinized as per the rules.
The process of company’s name approval has been simplified by the introduction of a new web-based application called RUN (Reserve Unique Name). It is introduced by the Ministry of Corporate Affairs for reserving a name for a new company or for changing the name of an existing company. Only a registered member can avail this facility through the ministry’s online portal. The complete proposed name with suffixes like private limited or public limited should be submitted at the time of approval only. The object of the proposed company will be submitted through this application only.
PURPOSE OF THE RUN E-FORM
Any applicant seeking reservation of a proposed company or seeking to change an existing company should apply for 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.
FEATURES OF RUN
- RUN is effortless to use for reserving a proposed name for a new company. It has also made the process of changing the name of an existing company easy and simple.
- It can be accessed on the official website of Ministry of Corporate Affairs.
- To avail the service, only existing users can log in the registered account. Since it is a post-login service, new users have to create a login account before they can avail the Reserve Unique Name (RUN) service.
- The company name applied must comply with the Company Name Availability Guidelines. It is also important to ensure that the proposed name is not the same or similar to the existing ones as per the trademark regulations.
- The application is processed by the Central Registration Centre (CRC). Therefore, the process of name approval is subjected to comprehensive checks. The applicant is communicated about approval or rejections through e-mail.
- Applicants are eligible to apply two proposed names.
- The company incorporation documents for an approved companyâ€™s name under the RUN process can be submitted only by the same user login ID which was used for reserving the name.
- The name so approved under RUN process is valid for 20 days from the date of approval. However, in case of change of name of the existing company, the name shall be valid for 60 days from the date of approval.
- It does not require Director Identification Number(DIN) or Digital Signature Certificate (DSC).
- In case of a change in name of the existing company, one will require Corporate Identification Number (CIN) of the existing company in order to apply through the RUN process.
- There is only one chance and no chance of resubmission. This means that if the name application is rejected by the CRC, there is no chance for re-submission of application. In case the application gets rejected, a fresh application will be filed. Again the fees will have to be submitted for every submission made under RUN process.
THE VALIDITY OF THE RESERVED COMPANY NAMES
The Central Registration Centre (CRC) may on the basis of information and documents provided, reserve the name for a period of:
- 20 days from the date of approval if in case the name is being reserved for a new company.
- 60 days from the date of approval if in case it includes a change in the name of an existing company.
IMPORTANT RULES REGARDING THE PROPOSED NAMES
According to the laws governing the RUN form, there are certain regulations pertaining to the reservation of the names. Some of these rules are as follows:
- The name stated should not be identical to the name of any existing company registered under the Companies Act.
- The name chosen should not constitute an offence under any law and should not be undesirable in the opinion of the Central Government.
- The company name should not have any word or expression which is likely to give the impression that the company is in any way connected to the Government central or state or any other local authority when it is actually not unless the approval from the respective government authority has been attained.
REQUIREMENTS TO RESERVE A UNIQUE NAME VIA RUN
Here is a complete list of things required for RUN:
- An MCA account.
- Corporate Identification Number (CIN)
- The proposed name
- Relevant document required with the proposed name
PROCESS FOR USING RUN
- It is necessary to have an MCA account before you access this service. Once you’re logged into the MCA account, you can enter the name you wish to use and check against the MCA database of company and LLP names for its availability.
- If an existing company wishes to change its name a Corporate Identification Number (CIN) will be required for the RUN e-form.
- The applicant must enter the name in the form, he wants to reserve for the incorporation of a new company or change the name of the existing company.
- The user is then supposed to enter the objects of the proposed company and any other relevant comments or documents supporting the proposed name.
PROCESS POST SUBMISSION
Upon successful submission of the proposed name in the RUN form, an SRN will be generated. Make sure that you save the SRN details as it will be required for future correspondence with the MCA.
A Challan will be generated upon successful submission of the proposed name and payment of the prescribed fees. This document will serve as proof of payment by the user to the MCA.
Whether a proposed name is approved or rejected an email conveying the same will be generated. This serves as an acknowledgement of the approval or rejection of the name by the MCA to the applicant.
APPROVAL / REJECTION LETTER:
In addition to the email, when a proposed name is approved or rejected by the concerned authority an acknowledgement of the approval or rejection along with the related documents, if any, is sent to the email id of the applicant.
RESUBMISSION OF THE E-FORM:
It is important to note that the name applied for will either be approved or rejected. No resubmissions are allowed, the applicant cannot edit the forms once submitted. For any change pertaining to the company name or reservation of a new name, a new fresh application will have to be accompanied made with the payment of Rs.1000 as fees.
A nominal fee of Rs. 1000 is to be paid while applying for the company title.
Please note that the fee payable is subject to changes with regard to the Act or any regulation. If in case such a change occurs a notification informing the same will be issued by the MCA.