Introduction
RUN, another big move taken by the Indian Government towards ease of doing business. It
has abolished the E-form for reservation of name and introduced a web service called “RUN”
(Reserve Unique Name) to reserve the Name of a Company (existing as well as proposed).
The Govt. has facilitated the RUN service for stakeholders who wish to reserve the name of
their proposed Company as well as the existing one. This facility is easy and quick as very few
details are being asked and the time taken to process the application is also less.
For change of name of an existing company, the applicant has to reserve name only through
RUN web service. However, in case of reservation of a name for a proposed company, the
applicant has the option to file RUN form or he can directly apply in Spice Form without filling
the RUN from.
Procedure to file RUN Application
-
- Login to MCA Portal
- Go to MCA services>Company Services>RUN(Reserve your name)
- Select whether applying for New application or it is for resubmission.
- Nature of Company
– Select the type of Company
– Fill CIN in case of change of name of existing Company - Maximum Two names can be proposed in a single application
- Click on Auto Check button for preliminary scrutiny of application
- Fill the object and attach the document, if any, required to be attached with the
application. - Submit the application, SRN will be generated.
- Make payment of Rs. 1000/-
On approval of name, the name shall be valid for 20 days in case of new incorporation
and for 60 days in case of the existing company from the date of approval of name
application. Within the said deadline, one has to file form of incorporation /name change.
In case the person fails to file the same within the stipulated time period, then he has to
start the entire process again from starting.
Guidelines for Name Application
One should be cautious while applying the name. To maintain the distinctive identity, the
Government ensures not to approve identical/ undesirable names which may create
confusion among stakeholders. It has prescribed certain guidelines according to which a
name shall be considered as identical/ undesirable with other.
The guidelines are as follows:
| S. No. | Conditions when the name is not considered as an identical name | Conditions when the name is considered undesirable |
| i. | Use of words like Pvt., Pvt, Private, (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership | Attracts the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 |
| ii. | Words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.; | Name resemble an existing registered/ applied trademark unless consent from the owner has been submitted |
| iii. | Plural version of any of the words appearing in the name | Any word or words which are offensive to any section of the people or the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited |
| iv. | Type and case of letters, the spacing between letters and punctuation marks | Word identical with or too nearly resembles the name of a limited liability partnership |
| v. | Merging words together or splitting the words of the existing name, Different combination of same words | In case of company’s engaged in the business of financing, leasing, chit fund, investments, securities or combination thereof, need to indicate such related activities in their name |
| vi. | Use of different tense or number of the same words | The name is closely the popular or abbreviated description of an existing company /LLP |
| vii. | Using different phonetic spellings or spelling variations, misspelt words | The proposed name is identical with or too nearly resembles the name of a company or LLP incorporated outside India |
| viii. | The addition of an internet-related designation, such as .com, .net, .edu, .gov, .org, .in, or even where (.) is written as ‘dot’ | Use of words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a declaration is submitted that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant |
| ix. | The addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc.; may be allowed only if Board Resolution statinf no objection from the existing company is submitted | The name includes word indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc. |
| x. | The proposed name is the Hindi or English translation or transliteration of the name of an existing company or LLP | Implies association or connection with embassy or consulate or a foreign government or with the patronage of a national hero or any person held in high esteem or important personages who occupied/ occupying important positions in Government |
| xi. | General names like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd. | |
| xii. | The proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited | |
| xiii. | Contains the words ‘British India’ |
However, when a foreign company is incorporating its subsidiary company in India, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available;
In the case of Government Company, the proposed name may include the word “State”;
For Section 8 or Non-profit Organization incorporated as Company, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.
However, in case of Nidhi Company, the last word ‘Nidhi Limited’ shall form part of its name.
The proposed name is identical to the name of a company/ LLP dissolved or the name of the company or LLP has been struck off unless:
- In case of a liquidated company: a period of 2 years has not elapsed from the date of such dissolution
- In case the name of a company which is struck off: before the expiry of twenty years from the publication in the Official Gazette being so struck off
- In case the name of LLP in liquidation or LLP which is struck off: up to a period of 5 years;
The names released on change of name by any company shall remain in database and shall not be allowed to be taken by any other company including the group company of the company who has changed the name for a period of three years from the date of change subject to specific direction from the competent authority in the course of compromise, arrangement and amalgamation.
Further, the applicant shall make a declaration for using or have been using the name in the last five years in any other business constitution like Sole proprietor or Partnership or any other incorporated or unincorporated entity. In case of the affirmative declaration, No Objection Certificate from other partners and associates for use of such name by the proposed Company or LLP, as the case may be, and also a declaration as to whether such other business shall be taken over by the proposed company/ LLP or not needs to be submitted.
A proposed name may include the following words only with prior approval of Central Government:
- Board;
- Commission; Authority;
- Undertaking;
- National;Union; Central;Federal;
- Republic;
- President; Rashtrapati;
- Small Scale Industries;Khadi and Village Industries Corporation; Financial Corporation etc.
- Municipal; Panchayat;
- Development Authority; Development Scheme;
- Prime Minister or Chief Minister; Minister; Governor;
- Nation;
- Forest corporation;
- Statute or Statutory;Court or Judiciary;Bureau
- The use of word Scheme with the name of Government (s), State, India, Bharat or any government authority or in any manner resembling with the schemes launched by Central, state or local Governments and authorities
In case the proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed if the applicant produces any proof of significance of business relations with such foreign country like Memorandum of Understanding with a company of such country.
Provided that the name combining the name of a foreign country with the use of India like India Japan or Japan India shall be allowed if, there is a government to government participation or patronage and no company shall be incorporated using the name of an enemy country (as declared by Government).
Conclusion
One should take utmost care while applying name as resubmission is allowed twice only. In order to speed up your process of incorporation, one should ensure to follow the guidelines and avoid resubmission. So stop dreaming and start achieving by reserving your business name today by calling us at 8010233173 and mail us at complianceship@gmail.com
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