New Form for Name Registration (RUN- Reserve Unique Name)
MCA has introduced “RUN- Reserve Unique Name” web service for name reservation of proposed company w.e.f. 26th January 2018. It is available at www.mca.gov.in by using RUN.
The application for reserving name can be submitted online directly (no requirement to download e-form like INC-1 and attaching DSC). Before introducing RUN (Reserve Unique Name) companies had to apply through Form INC-1. Applicants also needed to furnish at least one DSC and two DIN.
In RUN web-form, digital signature is not required, there is no requirement to download e-form like INC-1. However, only one name choice can be provided at a time. Fees payable for reservation of name is rupees 1000/-.
Application for name reservation can be made only after login and there is also one restriction that SPICe form, INC-12 (application for grant of license under sec 8) and INC-24 (application for approval of central government for change of name) will be uploaded using same ID.
The validity of approved name is for a period of
(i) 20 days from the date of approval (in case of new company) or
(ii) 60 days from the date of approval (in case of change of name of an existing company)
Though in INC-1 era you were able to get name reservation for 60 DAY from the date of application.
PROCESS OF RUN
First create a free MCA account. New users are required to create a login account first before using the service. After login, click on RUN under the head ‘MCA Services’
ENTER CIN (Corporate Identification Number) and it has to be entered only when an existing company wishes to change its name and is using RUN to reserve a new name.
Enter the name you wants to reserve. For incorporation of a new company or for changing the name of an existing company.
Enter the objects of the proposed company and any other relevant comments in support of the proposed name.
On submission, the requested name would be checked by MCA personnel at the Central Registration Centre (CRC) against company, LLP and trademarks for tests of similarity.
Using RUN service you can give only one name which must be unique and you form will be either approved or rejected by Central Registration Center (CRC) and now on wards you will not get re-submission (RSUB).
While using INC-1 you had option to give 6 names of the proposed company in order of preference. But now this option is no more available in RUN.
Advantages of RUN system
Here are some of the benefits of RUN mentioned:
- There is no need of DIN (Director Identification Number) and DSC (Digital Signature Certificate) while applying the name through RUN service.
- Also there is no need to provide other details about incorporation like proposed capital, shareholding or promoter details etc.
- It is simple web form and easy to fill in with no complications.
- By introducing web form all the inherent limitation of e-Form filing is done away with like uploading error or DSC not registering etc.
- This is the web form and is free from system configuration errors because form can be uploaded online through MCA portal.
Limitation of RUN System
However there are some limitations of RUN:
- At once not more than one name can be applied unlike INC-1, where 6 proposed names can be applied according to preference.
- While applying name through RUN, Resubmission is not permitted.
- There are high chances of name getting rejected, which may result in increase in cost for promoters of proposed company because for every new name application fees of amount 1000/- has to be submitted.
- In case of RUN, after name application there is no office copy of form available, applicant need to take screen shot and preserve it for own record.