Reserving Unique Names for Companies: Understanding the MCA RUN Process

Introduction:

Reserve Unique Name (RUN) is a pivotal web service facilitating the reservation or alteration of company names. Previously, applications regarding company names necessitated Form INC-1 submission, accompanied by specific prerequisites. However, with the advent of the RUN web-form, reserving a company name has become streamlined, eliminating the need for digital signatures.

Purpose of the RUN e-form:

Any individual or entity intending to reserve a name for a prospective company or amend an existing one must utilize the RUN service. This application undergoes processing by the Central Registration Centre (CRC) to ensure compliance with relevant provisions and rules.

Eligible Company Name Types:

Various company types are eligible for name reservation via RUN, each requiring specific suffixes for differentiation. These include Private Limited Companies, Section 8 Companies, IFSC Companies, Unlimited Companies, Nidhi Companies, Producer Companies, and One Person Companies.

Validity of Reserved Company Names:

The CRC reserves approved names for differing durations based on the nature of application: 20 days for new company reservations and 60 days for existing company name changes.

Important Rules for Proposed Names:

Stringent regulations govern name proposals, including avoidance of similarity with existing company names, adherence to legal standards, and avoidance of misleading associations with governmental bodies.

Requirements for RUN Name Reservation:

Individuals seeking to reserve a unique name via RUN must possess an MCA account, Corporate Identification Number (CIN), the proposed name, and relevant supporting documents.

Process for Using RUN:

After logging into the MCA account, users can check the availability of their desired name. For existing companies, a CIN is necessary. The applicant submits the desired name, along with company objectives and supporting documentation.

Post-Submission Process:

Upon successful submission, a Service Request Number (SRN) and Challan are generated, serving as evidence of submission and payment. The applicant receives email notifications regarding name approval or rejection, accompanied by formal approval/rejection letters.

Resubmission and Fee Rules:

No resubmissions are permitted after initial application. Any alterations require a fresh application, accompanied by a Rs. 1000 fee, subject to regulatory changes notified by the MCA.

In essence, the MCA RUN process offers a structured approach to name reservation, ensuring adherence to legal standards and facilitating smoother company establishment or modification procedures.