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The Ministry of Corporate Affairs (MCA) has now made it simpler for you to register your company and limited liability partnership (LLP) from 26January 2018, which incidentally also happens to be the 69th Republic Day of the country. This can easily be called a giant step of sorts even as the government has rolled out a number of process changes to make it happen. The government is now letting you incorporate your company without any fee. This is part of a new service named Reserve Unique Name (RUN). Now there is no need any longer for you to file a form or even use a DSC (digital signature certificate) as such.
Thanks to this program you would also be able to file the e-form named SPICe without DIN (director identification number). Apart from the fact that the entire process has been made a lot simpler and there is no fee involved in the same the new process takes a lot less time as well.
RUN Form
Now, you can incorporate a company without seeking prior approval for the name or even using the SPICe form as such. And now, we want to inform one thing that the name will be reserved for 20 days as per new rule; however, earlier it was reserved for 60 days and this is a point that they reduced the time period of name reservation for a company to make the business do faster and easier with greater degree of simplifying process.As part of SPICe the incorporation certificate is only provided if MCA approves of the name of the new company.
Now, if you, as an entrepreneur, want to incorporate a company with a name that is unique you can do so for filing directly for incorporation by using the SPICe form. As has been said already, this will help you save plenty of money and time. If an entrepreneur however wishes to incorporate a company that has a name, which is same as that of a company that already exists, an existing trademark, or a current LLP, then they can do so as well but they would need to get the permission of MCA in order to be able to use that name.
What happened before RUN was introduced?
Before RUN (Reserve Unique Name) had been introduced companies had to apply to reserve their names through Form INC-1. At the most they had six choices from which they needed to pick their names. Applicants also needed to furnish at least one DSC and a brace of DINs.
How will the process be now?
Now, thanks to RUN; companies would be able to reserve their names only one in a shorter span of time and with a greater degree of ease process. Even they (entrepreneurs or business owners) would be able receive the name approval before they have received their DSC.
However, the applicant would not be able to opt for more than one name at a time. Right now, companies need to pay INR 1000 for reserving the name of their company using the web form RUN. Each and every time they do this; they would have to pay said amount. It does not really matter if the name has received approval or not. So we suggest that before applying for a name, you may like to be familiar with the Companies (Incorporation) Rules 2014, as amended, and conduct your own Name and Trade Mark search; for which you might not be pay again and again for acquiring the company name.
In order to apply for a name a company would first need to open an account at the MCA website. After that they would have to choose the kind of company that they wish to register and then they would have to provide their chosen name.
After this, they would have to check the name with the database of LLP and company names at the disposal of MCA. It needs to be noted in this context that the MCA database would run a check only to see if a proposed name is exactly identical to a company or LLP that already exists. However, as per the rules and regulations mentioned in the Companies Incorporation Rules, 2014 the proposed name of a company cannot even be similar to an existing one, let alone be an exact replica.
Here we are just showing you an overview of company registration process in present days as related to earlier days and from this you will get a basic knowledge on previous and recent process
Take a look on the new company registration process as on Jan, 2018
1. Get Name Approval from MCA by using RUN service
2. Obtain DSC (Digital Signature Certificate) from any Certifying Authorities (CA)
3. State Stamp Duty Fees
4. Incorporate Company with DIN, PAN & TAN with the help of SPICe e-Form
5. Appointment Directors, CEO, CFO to the Company
Here’s a quick look at earlier company registration process before 2018
1. Obtaining DSC
2. Obtaining DIN
3. Get Name Approval from MCA by filing INC-1 Form
4. Upload Various Forms in MCA using Spice
5. Certain Stamp Duty Fees
6. Company Incorporation Certificate along with PAN and TAN
