Companies (Incorporation) Third Amendment Rules, 2020

The Ministry of Corporate Affairs (MCA) vide a notification dated 24

th December 2020 has published the Companies (Incorporation) Third Amendment Rules, 2020 to further amend the Companies ( Incorporation) Rules, 2014. Through this amendment a new provision namely Rule 9A has been inserted which deals with the extension of reservation of name in certain cases. The new rule 9A will be effective from 26th January 2021. The current article briefs the Companies (Incorporation) Third Amendment Rules, 2020.

Gist of Notification

With this notification, MCA announced the new provision namely Rule 9A for the extension of reservation of name in certain cases.

After rule 9, the rule 9A shall be inserted with effect from 26.01.2021.
As per the new rule, the registrar shall extend the period of a name reserved under Rule 9 by using web service SPICe+ (Simplified Performa for Incorporating Company Electronically Plus: INC-32) up to 60 days on Payment of Fee

Rule 9 of Companies (Incorporation) Rules - Reservation of Name

As per Rule 9 of Companies (Incorporation) Rules, an applicant may make an application to the Registrar of Company (ROC) for the reservation of name of the Company:

The name of the proposed Company
The name to which the Company proposes to change its name

Application for Reservation of Name

An application for Reservation of Name will be made to Registrar of Company (ROC), through the web service official website of Ministry of Corporate Affairs by using web service SPICe+ (Simplified Proforma for Incorporating Company electronically Plus: Form INC-32), and, an application for Change of Name shall be made through the web service official website of Ministry of Corporate Affairs by using web service RUN (Reserve Unique Name)

An application for Reservation/ Change of Name will be made along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014, i.e., 1000.
Further, Registrar of Company (ROC), Central Registration Centre, may either approve or reject the application after allowing one-time re-submission of such application within 15 days for rectification of the defects.

The Time Limit for Reservation of Name of Company by ROC

As per the earlier rule, upon receipt of an application, the Registrar of Company(ROC), may be based on information and documents furnished along with the application, reserve the name as follows:-

In Case of New Company- For a period of 20 days from the date of the application.
In Case of Existing Company- For a period of 60 days from the date of the application.

New Rule 9A - Extension of Reservation of name in Certain Cases

With this notification, MCA announced that upon payment of fees through the official website of MCA, the Registrar will extend the period of a name reserved under Rule 9 by using SPICe+

The period will be extended upto forty days from the date of approval under rule 9, on payment of fees of rupees of one thousand rupees made before the expiry of twenty days from the date of approval under rule 9.
The period shall be extended upto sixty days from the date of approval under rule 9 on payment of fees of rupees two thousand made before the expiry of forty days
The period shall be extended upto sixty days from the date of approval under rule 9 on payment of fees of rupees three thousand made before the expiry of twenty days from the date of approval under rule 9

Sl.No	Extension of period of name reserved	The required fee for Extension	Fee Payment Date
1	40 days	Rs.1000	Before the expiry of 20 days from the date of name approval
2	60 days	Rs.2000	Before the expiry of 40 days from the date of approval
3	60 days	Rs.3000	Before the expiry of 20 days from the date of name approval

Amendment in SPICe+

As mentioned above, an application for Reservation of Name will be made to Registrar of Company (ROC), through the web service official website of Ministry of Corporate Affairs by using web service SPICe+ (Simplified Proforma for Incorporating Company electronically Plus : Form INC-32). The services of the SPICe+ is of 2 parts. Part A is of the name reservation, and part B is of the rest of the services. The applicant can apply for the name reservation first and then for the other services or he/she can apply for part A and part B services simultaneously. After the name reservation, the application for incorporation of a company is a continuous process Under this Companies (Incorporation) Third Amendment Rules, 2020, MCA has amended certain portion of Part A of SPICe+ for and the applicant needs to furnish the following details for name reservation:

Type of Company
Class of Company
Category of Company
Sub-Category of Company
Description of the main division of industrial activity of the company
Summary of the objects to be pursued by the company in its incorporation
Particulars of the proposed or approved name

The official notification about the Companies (Incorporation) Third Amendment Rules, 2020 is as follows;

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Frequently Asked Questions

Common questions about Companies (Incorporation) Third Amendment Rules 2020.

The Companies (Incorporation) Third Amendment Rules, 2020 is a notification issued by the Ministry of Corporate Affairs (MCA) on 24th December 2020, amending the Companies (Incorporation) Rules, 2014. It introduces a new provision, Rule 9A, which deals with the extension of reservation of name for companies in certain cases.

Rule 9A allows the Registrar of Companies (RoC) to extend the period of a reserved company name under Rule 9, by using the web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32). This extension is subject to the payment of prescribed fees.

Under Rule 9A, the period of a reserved name can be extended up to 40 days from the date of approval, upon payment of Rs. 1,000 before the expiry of 20 days from the date of approval. It can be further extended up to 60 days from the date of approval, upon payment of Rs. 2,000 before the expiry of 40 days or Rs. 3,000 before the expiry of 20 days.

Rule 9A of the Companies (Incorporation) Third Amendment Rules, 2020 will come into effect from 26th January 2021.

An applicant can apply for reservation of a company name through the web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) on the official website of the Ministry of Corporate Affairs.

As per Rule 9 of the Companies (Incorporation) Rules, the fee for applying for reservation of a company name is Rs. 1,000, as provided in the Companies (Registration Offices and Fees) Rules, 2014.

Under the amended SPICe+, applicants need to furnish details such as the type of company, class of company, category of company, sub-category of company, description of the main industrial activity, summary of objects to be pursued, and particulars of the proposed or approved name.

As per Rule 9, for a new company, the Registrar of Companies (RoC) reserves the name for a period of 20 days from the date of application.

For an existing company, the Registrar of Companies (RoC) reserves the name for a period of 60 days from the date of application, as per Rule 9.

An application for a change of company name shall be made through the web service RUN (Reserve Unique Name) on the official website of the Ministry of Corporate Affairs, as per Rule 9.