Companies (Incorporation) Third Amendment Rules, 2020

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Companies (Incorporation) Third Amendment Rules, 2020

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

ThirdAmdtRules_24122020

Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.