Review of the New Company Name Approval Process

In February 2016 the name approval process was transferred from the State ROC offices to a centralised name approval processing cell. In this post, we provide an IndiaFilings review of the new process for name approval.

Old Process for Name Approval

Under the old method for processing of name approvals, send applications for name approval for a company made in Form INC-1 to an Officer in the State ROC office. The process of name approvals are manual and the approval times for company name varies from state to state. To streamline this process and set the stage for improving ease of doing business, the

MCA vide notification dated 22nd January 2016 announced the establishment of a Central Registration Centre (CRC).

Central Registration Centre (CRC) for Name

The establishment of Central Registration Centre (CRC) with a territorial jurisdiction all over India, for processing of all company name approval procedure is under the Companies Act, 2013. The Central Registration Centre presently functions under the administrative control of

Registrar of Companies, Delhi (ROC Delhi). With the advent of the new central registration centre, the government processing time for company name has reduced drastically to one or two days. The entire process for company name approval has re-engineered and moved to an automated system. The process of over 14000 name applications is already done, and on average almost 70% of all name approval applications are clear specifying the additional time given to the balance 30% for resubmission. The MCA has also introduced zero balance in application from Tuesdays to Friday, thereby keeping a mechanism to ensure all applications are cleared instantaneously. With the name approval process becoming more streamlined, the MCA is set to announce centralisation of processing of incorporation applications, thereby making the company registration process a breeze.

IndiaFilings Review of New Process

The new process has drastically changed the incorporation process and made it simpler. Now, in India, it is possible to register companies in 10-15 days in India, instead of about 25-30 days, it used to take prior to the introduction of the new central registration centre for name approval. The introduction of a central registration centre for incorporation shortly expects to even shorten the time for company registration, making true the dream of incorporating a company in one day in India.

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Frequently Asked Questions

Common questions about Company Name Approval Process India.

The Central Registration Centre (CRC) is a centralized authority established by the Ministry of Corporate Affairs (MCA) with jurisdiction over the entire country for processing company name approval applications under the Companies Act, 2013. It currently functions under the administrative control of the Registrar of Companies, Delhi (ROC Delhi).

According to the IndiaFilings review, the introduction of the CRC has significantly reduced the processing time for company name approvals to just one or two days. It has also streamlined and automated the entire name approval process, making it more efficient and consistent across India.

The centralized and automated name approval process through the CRC has made it possible to register companies in India within 10-15 days, compared to 25-30 days earlier. The MCA plans to further centralize the incorporation process, which is expected to make it possible to incorporate a company in a single day.

The MCA has introduced zero-balance applications from Tuesday to Friday, ensuring that all name approval applications received during this period are cleared instantly, without any pending applications. This mechanism helps maintain the efficiency of the new centralized process.

According to the IndiaFilings review, the new centralized and automated name approval process has significantly reduced the overall timeline for company registration in India. It has made the dream of incorporating a company in a single day a realistic possibility.

Prior to the establishment of the CRC, company name approval applications were processed manually by officers at the respective State Registrar of Companies (ROC) offices. The approval times varied across different states, leading to inconsistencies and delays.

The article mentions that the CRC has already processed over 14,000 name approval applications. On average, around 70% of the applications are cleared directly, while the remaining 30% are given additional time for resubmission.

The Central Registration Centre (CRC) currently functions under the administrative control of the Registrar of Companies, Delhi (ROC Delhi), as mentioned in the article.

The establishment of the CRC and the streamlining of the name approval process are part of the government's efforts to improve the ease of doing business in India. It is a step towards simplifying and expediting the company incorporation process in the country.

The article highlights that the entire process for company name approval has been re-engineered and moved to an automated system. This automation has played a crucial role in reducing the processing time and ensuring consistency in the name approval process across India.