Section 8 Company Name
Section 8 Company Name
Section 8 Company is regulated by the Indian Companies Act, 2013 and the rules and regulations that are made by the said Act. It is administered by the Ministry of Corporate Affairs, Government of India, via the Offices of Registrar of Companies located in every state in the country. The Company Incorporation rules, the requirements, process and the procedures differ based on the type of the Company that is to be incorporated.
Section 8 Company Name
The application for name availability of Section 8 Companies has to be made in ‘Reserve Unique Name’ facility. Name for a Section 8 Company should not include the words Private Limited or Limited at the end of its name.
The name of a Section 8 Company must end with the words prescribed for this purpose like foundation, forum, association, federation, chambers, confederation, council, electoral trust, etc.
The RUN facility enables the proposal of two names at once as well as a resubmission.
RUN
The Ministry of Corporate Affairs has simplified the Company Name Approval Process from 26th January 2017 by introducing a new web-based application called Reserve Unique Name (RUN). It is a simple and easy process that helps in reserving a name for a new company or changing the name of an existing company. RUN is also available for reserving the registration of LLP.
Eligibility
Only a registered user of the MCA Portal can make an application under the RUN. Once the user has logged in, he/ she has to select Reserve Unique Name (RUN) under the MCA Services. A person desiring to register a new company as well as to change the name of an existing company can use RUN for company name reservation.
Requirements
When a user makes an application to reserve name for incorporation of a new company or to change the name of an existing company, it has to be ensured that the proposed name does not contain names that are prohibited under the Company Name Availability Guidelines. A Trademark Search is also conducted to make sure that the proposed name is not in violation of the provisions of Section 4(2) of the Companies Act 2013. The proposed name will be rejected if it is not in line with the given guidelines.
Validity of a Name Approval
A company whose name is approved as per the rules of RUN is valid for a period of:
- 20 days from the date of approval (if the name is reserved for a new company)
- 60 days from the date of approval (to change the name of an existing company).
Submission of Objects
The objects of the proposed company have to be submitted along with relevant submission to support the proposed name. There can be only one name that can be submitted under the RUN application. There is no option to submit multiple names in order of preference.
Requisites to Reserve Name
There is no requirement to attach any documents while submitting a RUN application. But, it is advisable to submit NOC from an existing company or approval from other agencies, along with other relevant submissions to support the name application. All submissions have to be filed as a single document, and the file size should not exceed 6 MB.
Fee to Remit
All applications must be supported with a fee of Rs. 1000. Upon submission of the proposed name and remittance of payment, a challan would be generated with Service Request Number (SRN) containing the fee details paid by the user. There is no refund of fee from MCA if the application is rejected.
Re-submission of RUN Application
The name applied will either be approved or rejected, with no scope for resubmissions. A fresh payment of Rs. 1000 has to be remitted for every application submitted using the RUN service.
Procession of Names
All name applications would be processed by the Central Registration Centre (CRC). The name applied will be subjected to a comprehensive check by the CRC. On completion of this procedure, the approval or rejection of the application would be communicated via e-mail.
Precautions to be Taken
To avoid rejection of the application, the applicant has to be familiar with the Companies (Incorporation) Rules 2014 and conduct their Name and Trademark Search. The CRC performs a name check in terms of phonetic similarities and similar meanings in different languages.
