In order to simplify the Company name approval process and changing the name of an existing company, the Ministry of Corporate Affairs introduced a new simple web-based application called RUN (Reserve Unique Name) for registering any organization. Before RUN, all applications were to be made in the Form INC-1 accompanying with a minimum of 2 Director Identification Number and 1 Digital Signature. Any applicant seeking to reserve a proposed company or a change in an existing company should apply for reservation through the RUN service. The application will then be processed by the Central Registration Centre (CRC) and the proposed name applied should not be undesirable as per the relevant provisions of the Act and the rules mentioned in it.
Names which can be reserved under RUN
Below table gives a brief description regarding the type of companies names that can be reserved along with their respective suffixes:
|S.No||Company Type||Suffix Required|
|1.||Private Limited Company||Limited / Company|
|2.||Section 8 company||Private Limited|
|3.||IFSC Company||IFSC Limited / IFSC Private Limited|
|4.||Unlimited Company||Unlimited Company|
|5.||Nidhi Company||Nidhi Limited|
|6.||Producer Company||Producer Company Limited|
|7.||One Person Company||(OPC) Private Limited|
Validity for reserved company names
The CRC on the basis of information and documents provided, reserve the name for a period of 20 days from the date of approving in case of new company name registration. Similarly, it is 60 days from the date of approval in case of change in the name of an existing company.
Rules regarding the proposed names
Certain regulations pertaining to the reservation of the names are to be followed according to the laws governing the RUN form which are as below:
- Name stated should be different from the name of an existing company registered.
- The name should not constitute any offence under any law and also should not be undesirable in the opinion of the Central Government.
- The company name should not have any word or expression which likely gives the impression that the company is connected to the central or state government or any other local authority unless the approval from the respective government authority has been attained.
Requirements to reserve a unique name via RUN
Below is the list of things required for RUN:
- An MCA (Ministry of Corporate affairs) account
- Corporate Identification Number (CIN)
- The proposed name
- Documents required with the proposed name
Process for using RUN
Below is the process for using RUN with an MCA account:
- Firstly, creating an MCA account is important before you access this service. Login the account and enter the name you wish to use and check against the MCA database of the company and LLP names for its availability.
- For an existing company who wishes to change its name, a CIN will be required for the RUN e-form
- The applicant is required to enter the name in the form, he wants to reserve for the incorporation of a new company or change the name of the existing company.
- The user is then supposed to enter the objects of the proposed company and other relevant comments or documents supporting the proposed name.
Upon successful submission of the proposed name in the RUN form, a SRN (Service request number) is generated. Also, a challan serving the proof of the payment, email conveying the proposed name acceptance or rejection status, an approval / rejection letter, and finally a resubmission of the e-form is generated.
Concluding this document, the RUN is an easy web form to fill in with no complications. There is no need to provide other details about incorporation like proposed capital, shareholding or promoter details etc. This as a result waived off inherent limitation of e-form filing which included uploading errors or DSC (Digital Signature Certificate) registration.
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