The process of incorporation of a private limited company has changed after the amendment in Companies Act. Earlier, to reserve company name a separate form had to be filed with MCA. But now the name can be applied for in two ways. First is to file a separate web-based application on MCA portal. Another way is to apply for a name within the form of registration of private limited company.  

One must consider the following points before applying for a company name with MCA. 

1. Formulation of company name: 

The law has provided certain rules for naming a company. MCA will not approve names which are not in accordance with the rule. The name of a company must have 3 parts. First– a unique or coined word, second– any suffix and third– private limited or public limited or (OPC) private limited. The name of a private limited company must end with “private limited”.  Further, the name must not be identical or resemble any other company or LLP. There are some other factors to be kept in mind while choosing the name of the company

2. Checking the availability of the name: 

After the formulation of a name, the next step is to check whether the name is available or not. Checking availability of company name is important to avoid rejection. The name must be checked on MCA as well as with trademark.  If the name is trademarked then it will not be approved.  

Process to reserve company name  

Following are the steps for reserving the name of a company. 

1. Login to MCA portal 

The name application can be filed only by a registered user of MCA. Hence, if one does not have an account then one has to create an account. One has to select the category from “Register user” or “Business user” and fill all other details to create an account.   

2. Documentation 

It is not mandatory to attach any document along with the application to reserve company name. But if any more information is to be provided then one can attach it in pdf form. It can be any of the following documents:

  • Business activity of the proposed company in brief.
  • Trademark application details or registered certificate if the name is based on trademark.
  • NOC from the trademark owner.
  • If the name is based on any other company or LLP then NOC in form of board resolution of that company or LLP.
  • Approval from any regulatory authority if applicable.
  • Any other document requirenent to to support an application.

3. Filing of web-based application 

Start with filing the name application online on the MCA portal through RUN (Reserve Unique Name) service. The following information must be provided for the application to reserve company name.

  • Whether it is a new request or a resubmission 
  • Type of company such as New company, OPC, Producer company or others from the drop-down list 
  • CIN if there is a change in a company name 
  • Provide two proposed names of the company 
  • Business activity of the company and other information 
  • Attach document as mentioned above if required

4. Payment of government fees 

The government fee for the name application of a company is Rs. 1000/-. After submitting an application one has to pay the government fees online through credit/debit card or NEFT. The name application fee is non-refundable. The payment of fees will generate a receipt with SRN to track the application or further processing. If the name is applied along with the incorporation form – SPICE, then the additional fee of name application will not be levied. 

5. Approval or resubmission of name 

On submission of name application, the MCA will process the application in 2-3 working days. One can check the company name status on the MCA portal from MCA services – Track SRN/Transaction status. If MCA finds the name is available then the ministry will approve the name and send the name approval letter. Otherwise, it will send an application for resubmission. In such a case the application status will be “sent for resubmission” and an email will be sent to the registered email id.

The email contains the time period within which re-submisison is required or else the application is rejected. After which a new application is to be filed with the fees. In case, the name is not approved in second chance then also the application will get rejected and new application to be filed.  

Validity 

The approved name will be reserved for 20 days from the date of approval. The applicant must file the form for incorporation within such period otherwise the name will get expired. If the applicant is unable to file the form within the due date then the new name application is to be filed.