EXTENSION OF TIME OF THE NAME RESERVED FOR INCORPORATION OF COMPANY UNDER THE COMPANIES ACT, 2013

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When any person is desirous to know the availability of the Corporate name and wants to reserve the same before initiating the process of registration of the Company, he may do so by using the web service SPICe+ form (Part -A) (earlier RUN- Reserve Unique Name Service) upon www.mca.gov.in. wherein he may apply for the reservation of the name of the Company to the Registrar, Central Registration Centre upon payment of the fees as prescribed.

The Registrar upon being satisfied that the proposed name does not violate the Companies Incorporation Rules, 2014 (Rule 8 and Rule 8A – Undesirable names), would reserve the name for a period of twenty days within which the applicant would have to initiate with the registration of the Company. It is essential to note that the Company not registered within 20 days, the reserved name would no longer be available to the applicant.

However, on 24th December, 2020, the Central Govt. amended the Companies Incorporation Rules, 2014 by inserting Rule 9A “Extension of reservation of name in certain cases” that says, any person who has reserved the name for the proposed Company may apply for the extension of the reserved name for a further period upto-

a) Forty days from the date of first approval on payment of fees of Rs. 1000 (One Thousand) before the expiry of twenty days from the date of approval;

b) Sixty days from the date of first approval on payment of fees of Rs. 2000 (Two thousand) before the expiry of forty days referred to in clause (a) above;
or

c) Sixty days from the date of first approval on payment of fees of Rs. 3000 (Three Thousand) before the expiry of twenty days from the date of first approval.

That is to say, one can get the extension of total of sixty days depending upon the necessity of the requirement of time for initiation of the registration process of the Company in two intervals or at a stretch by making the payment of fees of Rs. 3000 for sixty days.

Conclusion:

Amidst the critical time of pandemic, this amendment of extension of time for the reserved name of the proposed Company shall surely result as a sigh of relief for the emerging entrepreneurs.

Source: G.S.R. 795(E) - Companies (Incorporation) Third Amendment Rules, 2020