Choosing a Company Name in India: Legal and Strategic Insight

The proposed name must be unique and should not closely resemble the name of any existing company or LLP. Additionally, the name must not:

1. Include restricted terms like “Bank,” “National,” or “Reserve,” which require prior approval from the central government under Rule 8B.
2. Contain any words prohibited under Rule 8A or those restricted by the Emblems and Names (Prevention of Improper Use) Act.

Before submitting the RUN application, applicants are advised to check both the MCA name availability tool and the IP India trademark database to avoid conflicts with existing trademarks.

Steps to reserve a company name using the RUN service

To initiate the name reservation process through the RUN facility on the MCA portal, follow these steps:

1. Access the MCA portal and sign in using your registered user credentials.
2. Once logged in, go to the ‘Company Services’ section on the dashboard.
3. Click on the RUN option to begin the name reservation process.
4. Before proceeding, consult the Company (Incorporation) Rules, 2014 to ensure the proposed name meets regulatory requirements and to avoid potential rejection.
5. Enter the proposed name(s) and other required details in the RUN form.
6. Click on ‘Auto Check’ to perform an initial system check for errors or conflicts with existing names.
7. If no issues are detected, proceed by clicking the ‘Submit’ button to complete your name reservation request.

Extension of company name reservation validity

Under RUN, the reserved company name is valid for 20 days from the date of approval. If additional time is required, the validity can be extended as follows:

• Up to 40 days total—by paying an additional fee of INR 1,000 (US$11.6).
• Up to 60 days total (before the 40th day)—by paying an additional fee of INR 2,000 (US$23.2).
• Up to 60 days total (before the original 20-day expiry)—by paying a fee of INR 3,000 (US$34.8).

To request an extension, log in to the MCA portal, navigate to RUN > Extension of Reservation, enter the Service Request Number (SRN), and pay the applicable fee.

Post-approval steps to reserve company name

For applicants initiating the process via RUN, once the name is approved, do the following:

1. File e-Form MGT-14, under the Companies Act, 2013, to record the board resolution for amending the Memorandum and Articles of Association.
2. File e-Form INC-24, under Rule 29 of the Companies (Incorporation) Rules, 2014, to seek approval from the central government for the name change.
3. Receive the updated Certificate of Incorporation. This holds the newly approved name of the company.

For new companies, register the name via SPICe+; after name approval through SPICe+ Part A, proceed to Part B to complete the incorporation process, which includes:

• Application for Director Identification Numbers (DINs);
• Allotment of permanent account number (PAN) and Tax Deduction and Collection Account Number (TAN);
• Registration for Goods & Services Tax Identification Number (GSTIN) (if applicable);
• Automatic registration for Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC);
• Opening of a bank account for the company.

Once all filings are verified and approved, the Registrar of Companies (RoC) issues the Certificate of Incorporation, officially registering the business.

(With inputs from Archana Rao.)

(US$1 = INR 86.19)