Since the Companies Act was updated, the procedure for forming a private limited company has altered. Previously, the Ministry of Corporate Affairs (MCA) required separate paperwork to be submitted to reserve a company’s unique name. In this blog, let’s look at the extensions of the reservation period for company names given to businesses throughout the pandemic.
Do you want to reserve the names of your businesses so that no one else may use them soon? Think again if you believe that is impossible! You can book or modify your company name using the Reserve Unique Name (RUN) web service and Spice + form A. Even determining whether the firm name is distinctive is made more accessible by it. Before the Ministry of Corporate Affairs introduced the RUN, form INC-1 (MCA) was accessible for all business name applications.
What Is the reservation period for company names?
Companies must first reserve their names with the RoC (Registrar of Companies) by the Companies Act of 2013. Additionally, if a company wants to change its name, it must reserve it. The CRC (Central Registration Centre) can reserve the company name for a specific time, thanks to the information and paperwork it receives from businesses. The Central Registration Centre (CRC), which holds the company name for a predetermined amount of time, will receive the information and papers that the RoC gets from the companies.
- The reserve time is 20 days for the incorporation of a new company.
- The reserve time for renaming an established business is 60 days.
- The reserve time for new registrations and name modifications for existing LLPs (Limited Liability Partnerships) is 90 days.
Reservation period for company names Granted for New Company Incorporations During the Pandemic
According to MCA regulations, new businesses must submit Part B of the SPICe+ within 20 days following the name reservation. You have 20 extra days (beyond May 31) to offer the SPICe+ Part B form if you are a new company whose name expires on any day between May 15 and May 31, 2020. Use your assigned user ID and password to log into the MCA web portal before submitting this form. Your approved company name can be found on your dashboard after logging in. Click the link that shows your SRN or application number to proceed.
Extension Granted for Existing Companies
Existing businesses that wanted to modify their company names had 60 days from the date of the reservation period for company names to file the INC-24 form. You must apply to modify your company name if it has already been incorporated. This suggests that you have been given 60 additional days (beyond May 31) to file the INC-24 form if your company name has expired on any day between May 15 and May 31.
Extension Granted for RSUB Validity
The MCA even extended the SRN’s (Service Request Number) RSUB (Resubmission) validity for businesses whose resubmission dates were set to expire between 15 March and 31 May 2020. An additional 15 days beyond May 31 have been given for such companies. Nevertheless, the extension was offered case-by-case to businesses with SRNs in the NTBR (cannot Take on Record) category.
Extension Granted for LLPs for Reservation Period For Company Names
According to the Companies Act of 2013, LLPs must first do Reservation Period For Company Names e with the RoC (Registrar of Companies) to incorporate their business. Existing LLPs can modify their company names by following the same method. New incorporations must submit the FiLLiP (Form for Incorporation of LLP), and for existing businesses they must submit Form 5 (Change of Name Notice), both of which must be done within 90 days of the name reservation. LLPs whose names were scheduled to expire between 15 March and 31 May 2020 were given an extension of 90 days past that date as part of these relaxation measures.
Extension of LLPs’ RSUB Validity
The MCA extended the validity of RSUB (Resubmission) of the SRN (Service Request Number) for LLPs whose resubmission dates were due to expire between 15 March and 31 May 2020. Additionally, an extension of 15 days past May 31 was given to such LLPs. For LLPs with SRNs in the NTBR (cannot take on Record) category, an extension was given on a case-by-case basis.
Extension for Marking IEPF-5 SRNs to Pending for Rejection Category
Companies may also submit an IEPF-5 application to the IEPF (Investor Education and Protection Fund) to request unpaid funds. Additionally, the MCA extended the e-verification report filing date until September 30, 2020.
SRNs whose regular and resubmission due dates fell between 15 March and 31 May 2020 could file by 30 September. For SRNs already in the ‘Pending for Rejection’ category, an extension was given on a case-by-case basis.
The Importance of Reservation Period For Company Names
A critical first step in the incorporation procedure is the Reservation Period For Company Names. In addition to acting as the company’s public face, a distinctive and distinctive character is crucial for brand recognition and market positioning. The limited limitations of the pandemic can make it challenging to complete elaborate procedures and precise planning necessary to secure an appropriate name.
Extension of Reservation Period: Alleviating the Burden
Regulatory authorities have extended the Reservation Period For Company Names in response to the issues the pandemic has caused for businesses. With this extension, company owners and entrepreneurs will have more time to obtain the words they want without the added stress of fulfilling tight deadlines. By providing more time for thought and consideration, this measure enables firms to make well-informed choices about their branding strategy and long-term objectives.
Facilitating Business Continuity and Growth
In addition to easing the immediate pressures on businesses, extending the reservation period promotes an atmosphere that is resilient and supportive of ongoing growth. This regulation action acts as a catalyst for improving the overall business environment, stimulating innovation, and fostering stability within the corporate landscape among the uncertainties and disruptions brought on by the pandemic.
Promoting Adaptability and Agility in Reservation Period For Company Names
Because of the pandemic’s fluid nature, firms must adopt a flexible and adaptive strategy. Regulatory organisations have effectively realised the necessity for agility in the face of unforeseen circumstances by extending the reserved time for company names. This recognition highlights the value of creating an atmosphere that encourages adaptability and equips companies to navigate uncertainty while upholding their strategic objectives.
Looking Ahead: Building a Resilient Business Ecosystem
The extension of the reservation Period For Company Names is evidence of the tenacity and spirit of cooperation of the international business community as the world progressively recovers from the epidemic’s effects. Regulatory bodies and enterprises must cooperate to implement policies supporting a smooth and effective business climate, encouraging innovation, growth, and prosperity.
Conclusion
A vital component of the more significant initiatives to create an environment that supports business growth and innovation is extending the Reservation Period For Company Names period. This action has not only protected the interests of business owners but also strengthened the resilience and adaptability of the global business ecosystem by giving enterprises the necessary flexibility and time to overcome the pandemic’s obstacles. Stakeholders must work together and innovate as we navigate the post-pandemic era’s challenges, creating the foundation for a more robust and dynamic business environment.
