In a continuous effort to ease of Doing Business in India, the Ministry of Corporate Affairs (MCA) has issued Companies (Incorporation) Amendment Rules, 2018 by replacing existing eForm INC 1 with a new improved and easy to fill web-based application known as RUN or Reserve Unique Name.
#RUN is a welcome change from the old and customary eForms MCA has asked till date. It’s a webform which does not require, DIN/DSC or any extra details.
Steps for application of Name through #RUN
A. Login with MCA either with existing ID or create a new user ID
B. Go to MCA Services> Company Services> RUN (Reserve Unique Name)
C. Fill in RUN application form and click on submit
D. Pay fees and wait till application is processed. You can check status of RUN application using same login ID at ‘Track Transaction Status’. Fees per application is Rs. 1,000/- and it does not have option of Pay Later or offline Payment. Applicant need to make payment immediately using Debit or Credit Card or through Net Banking of HDFC/ICICI/Union Bank/SBI/Indian Bank or PNB only.
E. Information/Documents required to file #RUN form:
F. Select type of Company:
G. Proposed Name with Auto check facility, which works with approx. 50% accuracy which checks if name is similar to any existing Company or previous company and has any undesirable word or not. Suffix of Name will depend on the various criteria, for eg:
H. Comments to provide for proposed object and other relevant comments about name
I. A file attachment: In case if sectoral regulator approval is availed, or TM application is available or Resolutions or any other file to be attached.
Advantages of #RUN system:
- No need of DIN (Director Identification Number) or Digital Signature Certificate (DSC).
- No need to provide other details about incorporation like proposed capital, shareholding or promoter details etc.
- Simple web form and easy to fill in with no complications whatsoever.
- With web form all the inherent limitation of e-Form filing is done away with like uploading error or DSC not registering etc.
Limitation of #RUN System
- Not more than one name can be applied
- No Resubmission is permitted
- Chances of name getting rejected is high, which may result in increase in cost for promoters of proposed company
- e-Form generally serves as a office copy, in case of web form there is no office copy of form available, applicant need to take screen shot and can preserve it for record.
This material and the information contained herein are prepared by the Author is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. The Author shall not be responsible for any loss whatsoever sustained by any person who relies on this material.
Tags :mcaCorporate Law