yashsr (CA) (2285 Points)
25 July 2011Hello,
I'm actually trying to create a company whose name is actually quite similar to an existing Co. but has one entire word extra. I then went to MCA and was told that it not possible create such a Co. unless you file Form through STP i.e. Straight Trhough Processing. What is it and how do I do it???
vishnupriya
(CA Final)
(1418 Points)
Replied 25 July 2011
After searching in google I got this:
What Does Straight Through Processing - STP Mean?
An initiative used by companies in the financial world to optimize the speed at which transactions are processed. This is performed by allowing information that has been electronically entered to be transfered from one party to another in the settlement process without manually re-entering the same pieces of information repeatedly over the entire sequence of events.
please visit this link also:
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 25 July 2011
| Originally posted by : Yash Rungta | ||
 |
Hello, I'm actually trying to create a company whose name is actually quite similar to an existing Co. but has one entire word extra. I then went to MCA and was told that it not possible create such a Co. unless you file Form through STP i.e. Straight Trhough Processing. What is it and how do I do it??? |
 |
Hi Yash
STP means the forms will be auto-approved through system. The system would verify the deficiency if any,
and if all found correct the form will get approved. In simple terms, no manual intervention.
MCA vide its circular no. 06/2011 dated 08.03.2011 has initimated of simplified procedure for incorporation.
The Form 18/32 will be processed STP and Form 1 will be approved by ROC Only, and Form 1A & few other forms are given
higher priority approval.
Kindly check with ROC with reference to this circular, as it does not state STP Approval for Form 1.
Other option is change the name of your company such that it does not resemble the other company.
Please find attached circular for your reference.
regards
Santosh Shah
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 26 July 2011
| Originally posted by : Yash Rungta | ||
|
|
Hello, I'm actually trying to create a company whose name is actually quite similar to an existing Co. but has one entire word extra. I then went to MCA and was told that it not possible create such a Co. unless you file Form through STP i.e. Straight Trhough Processing. What is it and how do I do it??? |
|
Hello Yash
In addition to my earlier reply to your query,
Please find attached latest circular from MCA on Online Incorporation of Companies.
Now companies can be incorporated online within 24 hrs subject to accuracy of data certified by professionals.
Online Approval of DIN / Form 1/18/32 & MOA -AOA can be completed within 24 Hrs.
This shall be effective from 11/08/2011.
There by Form 1 can be approved online i.e, STP w.e.f 11th August 2011.
Hope your query is now resolved.
regards
Santosh Shah
yashsr
(CA)
(2285 Points)
Replied 26 July 2011
Hello Santosh,
Thanks for the information! However, I'm still wondering why the person at MCA who is the Deputy Registrar of Companies told me to file Form1A using STP... isn't STP i.e. Straight Through Processing something that they do and we don't have to do anything different??? I mean am I not right that we just don't have any option of filing Form 1A through STP and Form 1A not through STP???
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 26 July 2011
| Originally posted by : Yash Rungta | ||
|
|
Hello Santosh, Thanks for the information! However, I'm still wondering why the person at MCA who is the Deputy Registrar of Companies told me to file Form1A using STP... isn't STP i.e. Straight Through Processing something that they do and we don't have to do anything different??? I mean am I not right that we just don't have any option of filing Form 1A through STP and Form 1A not through STP??? |
|
Dear Yash
Kindly file Form 1A certified through practicing professional. It may go through STP.
As per my knowledge, circular does not expressly tell that Form 1A will be approved STP, but only says higher
priority approval. But also MCA has clarified that if forms are certified by Practicing Professionals then it
will be processed and will not be checked at its Back office. The onus of accuracy would be lying on professionals.
Also at the bottom of Form 1A, it states very clearly that it will go through STP, based on certification through
Practicing Professional. Also refer Latest Naming Guidelines which will be helpful.
regards
Santosh Shah
yashsr
(CA)
(2285 Points)
Replied 26 July 2011
Apparently the Form has changed in the last 10 days. When I had last downloded the Form on or about 15th July, there wasn't anything given with regards to CA. Now when I downloaded a new Form1A, I can see the 'Certificate by Practicing Professional' section.... will give it a shot.... thanks again for your help Santosh
yashsr
(CA)
(2285 Points)
Replied 26 July 2011
I'm actually trying to create a company whose name is similar to another company. So if I'm filling a form for certification, will I need a No Objection certificate (NOC) from the Company(whose name is very similar to mine) or will I require a NOC through a Board Resolution from my Company.
I think it means the former which I believe is very difficiult to obtain because we have no clue of the other company. Will we have to contact the other company ourselves in that case?
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 26 July 2011
| Originally posted by : Yash Rungta | ||
|
|
I'm actually trying to create a company whose name is similar to another company. So if I'm filling a form for certification, will I need a No Objection certificate (NOC) from the Company(whose name is very similar to mine) or will I require a NOC through a Board Resolution from my Company. I think it means the former which I believe is very difficiult to obtain because we have no clue of the other company. Will we have to contact the other company ourselves in that case? |
|
Hello Yash
In my view, there is no need for any NOC from any such other company.
You have to file form with MCA, where it will be either accepted or rejected.
The name if it is very similar then it is bound to get rejected as there will be conflict of resemblence of names between
2 companies which are not any way connected. Please refer name availability guidelines.
The Practicing Professional should take a call if such name is desirable or not as the onus would lie on him.
However its better to avoide such similar names as it may lead to issues in the future.
Other members views solciited
regards
Santosh Shah
yashsr
(CA)
(2285 Points)
Replied 26 July 2011
Actually when I click on 'Check Form', it tells me that the NOC from the other Company has not been attached, so it seems it is mandatory. Please see point no.11 in the form where it says: "In case name is similar to any existing company or to the foreign holding company, specify name of such company. Also, attach copy of No Objection certificate by way of Board Resolution".
As for the similarlity, the name already existing is something like 'ABC Animations Private Limited' whereas the name I'm opting for is something like 'ABC Animation Studios Private Limited'. Whereas the first company works in designs of fabrics, the proposed company is into computer animations which is a completely different field. So what do you think?
Ankit Patniya
(Assistant Company Secretary)
(124 Points)
Replied 26 July 2011
Hello Dear.
Here i am attaching the General Circular No. 45/2011issued by mac it might be helpful to you.
Thanks.
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 26 July 2011
| Originally posted by : Yash Rungta | ||
|
|
Actually when I click on 'Check Form', it tells me that the NOC from the other Company has not been attached, so it seems it is mandatory. Please see point no.11 in the form where it says: "In case name is similar to any existing company or to the foreign holding company, specify name of such company. Also, attach copy of No Objection certificate by way of Board Resolution". As for the similarlity, the name already existing is something like 'ABC Animations Private Limited' whereas the name I'm opting for is something like 'ABC Animation Studios Private Limited'. Whereas the first company works in designs of fabrics, the proposed company is into computer animations which is a completely different field. So what do you think? |
|
Hi Yash
In such case, check with other company if they have any objection on the proposed name.
If no objection then proceed with Filing along with their NOC. But both the names are so similar i doubt if
MCA would approve. Anyways give a try. All the best.
regards
Santosh Shah
yashsr
(CA)
(2285 Points)
Replied 27 July 2011
Hello Santosh,
Thanks again for you reply.. Have already contacted the other company but haven't received their reply as of yet and chances are very dim for the same. Isn't there any chance that I can have it done without the NOC but with attestation of a CA...??? As far as the Form goes, it seems it won't go through with the NOC, so whats the way out here???
SANTOSH SHAH
(Company Secretary)
(754 Points)
Replied 27 July 2011
| Originally posted by : Yash Rungta | ||
|
|
Hello Santosh, Thanks again for you reply.. Have already contacted the other company but haven't received their reply as of yet and chances are very dim for the same. Isn't there any chance that I can have it done without the NOC but with attestation of a CA...??? As far as the Form goes, it seems it won't go through with the NOC, so whats the way out here??? |
|
Yash
Either take NOC and apply, if not then change the name of the company and apply.
Thats the only way out to my knowledge.
regards
Santosh Shah
Malavika Bhatia
(Asst. Manager -Legal and Secretarial)
(29 Points)
Replied 27 July 2011
Dear Yash,
I faced the same problem today and My form 1 a is marked as "resubmission" , although in my case name is not resembling too much it is only the initials of the word which are similar.
But my friend it is advisable to not to go through STP as it is a certification from the practicing professionals and they are taking full responsibility for the name. ROC and RD are authorised to take penal actions against the professionals who have certified a name more than 50% similar.
So it is advisable to go through the ROC route you can laison with the officers concerned and file the form along with affidavit providing justification that your proposed company is not associated with the existing one and didnt take any advantage of the existing brand equity and goodwill.
I have done the same and my form got approved.
Cheers
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
