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16 FAQs on RUN (Reserve Unique Name)

Published On: Feb. 26, 2018 By:
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16 Major FAQS ON RUN

The following 16 FAQs on RUN (Reserve Unique Name) provides a better understanding of the new company name approval system launched by Ministry of Corporate Affairs (MCA) in India.

Q.1 What are the characteristics of RUN or Reserve Unique Name web service?

Ans: RUN or Reserve unique name is a trouble-free and simple web service for company name approval, which assists in reserving a name for a new company or for modification of name for an existing company which have unique name for company..

Q.2 What is the first step for obtaining the service provided by RUN?

Ans: RUN is a post-login service, which requires the existing users to log in to their account by using their credentials. In case of new users, they are expected to generate a login account first, prior to availing the service. Once the login is completed, new users may click on the RUN (Reserve Unique Name) icon located right under the head ‘MCA Services’. Once the icon is clicked, the ensuing web page will come into view.

Q.3 What do we mean by Entity Type?

Ans: Entity Type stands for the Type or Class or Category of the anticipated company lest the name is being held in reserve for incorporating a new company. The following options are available along with the suffixes which will be permissible on the basis of the type of entity selected.

Q.4 What is the importance of CIN? When does it have to be entered?

Ans: CIN is the short form of Corporate Identification Number. This number has to be entered only when an existing company desires to modify its name and is employing RUN to preserve a new name.

Q.5 What is to be entered in the space “Proposed name”?

Ans: The existing user has to insert the name he or she wishes to reserve, for incorporation of a recent company or for altering the name of an already existing company. Furthermore, for company name approval the users must ensure that the anticipated name selected does not enclose any word which is prohibited as per the Section 4(2) & (3) of the Companies Act, 2013. They are requested to read and comprehend Rule 8 of the Companies (Incorporation) Rules, 2014 in respect of any proposed prior to its application. For mca portal check company name: In case of takeholders, they are requested to also check the Trademark search to make certain that the proposed name is not in contravention of provisions as stated in Section 4(2) of the Companies Act, 2013, in the absence of which, it is held accountable and is rejected. For Trade Mark Search:

Q.6 What is the validity of a reserved name?

Ans: A sanctioned name is legitimate for a period ..,

  1. In case name is being reserved for a new company, then 20 days from the date of approval
  2. In case of modification of name of an existing company, 60 days from the date of approval.

Q.7 What is required to be entered in the space “comments”?

Ans: The user is given an opinion to enter the objects of the proposed company along with any other pertinent remarks to sustain the proposed name.

Q.8 Is it mandatory to attach documents while reserving a name?

Ans: No , However, it is mandatory to attach pertinent documents along with No Objection Certificates (NOCs) in case a name requires the approval of a Sectoral Regulator or NOC and so on as mentioned in the Companies (Incorporation) Rules, 2014. In addition, only one file can be uploaded as an attachment and the size of the file should not go beyond 6 MB. In case of several attachments, please scan all credentials into a single file and file size shall not exceed 6 MB in size. After following these simple directions, the file can be uploaded.

Q.9 What is the Fee payable?

Ans: Rs.1000 is payable for each submission.

Q.10 What is the next step after ‘Submit’?

Ans: On completing the submission successfully, the proposed name and the payment challan will be engendered representing the details of the fees paid by the user.

Q.11 Is ‘Resubmission (RSUB)’ allowed?

Ans: No. The name applied for by the user will either be accepted or rejected. As a result, no resubmission is allowed. A fresh payment of Rs.1000 has to be made when an application is submitted by using the RUN service.

Q.12 How are the names applied by means of the service are processed?

Ans: In case of Name applications, it will be processed by Central Registration Centre (CRC) under Non-STP mode. The name applied for will be thoroughly scrutinized by the Central Registration (CRC) having unique name for company and thereafter the name will be approved or rejected. This shall be informed to the applicant by e-mail.

Q.13 What defense mechanism shall be adapted to avoid rejection of names applied for?

Ans: In order to avoid rejection of the name applied for, users are recommended to be accustomed to the Companies (Incorporation) Rules 2014, as amended, and carry out their own Name and Trade Mark search. The links for these searches are available independently on the portal, which can be clicked prior to the submission of applications.

Q.14 How does the user get notified upon approval/rejection of the names applied for?

Ans: In case a proposed name is approved or rejected, an email is sent to e-mail id provided by the applicant, which contains the confirmation of approval/rejection supported by relevant documents. Name approval/ rejection letter upon approval/ rejection of the eForm is generated by the system. Furthermore, these documents shall be digitally signed by the Registrar and forwarded to the email id of the applicant. Rejection letter is engendered on the basis of rejection codes identified by the Ministry.

Q.15 Can a user who has an approved name using the service, allow other users/applicants to use the name?

Ans: No , The same user login ID which was used for reserve the name has to be employed for putting forward and uploading SPICe, INC-12, and INC-24 forms.

Q.16 Whether RUN (Reserve Unique Name) System is beneficial?

Ans: Although the RUN (Reserve Unique Name) system is an innovative ideal concept launched by MCA but still when compared to previous company name approval system it lacks the options of applying multiple names in single application with single fees which makes it bit rigid. This 16 FAQs on RUN (Reserve Unique Name) will definitely give us a broad understanding about the new company name reservation system and its features.

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