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RUN (Reserve Unique Name) Company Name Approval Process

Published On: Feb. 26, 2018 By:
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All about RUN (Reserve Unique Name)

Now Reserve Unique Name (RUN) at ease of just a web form and kick start your business with Zero fees Incorporation. The Ministry of Corporate Affairs or MCA has sanctioned Companies (Incorporation) Amendment Rules, 2018 as a replacement to the existing e Form INC 1, with an innovative, enhanced and undemanding way to facilitate businesses conducted in India. This web-based application is known as RUN or Reserve Unique Name. The RUN (Reserved Unique Name) service introduced by the Government also guarantees “Zero Incorporation Fee” for all Companies with Authorised Principal Capital up to Rupees Ten Lakhs. RUN will be is a well-embraced change from the erstwhile and long-established e-forms suggested by MCA. This web form does not have need of DIN or DSC or any additional details.

Steps for application of Name by means of RUN

  1. Firstly, one has to Login with MCA either with accessible ID or else he or she has to create a new user ID 2. Secondly, the individual has to choose MCA Services> Company Services> RUN, in the mentioned order. 3. Thirdly, the individual has to fill the RUN application form and thereby click on submit. 4. In the next step, the entity shall pay the fees and wait for the application to process. One may then check the status of the RUN application by using the similar login ID at ‘Track Transaction Status’. The fee for one application is Rs. 1,000. Furthermore, there are no options to pay afterward or pay by offline mode. The applicant must make payment instantaneously by using Debit or Credit Card or via Net Banking (HDFC/ICICI/Union Bank/SBI/Indian Bank or PNB only).

Documents mandatory to file RUN

  1. First, the individual has to select the type of Company
  2. The entity has to enter CIN only if the Company exists already.
  3. The option of Proposed Name with Auto check facility works with fifty percent accurateness, which ensures if the name is parallel to any existing Company or preceding company, and further ensures if the company has any objectionable remark or not.
  4. In addition, comments should be provided in case there is any proposed objection as well as other relevant comments concerning.
  5. A file attachment is necessary when the sectoral regulator approval is acquired. Also, the file attachment is necessary when TM application is available.

Advantages of RUN system

  1. DIN (Director Identification Number) or Digital Signature Certificate (DSC) is not necessary in this case.
  2. There is no need to offer other details about incorporation such as anticipated capital, shareholding or promoter details and so on.
  3. This application has a simple web form, which can be easily filled in with no impediments. Also, it is a time-saving application.
  4. This web form negates all the inbuilt drawback of eForm filing such as uploading error or DSC not registering and more.
  5. This application does not require Form INC-1, INC-7, INC-2 , DIR-3.

Limitation of RUN System

  1. It is not possible to apply for more than one name.
  2. Resubmission is not permitted.
  3. The probability of name getting rejected is quite high. This may further result in increase in expenditure for promoters of an anticipated company
  4. In case of eForm, it usually serves as an office copy. However, in case of a web form , there is no office copy of the form, which is The applicant is required to take a screenshot if he or she wishes to preserve it for the record.
  5. In order to submit one application, applicants are required to pay Rs. 1000 just for proposing one name only. Previously, six names could be proposed by means of INC-1 form.

In conclusion, “All the details about RUN-Steps, Advantages, and Limitations”, is a great initiative taken by the MCA. In order to avoid rejection of the name, an entity must read Companies (Incorporation) Rules, 2014 and conduct their own name and Trade Mark research systematically.

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