About Reserve Unique Name (RUN) Service
A business name creates a massive influence on customers. It helps them to recognize a business brand.
For example, in India people are well aware of an ecommerce brand named, MYNTRA. Almost 90% of the population can identify that this platform sells products like Clothes, Shoes, etc. Myntra is a unique reserved business name.
What comes to your mind when you hear about 99Acres.com?
Real-estate, right? Similar is the case for leading brand names like Uber, Apple, Samsung, Sony, etc.
When the business is registered, it is vital to set it up as per the guidelines set by the authorities. Hence, the name approval application is examined as per the rules.
A simple process has been introduced for the approval of the company’s name. It is based on the web application called RUN (Reserve Unique Name).
This web-app is introduced by the Ministry of Corporate Affairs (MCA). The people can reserve a name for a new company. They can also change the name of the existing company. The registered member can avail this facility through the Ministry’s online portal.
RUN web service helps you to verify whether your company name is distinct or not.
Note: The company should check the vacancy of the company name. They must do it before moving with an application. It will assure that the selected proposed name doesn’t include any word. Also, the name is not under prohibition of the Companies Act, 2013.
Purpose of RUN e-form
An applicant can apply to reserve a company name through the RUN service. They can propose company name or change existing companies’ name. Further, their application will be processed by the Central Registration Centre.
Features of RUN
- Simple and effortless way to propose or change the name of the company.
- Easily accessible on the website of the MCA.
- New users have to create a log in account to avail RUN services. The existing users can log in their registered account.
- The CRC processes the application.
- The rejection or approval of an application is given through emails.
- The applicant can apply with two proposed names.
- It doesn’t require a Digital Signature Certificate. There is no need for a Director ID Number.
- The Corporate ID Number is required when applying for a name change of an existing company.
- The applicant cannot resubmit the application. If they get rejected, he/she has to make a fresh application.
Types of company names that can be reserved
The mentioned-below table defines the type of company name that can be reserved. It will be with the particular suffix:
Validity of reserved company name
The Central Registration Centre reserves the company name. It is on the basis of documents and information provided. The validity to reserve a company name is for:
It takes 20 days to confirm the company name from the consent date. This is in case to reserve a name for the new company.
The validation period to reserve the company name is for 60 days. This is from the consent date to change the current company name.
Important rules in regard to proposed name
The MCA has specified certain rules and regulations in regard to reserving the name. They are as follows:
- Unique name.
- Should not be similar to the existing company name.
- Must be desirable in the viewpoint of the Central Government.
- No abbreviations, generic and adjective words.
- Should not include expressions or words that show connection with the Central Government.
- Should not consist of an offense under any law.
Documents required to reserve a unique name through RUN
The following things are required to reserve a name under RUN:
- An account in the Ministry of Corporate Affairs.
- The proposed name.
- Corporate Identification Number
- Documents required for the proposed name.
Process to reserve a unique name
Below- mentioned are the steps to reserve a unique company name:
Login to MCA portal
The MCA registered user can file the application name. If the user does not have the account, he/she has to create an account. They will select the category from “Business user” or “ Register user”. After that, they will fill up all the details to create an account.
Note: The user will have to use the same account for all future fillings of a company.
The applicant will have to affix any document along with the application. It can any of the below-mentioned documents:
- Type of company
- Two proposed names
- Business activity, and other details.
Fill up web-based application
After the MCA notification, the company will fill up the e-form to make an application. It can be either for a new name or changing the existing name of the company.
A nominal fee of Rs.1000/- is to be paid after submitting the application. This fee is non-refundable and is subject to change as per the Act or regulation.
Generation of SRN number & challan
An SRN number will be generated after successful submission of an application form. A challan is induced as a proof of payment.
Approval or re-submit the name
The MCA takes 2-3 days to process the application. You can review the status of the company name with Track SRN / transaction status. If the name is available, the MCA will send the name approval letter. Else the email is sent for resubmission of application.
Company name reservation is an important aspect for any business. It prevents other companies from having similar names as yours.
The MCA introduced RUN as a simple-to-use web service to aid companies. It enables the user to reserve a name for a new company. They can alter the name of the existing company.
To avail of this service, you will have to create or login in your account. Then you will fill up the details and make payment. The service helps you to authenticate the distinctiveness of company names.