How is a company name approved in India?


The entire process of approval of Company name in India is given in the Companies (Incorporation) Rules, 2004 (specifically Rule 8) and the subsequent amendments.

The process to obtain company name approval is to apply via the RUN form (RUN - Reserve Unique name) on Earlier the process of Company name approval was with form INC-1 but the same has now been replaced with the RUN Form. A person can enter 2 names with the significance of the same and attachment for the same. Once the names required for Company name approval are entered, there is a process of auto-check where there is a preliminary check on the availability of names. On this preliminary clearance, the form can then be submitted for processing at the Centralised Registrar of Companies (RoC-CRC). There is a provision for attachment of documents also where one can attach Board Resolutions for Company name approval in case of similar names or application of trademark already made in respect of the name or any other relevant document. If the RoC-CRC approves the name, a name approval letter is given which is valid for 20 days. If not, the RoC-CRC will then send the form for resubmission with the reasons for so. The form can then be resubmitted taking care of the earlier reasons for resubmission. If the RoC- CRC is satisfied with the resubmitted form, it will approve the form or else it will reject the form. Then a fresh form for name approval has to be filed altogether.

Practically, name approval has become one of the most difficult things to accomplish in the entire incorporation process in India because of rules requiring the prefix to have unique names etc.

Article by CA Bhavesh Savla