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When deciding to set up a business of any kind, the most important step is to select a name that is both unique and describes the product or services aptly. The Features of reserve unique name should stand out from the crowd in the market. The name is what shall bring distinction to the business.
Additionally, when the business is being registered as a company, it is further essential that it holds good against the guidelines that are laid down by the Authorities. When the application for reserving a proposed name is made to the prescribed authority, the name is scrutinized as per the rules. Thus, it should always be assured that the proposed name does not contravene with various provisions of Section 4(2) & (3) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014.
Hence it should be noted that while initiating with the registration of a company, selecting of valid name and reserving it is not only the first step but also, is of utmost importance.
Ministry of Corporate Affairs, through the notification dated 20th January, which came into force from the 26th day of January 2018, made a few rules to amend the Companies (Incorporation) Rules, 2014. Rule 9 was substituted, and RUN – Reserve Unique Name application was introduced. Form INC-1 which was earlier available for application of reserving the proposed name is no more valid now.
This step is taken prior to the filing of SPICe incorporation form for registration of the company. Though, the name for the company may be applied through SPICe as well.
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