Company Registration
Company Registration

What is Reserve Unique Name | The Features of RUN

Reserve Unique Name

What is Reserve Unique Name?

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.

What are the Features of RUN?

  1. RUN is effortless to use web service for
    • Reserving a proposed name for a new company, or
    • Changing of the name for an existing company.
  2. RUN can be accessed on the official MCA site, under the head of MCA services.
  3. Being a post-login service, to avail the RUN service, the existing users require to login into the registered account. New users have to create a login account before they can avail the Reserve Unique Name (RUN) service.
  4. Applicants are permitted to apply for two proposed names and one Resubmission (RSUB).
  5. RUN form doesn’t require any Director Identification Number (DIN) or a Digital Signature Certificate (DSC).

What Details are Required to be Submitted for RUN Service?

  1. The applicant must select if it is a ‘New Request’ or ‘Resubmission’
  2. Following details shall then be required:
    1. SRN- Service Request Number, in case of a resubmission;
    2. Entity type: It represents the Type/Class/Category of the proposed company It has the following options along with the suffixes which shall be allowed based on the type of entity selected:
      • Part 1 company- Limited / Private Limited
      • Producer Company- Producer company limited\
      • Unlimited company- unlimited
      • OPC- (OPC) Private Limited
      • IFSC company- (IFSC) Limited/ (IFSC) Private limited/ IFSC Limited
      • Nidhi Company– Nidhi Limited
    3. CIN- Corporate Identification Number has to be entered when an existing company is applying for a change of name;
    4. Two Proposed names- The proposed names entered must not be in contravention to the provisions of Section 4(2) & (3) of the Companies Act, 2013 and Rule 8 of the Companies (Incorporation) Rules, 2014.
    5. A through name search and a public trademark search must be to ensure that the application is not rejected. These services can be availed on the MCA official site.
    6. Comments, if any, may be submitted. This may include the importance or significance of the proposed name, serving as the justification for the same.
    7. Relevant documents and No Objection Certificates (NOC) may be submitted if required as per the prescribed rules.
      • Only one file is allowed, not exceeding 6MB.
      • For multiple attachments, a single file must be compiled, not exceeding 6MB.
  3. Each submission shall be charged at Rs. 1000 paid through challan generated depicting the details of the fees to be paid by the user. This fee is irrespective of whether the name is approved or not.
  4. Once the name reservation request is submitted, it shall then be checked, and if found feasible, approved by the Central Registration Centre (CRC). An email from CRC shall inform about the outcome of the name reservation.
  5. The approved name is valid for a set period of time from the date of approval, for further steps:
    • 20 days, for a new company, or
    • 60 days, when changing the name of an existing company.
Narendra Kumar

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