New Delhi, March 26, 2018
MCA offers facility at no additional cost; resubmission also possible
KR Srivats Getting a name of your choice for the company that you want to incorporate just got easier.
The Ministry of Corporate Affairs (MCA), as part of efforts to provide greater ease to stakeholders, os now allowing two names to be proposed in the application for reservation of unique names (RUN). This facility will come without any additional fee.
Even if the proposed two names get rejected under the RUN web service, available at www.mca.gov.in, the Centre allows one-time resubmission after rectification of defects, if any.
Getting a name of one’s choice was a big pain point in the erstwhile regime, as only one name could be proposed, say professionals involved in the incorporation of companies.
Moreover, earlier, an applicant would have had to earlier forego the fees if the proposed name got rejected. Now, the applicant gets a wider choice for the same amount of fee, they said. The icing on the cake is they also get to resubmit an application once without having to pay more, they pointed out.
Corporate professionals rue that the current automated system has made it difficult to obtain ‘unique names’. A big problem is there is no helpdesk or grievance redressal procedure if names get rejected. It may be recalled that “name availability” was initially a manual process, then it became a “machine process”.
“Earlier, if your name was accepted by the machine, then well and good. If it is rejected, then you lose the money. Now, they are saying we will get one more attempt — resubmission for a fresh name if we are unsuccessful with the earlier name,” said a professional who did not wish to be identified.
The Centre has now cut short the time within which the incorporation process has to be completed from the date of “name approval” to 20 days. Earlier, it was 60 days.
The entire process for naming a company is now almost controlled by “artificial intelligence” without room for “human intelligence” to intervene.
“Today with no human intervention, one does not know who to approach for remedy in case of name approval”, rued another professional.
[The Hindu Business Line]