In a notification dated 24th December 2020, the Ministry of Corporate Affairs (MCA) has issued the Companies (Incorporation) Third Amendment Rules, 2020 (Amendment Rules). The Amendment Rules allow the extension of reservation of name in certain cases. A new provision Rule 9A has been inserted in this regard.
Key Highlights-
• The period for any name reserved under Rule 9* of the Companies ( Incorporation) Rules, 2014 can now be extended by making an application using the web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) and paying fees through the web service available at www.mca.gov.in
• Extensions would be granted by the Registrar as follows:
a) 40 days from the date of approval under rule 9, on payment of fees of Rs.1000/- made before the expiry of 20 days from the date of approval under rule 9;
b) 60 days from the date of approval under rule 9 on payment of fees of Rs. 2000/- made before the expiry of 40 days referred to in the clause above;
c) 60 days from the date of approval under rule 9 on payment of fees of Rs. 3000/- made before the expiry of 20 days from the date of approval under rule 9.
• The new Rule 9A also empowers the Registrar to cancel the reserved name in accordance with the provisions of the Companies Act, 2013.
• Part A of SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus FORM NO. INC-32) is also updated accordingly.
The Amendment Rules are effective immediately. Please refer to the hyperlink below for further details.
*Rule 9 – Reservation of name or change of name – An application for reservation of name shall be made through the web service available at www.mca.gov.in by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32), and for change of name by using web service RUN (Reserve Unique Name) along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre after allowing re-submission of such web form within fifteen days for rectification of the defects, if any, with effect from the 23rd February, 2020.
Source: Ministry of Corporate Affairs
