What is MCA-RUN?
MCA stands for the ministry of corporate affairs, and RUN stands for reserve unique name. RUN is a new web-based application launched by the ministry of corporate affairs on 26th January 2017 to simplify the company name approval process.
MCA-RUN is a very simple and easy process of reserving a name for your company or changing the name of your existing company.
Previously, all company name approval applications were submitted through form INC-1 along with a minimum of 2 director’s identification numbers & 1 digital signature. However, after introducing the "RUN" web-based application, it becomes easy for every business owner to reserve a name for their company without any digital signature requirement.
Purpose of MCA-RUN E-Form
Any applicant looking for name reservation for his or her new company or looking for change in an existing company name can easily does name reservation through the web based “RUN” application. After submitting the application, the application is processed by central registration center (CRC). The proposed name applied by the applicant for the approval should comply with MCA rules & regulations.
Name Reservation Under MCA-RUN
Before you get name reservation under “MCA-RUN”, you must know about what we will “suffix” after the name of the company for various types of companies. The information is as follows –
Sr.no | Company type | Suffix used | Example |
1 | Private limited company | Limited/Private limited | ABC limited/DEF private limited |
2 | Section 8 company | Other than limited/private limited/(OPC) private limited | CDE electoral trust |
3 | Nidhi company | Nidhi limited | MCD Nidhi limited |
4 | Producer company | Producer company limited | JKL producer company limited |
5 | OPC (private limited) | OPC (private limited) | ABC (OPC) Private limited |
6 | IFSC company | (IFSC) limited/(IFSC) Private limited/IFSC limited/IFSC private limited | DEF IFSC Limited/DEF (IFSC) Limited/FAD IFSC Private limited/FAD (IFSC) private limited |
7 | Unlimited company | Unlimited | ADF unlimited |
Validity of Reserved Company Names
On the basis of information & documents provided by the applicant, central registration center (CRC) reserves the company name for a period of –
- 20 days from the date of approval in case the new name is provided to a company
- 60 days from the date of approval in case of change in the name of the existing company.
Important Rules Regarding the Proposed Names
There are certain rules & regulations specified in relation to reservation of the names by MCA and are as follows –
- The proposed name should be unique
- The proposed name should not be identical to the name of any existing company registered under the companies act, 1961.
- The proposed name should not comprise of an offence under any law & should not be undesirable in the opinion of central government.
- Abbreviation, adjectives & generic words should not be there in the name.
- The company name should not include any word or expression which gives an impression that in any way company is connected with state or central government or any other local authority. In such case, you need to get approval from the concerned government authority.
Requirements to Reserve a Unique Name Via MCA-RUN
- Proposed name
- Relevant documents
- Corporate identification number
- MCA account
Process for Using MCA-RUN
- Before using the RUN service, you must open an account with MCA. It is necessary to open an MCA account to access this service. After logging into MCA account, input the name you wanted to use & check its availability across MCA database & LLP names in order to reserve the proposed name.
- If you wish to change the name of your existing company, it is necessary to input corporate identification number in RUN “e-form”.
- The applicant needs to enter the proposed name in the e-form in order to incorporate a new company or to change the name of the existing company.
- The applicant needs to enter the object of the proposed company along with the supporting comments or documents for the proposed name.
MCA-RUN: Post Submission Process
The process after form submission is as follows –
- Generation of SRN number - After successfully submitting the applicant's proposed name in the RUN e-form, an SRN number will be generated. Kindly save this number for future reference.
- Generation of challan - A challenge will also be generated after successfully submitting the proposed name and payment of the prescribed fee. Challan is considered as proof of payment by the applicant to MCA.
- Sending an E-mail - An e-mail is sent to the applicant to inform him regarding the acceptance or rejection of the proposed name by MCA. It also serves as an acknowledgement from the MCA side to the applicant for name approval or rejection.
- Approval/Rejection letter - In addition to the e-mail, an approval or rejection letter has also been sent to the applicant along with the related documents (if necessary) to the e-mail ID of the applicant.
- Re-submission (If rejected) - If the proposed name is rejected by the MCA, no resubmission is allowed. If you want to apply again with a new proposed name, a fresh application should be submitted to MCA along with a payment of Rs.1000 as a fee. You can also not edit the submitted form.
- Fee rules - A nominal fee of Rs. 1000 is to be paid while applying for the company title. Please note that the fee payable is subject to changes concerning the Act or any regulation. If in case such a change occurs, a notification informing the same will be issued by the MCA.
MCA-RUN FAQ's
Q1 - What are the RUN(Reserve Unique Name) web service's features?
It is a straightforward and simple-to-use web service for reserving a name for a new business or changing the name of an existing one.
Q2 - What is a CIN number, and when must it be entered?
Ans2 - CIN stands for Corporate Identification Number, and it is required only when an existing business wishes to change its name and is utilising RUN to reserve a new name.
Q3 - Is it possible for a user who has an approved name to allow other users/applicants to use the name?
Ans3 - No, The user login ID used to reserve the domain name must also be used to submit and upload SPICe, INC-12, and INC-24 forms.
Q4 - What is the maximum number of names that can be submitted for the RUN Application?
Ans4 - Under the RUN Application, only one name may be submitted. There is no possibility to input multiple names in order of their preference.
Q5 - How many re-submission opportunities are available for a single RUN application?
Ans5 - There is only ONE Chance, and re-submissions are not permitted. The requested name will be approved or denied, and no re-submission is permitted.
Q6 - Is it possible to obtain a refund of the fee if the name is rejected?
Ans6 - No, the MCA does not return fees for rejected RUN applications.
Q7 - Who can file the Incorporation Documents for a Company name approved under RUN?
Ans7 - The Incorporation Documents for a company name approved under RUN may be filed ONLY from the user ID associated with the name reservation.
Q8 - Is RUN (Reserve Unique Name) available for reservation of LLP Name?
Ans8 - Yes. RUN (Reserve Unique Name) is also available for reserving an LLP's registration.