Home Company Law - Editorial EXTENSION OF RESERVATION OF NAME

EXTENSION OF RESERVATION OF NAME

by CS Divesh Goyal

Amendment in Companies Incorporation Rules

Summary:

MCA has issued Companies (Incorporation) Third Amendment Rules, 2020. MCA issued this notification on 24th December 2020.

MCA has introduced Rule 9A i.e. Extension of Reservation of Name in certain cases.

Applicability:

This Rule 9A shall come into effect from 26th January 2021

PRESENT PROVISION:

As per provisions of Companies Act, 2013, the Name reserved for the incorporation of the Company shall be reserved for a maximum of 20 days. If the promoter fails to incorporate Company within 20 days then the name shall expire.

AMENDED PROVISION:

The promoter can get an extension in the expiry of name through Spice+ form after payment of specified fees as follow:

S.No. No. of Days Fees Condition
1.       40 days from Date of Approval of Name Rs. 1,000 Payment required to be made before the expiry of 20 days from approval of name.
2.       Sixty Days from the date of Approval Rs. 2,000 Payment required to be made before the expiry of 40 days from approval of name.
3.       Sixty Days from the date of Approval Rs. 3,000 Payment required to be made before the expiry of 20 days from approval of name.

Conclusion:

Ministry has given this relaxation to Corporates to use reserved name up to 60 days from approval of name instead of 20 days from approval of the name by payment of specific fees.

 

Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com).

Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a piece of professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

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