Now Company name to be reserved for only 20 days – File it or forget it

In another move to simplify the company registration procedure and to reduce the time taken for company registration in India, the government has reduced the reserved name validity from 60 days to 20 days to compel the promoters, professionals to file the company registration form within 20 days.

In simple words, from now on file the company registration forms like SPICE etc within the 20 days after the name approval otherwise your approved name reservation will over and you will need to file it again.

What do you mean by name validity in Company registration procedure?

To register a company in India, one needs to choose a company name which is then filed with the government for approval. Government verifies the name and approves it if it finds it ok.

Once the name is approved, the promoters need to file the incorporation form within 60 days. This is because the name is valid for 60 days. The 60 days period is known as name validity period which has been reduced to 20 days.

Why has it been reduced from 60 days to 20 days?

This has been done to promote faster filing of company incorporation forms so that the actual time taken for company registration can be reduced and India can improve the ease of doing business in world rankings.

What will happen if Company registration forms are not filed within 20 days?

If company’s forms are not filed within 20 days, then name reservation will be over and the promoters will need to file the name approval application with the ROC again.

How the name rules changes came into force?

The Companies Amendment Act, 2017 has already been passed by the government, however, some of the provision of those act have not been made effective. However, after issuing the notification in the official gazette, the remaining provision relating to name reservation has been made effective.

For more information, please email us at info@hubco.in.

Like and share this article :