Ministry of Corporate affairs has taken another major step towards ease of doing business. They have made some changes in name approval process and getting DIN of Director. Let’s have a look at some of the major changes announced by the Ministry of Corporate Affairs.
RUN (Reserve Unique Name) Web-Form
In RUN web-form, a company name can be reserved very fast and in easy way even before obtaining a digital signature. Though one name choice can be provided at one time only as compare to 6 name options in earlier case.
User must first create a user account with MCA to apply for name using RUN web-form. Post logging into the MCA account, user can choose the type of company they want to register and provide one name choice and check on the company online database and LLP names at MCA portal. Company or LLP cannot be registered with an identical or similar name to that of an existing company or existing trademark. Hence, name approval is in non STP mode and subject to CRC approval.
Option to use RUN (Reserve Unique Name) Form
Incorporation of a company can be completed with prior name approval via webform RUN or using SPICe form. If name is acceptable to CRC via RUN form, they will provide a name approval letter via email of registered user. Once the name is approved, registration of company through SPICe form can be filed.
Even, promoters who are sure that their company name is unique and wish to do incorporation of a company can directly file for incorporation using SPICe form.
Zero Fee for Incorporation of Company
Zero fees has been announced for the SPICe form, eMOA and eAOA effected from 26th January 2018. However, stamp duty would still be applicable for incorporation as before.
Director Identification Number for Incorporation
From 2018, the process for generating DIN has been distributed into the following categories:
- DIN Application for incorporating New Company
Any person who wants incorporation of a Company can apply for DIN only through the SPICe form subject to maximum 3 directors at a glance. Details of Directors (whom DIN is to be allotted on incorporation) must be filled into the SPICe form along with their PAN or Passport details. In case, if a person having DIN is incorporating a new company, SPICe form must still be used and DIN can be entered where ever applicable.
2. DIN Application for appointment in existing Company
Now DIR-3 form can be used by existing companies for adding a Director effected from 26th January 2018. The new DIR-3 form has provision of requesting the CIN of the Company to which the Director would be added and a declaration that the DIN is being obtained for adding the person as a Director to the mentioned company.
Henceforth, Now its little bit more easy to incorporate company. RUN services has some pros and cons like no DIN is require at the time of name approval but at the same time we can apply only for one name at one time.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws