New Company Name Approval Process
Posted: Nov 12, 2016
Only a few months have passed after the beginning of the year 2016 and the year so far has witnessed tremendous efforts towards boosting of the business scenario in India. Apart from the launch of plans and initiatives like the Startup India plan, the government has also been keen towards improving the existing policies and programs. One such program modified recently is the company name approval process which has now been transferred from the State offices of Registrar of Companies to a centralised name approval processing cell. Through this article we bring to you our take on the recently initiated changes.
Under the previously existing (Old) process for company name approval, all the applications filed by filling the Form INC-1 for acquiring approval for a company name were forwarded to an Officer in the office of the Registrar of Companies of the concerned state. The process was manual and the time to be consumed in the process was not set as it varied from state to state. The government and the concerned authority felt a need to modify the norms to simplify this process and make it more efficient and less time consuming. With this aim the Ministry of Corporate Affairs under the MCA notification dated 22nd January 2016, declared the establishment of a Central Registration Centre (CRC) to serve the purpose.
Unlike the existing system which was a state level affair, the Central Registration Centre (CRC) was given a countrywide territorial jurisdiction for processing of all the company name approval applications. This registration centre is governed by the Companies Act, 2013 and at the moment functions under the Registrar of Companies, Delhi (ROC Delhi).
Proving true to its purpose of existence, the new central registration centre has reduced the government processing time for approval of the company name considerably. Now it is possible to get your company name approved in merely 1-2 days. For setting up this centre, the complete procedure which previously existed has been re-created and modified to suit the requirements. The manual processing system has now been moved to a fully automated system.
In order to ensure immediate and instant clearance of applications, the Ministry has also introduced a system of zero balance in application from Tuesdays to Friday.
After achieving success in making the name approval process more efficient, the ministry is ready to set the dice rolling for modifying the company registration process by the centralisation of processing of incorporation applications.
It cannot be doubted that the centralisation of name approval has contributed significantly towards development of the incorporation process by making it simpler and quicker at the same time.
Efilingportal.in brings to you its take on the newly introduced modification in the company name approval process.
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