Earlier name approval authority was given to the respective Registrar of company (ROC) where the registered of the company is going to be registered. But recently Ministry of Corporate Affairs (MCA) has established Central Registration Centre (CRC) at IICA, Plot no. 6,7,8, sector 5, IMT Manesar, District Gurgaon, PIN Code-122050, having territorial jurisdiction all over India to grant the name approval as per the provision of the act.
The MCA envisaged this because of the diverse practices adopted by the different ROCs all over India. Therefore, to avoid different practices, MCA has established this CRC as a single centre which has absolute authority to discharge its functions.
The impact of this is going to be good for the stakeholders definitely because it reduced the name approval time considerably and relinquish the practices being followed at various ROC’s.
But the one problem is that CRC has the authority only when name approval application filed through INC-1. In a case of company incorporation process is being done through INC-29 then the name has been approved by the respective ROC of the state where the registered office of the company will be situated
MCA has also changed the rules with respect to incorporation of the company and name approval as follows:
- Now there is no requirement that name of the company must indicate its object. Earlier there was a requirement that name must be in consonance with its object otherwise the name was considered to be undesirable.
- Earlier abbreviated name based on the name of promoters was not allowed and considered as vague. But, now promoters can keep any name of the company and the same shall not be objected of being vague.
- As stated earlier, that name of the company used to reflect its core business and if the company changed its activities then the company had to change the name accordingly within 6 months of changes in the business activities. But now there is no requirement to change the name of the company if there is a change in the business activity. The company can continue to retain its name even after changing business object or activities.
- Now if you propose a name for your company which includes a word which is a name of a person, then you don’t need to take any approval from the concerned person whose name is being used in the proposed company name as per the amended rules. This was the requirement under the old rules.
5. In INC-29 form, earlier there were only two opportunities used to be given but now three opportunities are given.