So far in our series, we discussed the process of obtaining the DIN and DSC for the proposed Directors. We can now start the process of company name approval by the Registrar of Companies (ROC) in the State/Union Territory in which the company will maintain its Registered Office. This approval is provided subject to certain conditions:
- There should not be an existing company by the same name.
- Further, the last words in the name are required to be “Private Ltd.” in the case of a private company.
- The application should mention at least four suitable names of the proposed company, in order of preference. In the case of a private limited company, the name of the company should end with the words “Private Limited” as the last words.
- The applicant should ensure that he/she mentions in brief, the significance of the proposed names.
- Also mention the main objective of the proposed company (ie. Business activity to be carried out).
- Full information such as the personal details – Full name, Father’s full name, date of birth, residential address etc. is required for all the promoter Directors.
- Remember, the minimum paid up share capital required for setting up a Private Company is Rs. 1 Lakh, with a minimum of two shareholders and two directors (who can be shareholders).
- The ROC generally informs the applicant within three working days (by email) and within seven working days (by letter via speed post) from the date of submission of the application, whether or not any of the names applied for is available.
- The approval letter is only for availability of name for the proposed company. The applicant cannot start business or enter into any agreement, contract etc. in the name of the proposed company, until and unless a certificate of registration is obtained.
- Once a name is approved, it is valid for a period of six months, within which time Memorandum of Association and Articles of Association together with miscellaneous documents should be filed. If one is unable to do so, an application may be made for renewal of name by paying additional fees.
- After obtaining the name approval, it normally takes approximately two to three weeks to incorporate a company depending on where the company is registered.
- The cost involved for Company Name Approval (for Rs. 1 Lakh Authorised Capital) is around Rs 6500-00
You can download the application e-Form (Form 1A) for availability of a name. The downloaded zip file contains the e-Form with Instruction kit.
What has been your experience? Do you find the process very cumbersome and time consuming? Are there any suggestions?