Rule: 9A Extension of Reservation of Name
Reserving a company name through the Ministry of Corporate Affairs (MCA) in India is a crucial step in the process of company incorporation. The Ministry of Corporate Affairs (MCA) in India often extends the validity of name reservations for companies. This action typically arises from the need to provide businesses with more flexibility and time to complete their incorporation processes, particularly in light of administrative delays or external circumstances.
Rule 9A: Extension of Reservation of Name in Certain Cases
Rule 9A of the Companies (Incorporation) Rules, 2014, was introduced through a notification by the Ministry of Corporate Affairs (MCA) on December 24, 2020. This rule provides for the extension of the reservation of a company name under certain conditions.
Purpose: The rule was introduced to provide companies with an additional window to extend the reservation of their names beyond the initial reservation period, acknowledging situations where more time is needed to complete the incorporation process.
Extended Validity Period: Normally, the validity period for a reserved company name is 20 days for new company incorporation and 60 days for existing companies changing their names. The extension might prolong these periods, allowing businesses more time to finalize their registration.
Regulatory Announcements: Such extensions are officially announced through MCA notifications or circulars, which specify the new validity periods and any additional compliance requirements.
Key Points to Remember
- Naming Guidelines: Ensure that the proposed name adheres to the LLP naming guidelines, which include restrictions on using certain words and requirements for uniqueness.
- Documentation: Have all necessary documentation ready for submission during the incorporation process.
- Fees: Be aware of the applicable fees for name reservation and incorporation filings.
Fees for Extension of Company Name Reservation
The extension of the reservation of a company name requires the filing of a specific form with the MCA, and the associated fees depend on the timing and the number of extensions requested. The primary form used for the extension is the Form SPICe+ (Simplified Pro-forma for Incorporating Company Electronically Plus).
Here are the key details:
- Initial Name Reservation: When you reserve a company name initially through the Form SPICe+ service, a fee of INR 1,000 is payable.
- Extension Request Fees: If you need to extend the reservation period, the fees are as follows:
- First Extension: INR 1,000 (for additional 20 days)
- Second Extension: INR 2,000 (for additional 40 days, before expiry of additional 20 days)
- Third Extension: INR 3,000 (directly avail 60 days extension before expiry of original 20 days)
Each extension generally grants an additional period for the reserved name, which is usually specified by the MCA in their notifications or circulars.
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