Name Reservation for a Public Company in India: A Simple Guide

Starting a Public Limited Company (PLC) in India is an exciting milestone on your entrepreneurial journey. One of the first essential tasks you must complete is Name Reservation for a Public Company in India, ensuring your company secures a unique and legally compliant name. This method, that’s controlled with the aid of the Ministry of Corporate Affairs (MCA), guarantees that your agency’s call is precise, legally compliant, and available for use. In this guide, we’ll walk you through everything you want to understand approximately reserving a name on your public corporation.

What is Name Reservation?

Name Reservation for a Public Company in India is the process of applying to the Ministry of Corporate Affairs (MCA) to secure a unique name for your Public Limited Company. This crucial step ensures that the chosen name is not already in use and complies with all legal regulations. Once the name is reserved and approved, it grants your company a distinct identity that is legally protected.

Why is Name Reservation Important?

There are some key motives why call reservation is so crucial to your commercial company:

1. Legal Protection: By booking your call, you prevent unique organizations from using the identical or a comparable name. This ensures there’s no confusion amongst businesses and maintains you safe from crook disputes.
2. Brand Recognition: A specific enterprise name is regularly the number one affect clients and potential companions can have of your commercial enterprise. Having a call that stands proud can assist construct a robust emblem identity that’s smooth to recall.
3. Compliance: Reserving a call via the MCA ensures that your enterprise name follows the jail regulations set out inside the Companies Act, 2013. This lets in you avoid troubles with the regulation down the street.

Steps to Reserve a Name for Your Public Limited Company

Now that we’ve blanketed why name reservation is crucial, permit’s take a look at the smooth steps worried inside the process.

      1. Choose the Right Name

The first step in Name Reservation for a Public Company is to choose a name that is meaningful, precise, and suitable for your business. Here are a few suggestions to guide you:

• Make it Unique: Your employer name must be distinct and now not too similar to every other cutting-edge commercial enterprise organization or trademark.
• Reflect Your Business: Ideally, the call need to offer an concept of what your corporation does or the business enterprise it’s in. It’s constantly a top notch concept for the call to align collectively together with your commercial enterprise values and vision.
• Follow Legal Guidelines: The name must observe the Companies Act, 2013. Avoid using confined terms like “Bank,” “Insurance,” or “National,” until you have got special permission.
• Suffix Requirement: For a public restricted organisation, the name have to give up with “Limited” (e.G., XYZ Limited). This suggests that it’s a registered public commercial enterprise organisation.

Pro Tip: In Name Reservation for a Public Company, choose a name that is not just legally compliant but also catchy and easy to remember. A name like “Best Services” might be too common, so think outside the box.

     2. Check if Your Name is Available

Once you’ve selected a call, you want to make sure it’s to be had. To do this:

• MCA Name Search: The MCA has a web device in which you could take a look at in case your proposed name is already in use with the aid of another enterprise. This is an essential step earlier than you follow for reservation.
• Trademark Search: Check if someone has registered the name or something similar as a trademark. Using a trademarked name can lead to significant legal issues.

If your chosen name is already taken, don’t worry. Simply come up with a new one and try again for Name Reservation for a Public Company.

     3. Prepare Your Application

Once you’ve confirmed that the name is available, it’s time to apply for Name Reservation for a Public Company. There are two essential forms you can use:

• RUN (Reserve Unique Name) Form: You use this form if you need to order only one name. If the system accepts your name, it reserves it for 20 days, allowing you to complete the incorporation process later.
• SPICe+ Form: You use this more complete form for the entire incorporation process. You can submit up to 6 name alternatives through this form. If your first choice isn’t available, you can move on to your next best alternative.

      4. Submit Your Application

After filling out the essential facts in the shape and attaching any required files, you may post your software on line thru the MCA portal. If you use the RUN form, you reserve your name for 20 days. However, if you use the SPICe+ form, the system automatically reserves your name as part of the incorporation process, so there’s no separate reservation period.

    5. Pay the Fee

There’s a small rate for booking your company name:

• INR 1,000 for both the RUN and SPICe+ programs.

The fee for Name Reservation for a Public Company is non-refundable, even if your name is rejected. If rejected, you will need to apply again and pay the fee once more.

How Long is a Reserved Name Valid?

When you secure Name Reservation for a Public Company, the name is reserved for 20 days. If using the RUN form, you must complete the incorporation within this period. However, with the SPICe+ form, name reservation is integrated into the incorporation process, eliminating a separate validity period. If you cannot complete registration within 20 days, you can request an extension of up to 20 more days.

Can I Change My Company Name After Reservation?

Yes, it’s viable to trade your commercial enterprise company name after it’s been reserved. However, the system becomes greater involved as soon because the business enterprise is blanketed. 

1. Pass a Special Resolution: The enterprise’s board should approve the name exchange.
2. File the Necessary Forms: You’ll need to file office work with the Registrar of Companies (ROC), together with the SPICe+ shape for a call exchange.

Remember, Name Reservation for a Public Company is crucial, as changing the name after incorporation involves legal procedures and additional costs. It’s best to get it right from the start.

Final Thoughts

Name Reservation for a Public Company in India is a vital and foundational step in establishing your business. It is essential to ensure that the chosen name is unique, complies with legal requirements, and aligns with your brand identity. By following a few simple steps, you can successfully secure a name that sets your company up for success. Once you reserve the name, you can move on to the next exciting phase of launching your business!