24 Apr 2020Posted By: Mudit Handa

MCA Extends the Period for Company Name Reservation

Today, the nation is struggling with the greatest adversity ever seen, in the form of Novel Coronavirus pandemic or COVID-19. The Indian government has enforced a complete lockdown till 3rd May all over India so that the risk of the coronavirus infection is controlled before reaching the third stage. No doubt, this lockdown has interrupted the normal course of businesses, because of which the entrepreneurs are unable to fulfill legal compliance. The Indian government has given a number of many relaxations to the corporate sector. The business compliance due-dates have also been extended.

The Ministry of Corporate Affairs (MCA) has now extended the time period for Name Reservation for the newly incorporated companies.

1. How much is the time limit extended for Company Name Reservation?

The company name in case of the new company incorporation is reserved for 20 days.

As per the new MCA guideline, the Names expiring anywhere between 15th March 2020 to 3rd May 2020 would now be extended by 20 days after 3rd May 2020.
Accordingly, Part B of the Form SPICe+ has to be filed within 20 days of the name reservation of the newly incorporated companies.

2. What if the existing name is to be changed?

The new company names in case of change of company name are reserved for 20 days.

Since the time period for name-reservation is extended, new company names shall be reserved for 60 days for change of name of the company.
Accordingly, the Form INC-24 needs to be filed within 60 days of name reservation.

The new MCA ruling says that names expiring anywhere between 15th March 2020 to 3rd May 2020 would be now extended by 20 days beyond 3rd May 2020.

Read in detail the

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