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Name reservation shall be valid for 20 days instead of 60 days at the time of incorporation
CompaniesAct.in
Jan 24, 2018

MCA vide Notification dated 23rd January, 2018 has enforced the provision of section 4 of the Companies (Amendment) Act, 2017 which shall come into force from 26th January, 2018.

Companies (Amendment) Act, 2017 Analysis of Section 4(5)(i) of the Companies Act, 2013

Section 4:

In section 4 of the Companies Act, 2013, in sub-section (5), for clause (i), the following shall be substituted, namely:—

“(i) Upon receipt of an application under sub-section (4), the Registrar may, on the basis of information and documents furnished along with the application, reserve the name for a period of twenty days from the date of approval or such other period as may be prescribed:

Provided that in case of an application for reservation of name or for change of its name by an existing company, the Registrar may reserve the name for a period of sixty days from the date of approval."

In case of incorporation, name reserved by the Registrar, Central Registration Center (CRC) shall be valid for 20 days from date of the approval instead of 60 days from the date of application, as previously provided.

However, in case of change in name by an existing company, name reserved by CRC shall be valid for 60 days from the date of approval.


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