Business Registration
Company Incorporation becomes easy as Government launches CRC

Check how the Companies Incorporation Amendment Rules 2016 has paced up the name approval process for companies.

Taking another step towards its goal of turning the business process in India into an easy and inspired ride, the government on 22nd January of this year launched the Companies Incorporation Amendment Rules 2016. It came into effect from 26th of January, 2016. The motive behind the launch was making the name approval process for companies rapid and also for simplifying the process of company registration. This article brings to you the developments brought lately in the Company Name Approval process.

Before the launch of Companies Incorporation Amendment Rules 2016, the approval process was comparatively complex. Prior to the launch, the applications for name approval had to be submitted to the concerned ROC of the area based on the registered office address of the Company. The State level ROC officers administered the process of processing of the applications and accorded approval.

However with the introduction of the new process of name approval, the things have turned simpler and faster. A Centralised processing centre has been established for the process. Now all name approval applications are sent to the centralised processing centre for name approval. The process of processing of name approval applications all over the country is now administered by the central processing centre. The centre provides name approval based on the name availability. With the introduction of the new process, the new process of name approval has become faster, simple and easy.

Since the previous naming process adopted more rigid Company Naming guidelines and regulations than the present one, the process was comparatively more firm and inflexible. The new rules have brought relaxation in major restrictions in the company naming guidelines. With the relaxation, a lot more options have opened up for the companies to choose form. The key changes that have been brought by the Amendment Rules are enlisted below:

• It is no more mandatory for the Companies to have a name in line with correspondence to the objects of the company.

• The Companies can now choose a vague or abbreviated name unlike before, names like A2Z limited are now acceptable.

• Previously the names that misled the customers about the objects and services of the firm where not allowed, now this ban on misleading names has been lifted.

• Now the companies can change the activities of their firm without changing the approved name that the firm is already using.

• Using names no more requires a NOC.

• Responsibility of the process now in the hands of Central Registration Centre.

• Number of Resubmissions for incorporation increased from two to three.

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