Only a
few months have passed after the beginning of the year 2016 and the year so far
has witnessed tremendous efforts towards boosting of the business scenario in
India. Apart from the launch of plans and initiatives like the Startup India
plan, the government has also been keen towards improving the existing policies
and programs. One such program modified recently is the company name approval
process which has now been transferred from the State offices of Registrar of
Companies to a centralised name approval processing cell. Through this article
we bring to you our take on the recently initiated changes.
Under the previously existing (Old) process for
company name approval, all the applications filed by filling the Form INC-1 for acquiring approval
for a company name were forwarded to an Officer in the office of the Registrar
of Companies of the concerned state. The process was manual and the time to be
consumed in the process was not set as it varied from state to state. The
government and the concerned authority felt a need to modify the norms to simplify
this process and make it more efficient and less time consuming. With this aim the
Ministry of Corporate Affairs under the MCA notification dated 22nd
January 2016, declared the establishment of a Central Registration Centre
(CRC) to serve the purpose.
Unlike
the existing system which was a state level affair, the Central
Registration Centre (CRC) was given a countrywide territorial jurisdiction
for processing of all the company name approval applications. This registration
centre is governed by the Companies Act, 2013 and at the moment functions under
the Registrar of Companies, Delhi (ROC Delhi).
Proving
true to its purpose of existence, the new central registration centre has
reduced the government processing time for approval of the company name considerably.
Now it is possible to get your company name approved in merely 1-2 days. For
setting up this centre, the complete procedure which previously existed has
been re-created and modified to suit the requirements. The manual processing
system has now been moved to a fully automated system.
In order
to ensure immediate and instant clearance of applications, the Ministry has
also introduced a system of zero
balance in application from Tuesdays to Friday.
After
achieving success in making the name approval process more efficient, the ministry
is ready to set the dice rolling for modifying
the company registration process by the centralisation of processing of
incorporation applications.
It
cannot be doubted that the centralisation of name approval has contributed
significantly towards development of the incorporation process by making it simpler
and quicker at the same time.
Efilingportal.in brings to you its take on the
newly introduced modification in the company name approval process.
This article is about Company
Registration and Business Registration for more information please visit our
website: https://www.efilingportal.in
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