In February, 2016 the name approval process was transferred from the State ROC offices to a centralised name approval processing cell. In this post, we provide an IndiaFilings review of the new process for name approval.
Name Approval Old Procedure:
Under the old method for processing of name approvals, any application for name approval for a company made in Form INC-1 was sent to an Officer in the concerned State ROC office. Name approvals were processed manually and the approval times for company name varied from state to state. To streamline this process and set the stage for improving ease of doing business, MCA vide notification dt. 22nd January 2016 announced the establishment of a Central Registration Centre (CRC).
Central Registration Centre (CRC) for Name:
The Central Registration Centre (CRC) was established with a territorial jurisdiction all over India, for processing of all company name approval procedure under the Companies Act, 2013. The Central Registration Centre presently functions under the administrative control of Registrar of Companies, Delhi (ROC Delhi). With the advent of the new central registration centre, the government processing time for company name has reduced drastically to
one or two day. The entire process for company name approval has been re-engineered and moved to an automated system. Over 14000 name applications have already been processed in one month and on average almost 70% of all name approval applications are being cleared with additional time being given to the balance 30% for resubmission.
The MCA has also introduced zero balance in application from Tuesdays to Friday, thereby keeping a mechanism to ensure all applications are cleared instantaneously. With the name approval process becoming more streamlined, the MCA is set to announce centralisation of processing of incorporation applications, thereby making the company registration process a breeze.
Review of New Process:
The new process has drastically changed the incorporation process and made it simpler. Now, companies can be registered in 10-15 days in India, instead of about 25-30 days, it used to take prior to the introduction of the new central registration centre for name approval. The introduction of a central registration centre for incorporation shortly is expected to even shorten the time for company registration, making true the dream of incorporating a company in one day in India.