How Much Time Does It Take for Company Name Approval in India ?

The Process of Company Name Approval in India

The process of obtaining company name approval in India typically follows these steps:

1. Choosing a Name: The first step is to decide on a name for your company. The name should be unique, not too similar to any existing company name, and it should comply with the MCA’s naming guidelines.

2. Name Availability Check: Before submitting your company name, it’s essential to perform a name availability check on the MCA website. This helps to ensure that the name you have chosen is available for registration and does not conflict with any existing names.

3. Filing for Name Approval: Once you’ve chosen a name, you can file the application for name approval with the MCA using the RUN (Reserve Unique Name) service. This service allows you to submit two proposed names for approval, and the MCA will review them to check for availability.

4. Review by MCA: After submitting the names, the MCA examines the application to verify that the proposed names adhere to the regulatory framework. This includes checking for trademarks, similarities with existing company names, and compliance with naming conventions.

Time Taken for Name Approval

The time it takes for your company name to be approved can vary depending on various factors. Here is a general timeline for the process:

• Standard Timeline: In most cases, the MCA takes 1-3 business days to process the name approval request. If there are no issues or objections, the name is usually approved within this time frame.

• Factors That Can Delay the Process:

  • Name Rejection: If the name is already taken or violates MCA’s naming guidelines (such as being too similar to an existing company or trademark), your application will be rejected. This may result in delays as you will need to submit new proposed names.
  • Complex Names: If the name involves special characters or terms that require more detailed scrutiny, approval may take longer.
  • Backlog in MCA Processing: During peak periods or times when there is a backlog in the MCA, the approval process can take longer than usual.
  • Objections and Clarifications: If the MCA has concerns or requires further clarifications, they may ask for additional documentation, which can further extend the time needed for approval.

• Rejection and Resubmission: If your name is rejected, you will have to resubmit the name approval application with a different name. This resubmission can add several more days to the process, depending on how quickly you come up with an alternative name and submit the application.

After Name Approval: Next Steps

Once your company name is approved, you can proceed with the rest of the company registration process. The name approval is typically valid for 20 days from the date of approval, within which you must complete the process of incorporation.

Conclusion

On average, company name approval in India takes 1-3 business days if there are no issues with the application. However, the actual time may vary based on several factors, including the complexity of the name, the need for clarifications, or a backlog at the MCA. Therefore, it’s essential to plan ahead and ensure that the proposed name adheres to all MCA guidelines to avoid any delays.