MCA EXTENDS TIME PERIOD OF RESERVATION OF NAME

MCA EXTENDS TIME PERIOD OF RESERVATION OF NAME

The Ministry of corporate affairs has issued a guideline regarding the name reservation procedure and for form re-submission.

COVID-19 has forced everyone to be at home. Almost every sector has come to a standstill. Due to this pandemic, commercial activities are at a halt and many people are facing huge problems in filing of the relevant forms and their submission in the prescribed time period. Considering this, the Ministry of Corporate Affairs has provided many relaxations related to the last date period for submission of various forms.
 

As far as filing of the documents is concerned for the various businesses. Name reservation being one of the important steps of Company registration. The Ministry of corporate affairs has provided relaxation in this service by issuance of a guideline dated April 22, 2020.
 

The Ministry of corporate affairs has issued a guideline regarding the name reservation procedure and its resubmission. The details of the same is as follows:
 

GUIDELINES IN CASE OF COMPANIES

1. If any person has duly filled the part A of SPICe+ form and  the name has been approved by the department (Central Registration Centre, Manesar or the CRC) then its validity will be for the date till the lockdown ends. As per the procedure the name gets reserved for 20 days. Now considering this lock down scenario, if those 20 days end between 15 March 2020- 3 May 2020 period then the name will not get lapsed even if the part B of SPICe+ form is not filled.

Under the new guidelines, extra 20 days beyond May 3rd, 2020 will be granted for the filing of part B of SPICe+ form i.e., the person will be getting an extension of 20 days till 23 May 2020 for the filing of the part B of SPICe+ form to complete the incorporation process.

2. An extension has also been given for the RUN form which details as if any person has already filed the RUN (Reserve Unique Name) for name change and pursuant to which the name is approved and reserved for 60 days. Similarly, if those 60 days end between 15th March, 2020 to 3rd May, 2020 And the person is not able to file the e-form INC 24 then the name will not be lapsed due to non-filing of the e-form.

An extension of 20 days will be granted under the new guidelines which meant that a person can file INC 24 for the name change till 23rd May 2020.

3. If SRN’s are sent for resubmission and the date of this resubmission of SRN falls between 15th March, 2020-3rd May, 2020 then an extension of 15 days will be granted. Which means that the new last date for resubmission would be 18 May, 2020.

However, for those SRNs which are marked under Not to be taken on Record (NTBR). Extension would be provided depending on the case to case basis.
 

GUIDELINES IN CASE OF LLP

1. If a person has filed the RUN-LLP and after the completion of this procedure a name has been approved and reserved for 90 days. Then if the last day i.e. 90th day of this period falls between 15th March, 2020 to 3rd May, 2020 and the person has not filled the FiLLiP then under the new guidelines, the name will not be lapsed even after non-filing of FiLLiP. An extension of 20 days after 3rd May, 2020 will be granted i.e. a person can file FiLLiP till 23rd May, 2020 .

2. Persuant to the filing of RUN-LLP for name change by a person,if name gets approved the same gets reserved for 90 days.The person has to file form 5 in the 90 days period.Now suppose that the 90th day of this period falls between 15th March, 2020 to 3rd May, 2020 then even after the non filing of form 5 the name will not be lapsed. The extension of 20 days is provided under new guidelines which means that the new last date for the filing of form 5 will be 23rd May, 2020 .

3. If SRN’s are sent for resubmission and the date of this resubmission of SRN falls between 15th March, 2020-3rd May, 2020 then an extension of 15 days will be granted. Which means that the new last date for resubmission would be 18 May, 2020.. However, for those SRNs which are marked under Not to be taken on Record (NTBR);extension would be provided depending on the case basis.
 

Conclusion:

We can conclude that in the midst of COVID-19 , these relaxations by the Ministry of Corporate Affairs is a great initiate that will benefit many companies and llp’s or respective directors and partners who were facing several hurdles for the arrangement of the required documents and their subsequent filing.
 

Edited by Minu Mishra