Section 8 Company

How to Approach for Section 8 Company Name Reservation?

calendar10 Jun, 2021
timeReading Time: 4 Minutes
How to Approach for Section 8 Company Name Reservation

Section 8 company operates under the Indian Companies Act, 2013. The same act has laid down the regulatory guidelines for section 8 firms. It is managed by the MCA i.e. Ministry of Corporate Affairs, GOI, via offices of ROC (Registrar of Companies) resided in every Indian state. The Company Incorporation rules and process differ depending on the type of the company seeking incorporation certificate. In this write-up, we will reveal the process of obtaining section 8 company names in brief.

An Overview on Section 8 Company Name

The applicant seeking section 8 company name needs to visit MCA’s portal and submit a web-based form under the service, namely Reserve Unique Name’, aka RUN. After visiting the home page, the applicant is required to head over to the top menu, presented in the horizontal alignment, and then select “Services” to find the RUN services.

While submitting proposed names, make sure to exclude the words like Private Limited or Limited at the end of its name. Remember, the section 8 company name must end with terms prescribed for this purpose, like a forum, chambers, foundation, council, association, electoral trust, federation, etc. The MCA-powered RUN services supporter submission of the name application in case of rejection.

Read our article:What are the Relaxations given to Section 8 Companies under Company Law?

What is the role ofRUN services on MCA’s portal?

The Ministry of Corporate Affairs[1] i.e. MCA has mitigated typical issues with the Company Name Approval Process by introducing Reserve Unique Name (RUN) services. The said services seek no specialized skill for application filing. A person with an average computing skill can easily address such a process. RUN services are simple, intuitive, and, most importantly, user-friendly.  Remember, the same service can be used for altering the prevailing firm’s name.

Who can use RUN services on MCA’s Portal?

The registered user is eligible to leverage RUN services on the MCA’s portal. Creating an account on the MCA portal is the first step for the new applicant to the name reservation process. After creating the log-in detail or account, the applicant can select Reserve Unique Name (RUN) under the MCA Services without any issues. An individual aiming to register section 8 company name can leverage RUN services for company name reservation.

Requirements to be considered for name modification or reservation

When an applicant files a web-based form to reserve or change the firm’s name, he/she must ensure that the proposed name stays in line with the Company name availability guidelines. A Trademark search is also imperative in this context as it will help to determine whether the proposed name complies with the provisions of Section 4(2) of the Companies Act 2013 or not. The proposed name shall confront rejection in case of non-conformity with the given guidelines.

Validity of a Name Approval

The company whose name has received approval from RUN services shall remain valid for the period of:

  • 20 days from the approval’s date (in case of new company name reservation)
  • 60 days from the approval’s date (in case of name modification for an existing firm).

Submission of Objects for Name Reservation

The applicant must submit the object of the proposed firm while filing a name reservation application to support the proposed name.At present, RUN services support the submission of one name under the RUN application. The said services still lack the facility of multiple name submissions. It is an important point for someone who is planning for a section 8 company name reservation.

Key Requisites to Reserve Firm Name

Albeit there is no requirement of furnishing any document for name reservation, it is advisable to present NOC from a prevailing firm or other agencies to support the name application. All submissions should reach the authority in a single document, with a max file size of 6 MB.

Fee structure for name reservation under RUN services

Rs 1000 is the amount that MCA charges for name reservation or modification under RUN services. Post application submission and said fees amount, the portal will generate the Service Request Number (SRN) which acts as an acknowledgment slip for the applicant. It is important to keep in mind that the said fees is non-refundable. That means there is no way the applicant can claim the submitted amount in case of application rejection.

Re-submission of RUN Application

At present, the Ministry of Corporate Affair offers no provision for resubmission of application in case of rejection.  That means applicantshave to file a new application for name reservation if they face revocation from authority. Needless the mention the application fees of Rs 1000 will go along with the new application.

Procession of Names

The Central Registration Centre (CRC) will be responsible for examining the name application. The scrutiny will be rigorous and extensive so that even the minor errors could not pass on. Post scrutiny procedure, CRC may approves or rejects the application, and shared the same with the concerned applicant via email.


MCA is quite spot on when it comes to error detection in the application. Therefore, the applicant needs to stay in line with aforesaid conditions and the Companies (Incorporation) Rules 2014. And not to forget that Name and Trademark Search adheres to utmost importance in this regard. Keep in mind that CRC even takes phonetic similarities into account while performing a name check. This inherently strengthens the chances of application rejection. Though the section 8 company name reservation seems a simple process, the real challenge lies in identifying the unique name.  Hopefully, you will find this article conducive and relevant. In case of doubt, connect with CorpBiz’s professional for an expeditious solution.

Read our article:What are Section 8 Companies? Know its provisions and Incorporation Procedures

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