Today we are discuss All about RUN Form which is introduced by the Ministry of Corporate Affairs. Its promotes to starting a new company in 2018 as simplified way. People who aspire to be a business owner of any kind of business in India, were in a state of happiness due to an important announcement made by the ministry of corporate affairs in India which is a ministry for regulating the corporate sector in accordance with law.It is mainly responsible for regulation of companies in industrial and service sector. The announcement was regarding the Ease of Doing Business as the ministry announced that It will make the process of incorporating and register the business firms in India simple and fast process. The Ministry Introduced RUN and SPice E- Form initiative to fulfill the above motive.
RUN (Reserve Unique Name) Web-Form
A company name can be an easy way even before obtaining a digital signature by the newly introduced RUN (Reserve Unique Name) Web-Form In India. RUN Is a web service for reserving a name for a new company or for a change of name for an existing company.Before the introduction of RUN web-form, application for reservation of name was to be made in Form INC-1 with up to 6 choices of the name. Further, to apply for reservation of company name, a minimum of 2 Director Identification Number and 1 Digital Signature were required
The first step to avail this facility is to User create a user account with MCA to apply for a name using RUN form. After Account is created you need to log into that account and After logging into the MCA account, the user can choose the type of company they want to register and provide one name choice and check on the company online database and LLP names at MCA portal. Company or LLP cannot be registered with an identical or similar name to that of an existing company or existing trademark.Fee for application is Rs.1000 for each submission.Upon successful submission of the proposed name and the payment, a challan will be generated depicting the details of the fees paid by the user.
Option to use RUN (Reserve Unique Name) Form
Incorporation of a company can be completed with prior name approval via web form RUN or using SPICe form. If the name is acceptable to CRC via a RUN form, they will provide a name approval letter via email to the registered user. Once the name is approved, registration of company through SPICe form can be filed.
Even, promoters who are sure that their company name is unique and wish to do incorporation of a company can directly file for incorporation using SPICe form.
Zero Fee for Incorporation of Company
Zero fees have been announced for the SPICe form, EMOA and EAOA effected from 26th January 2018. However, stamp duty would still be applicable for incorporation as before.
Director Identification Number for Incorporation
From 2018, the process for generating DIN has been distributed into the following categories:
DIN Application for incorporating New Company
Any person who wants incorporation of a Company can apply for DIN only through the SPICe form subject to maximum 3 directors at a glance. Details of Directors (whom DIN is to be allotted on incorporation) must be filled into the SPICe form along with their PAN or Passport details. In case, if a person having DIN is incorporating a new company, SPICe form must still be used and DIN can be entered where ever applicable.
DIN Application for appointment in existing Company
Now DIR-3 form can be used by existing companies for adding a Director effected from 26th January 2018. The new DIR-3 form has the provision of requesting the CIN of the Company to which the Director would be added and a declaration that the DIN is being obtained for adding the person as a Director to the mentioned company.
Henceforth, Now its little bit more easy to incorporate a company. RUN services have some pros and cons like no DIN is required at the time of name approval but at the same time, we can apply only for one name at one time.
So now more and more entrepreneurs in india always go with the Company Registration instead of the LLP Registration or Propreiorship firm Registration.