Becoming an entrepreneur has many processes to follow. Mere knowledge on the subject matter and expertise in the same does not suffice the statutory and legal requirements to start a new company. Different aspects are reviewed when one wants to open a new Company. Let us have a look at the review of new Company approval process which has some changes as compared to old approval process.
In February, 2016 the name approval process was transferred from the State ROC offices to a centralized name approval processing cell.
Company name approval process till February 2016
- The form to be filled for Company name approval process was Form INC-1
- Anyone who wants a company name to be approved fill the above stated form and submitit to the ROC offices of the concerned states
- Such approvals did not happen in a computerized manner but were manually processed
- The processing time of these requests and issue of final approval differed from state to state
To put a full stop to such unruly way of Company Name Approval Processes and delays in the same, the concerned Ministry announced that CRC – Central Registration Centre would be responsible for all Company Name Approvals vide a circular dated 22nd January 2016
All about CRC – Central Registration Centre
- The territorial jurisdiction of Central Registration Centre is the complete Indian terrain
- Central Registration Centre will process Company Name Approval Requisition adhering to the Companies Act of India
- Central Registration Centre comes under the Administrative Control of Registrar of Companies located in New Delhi
- The effectiveness of the new system and efficiency of Central Registration Centre is witnessed openly in the speed with which company names have been processes within this short period of time. Approvals are being released within 2 to 3 days from the date of submission of the request form
- The system has been computerized and no manual work is involved in the new method of getting approvals for Company names
- Approximately 70% of 14000 plus applications received for Company name approval process have been approved in the past one month. The balance 30% have been intimated for resubmission with changes
- The zero-balance program announced by the Ministry of Commerce has insisted that Central Registration Centre clears off all applications in a quick manner particularly between Tuesday and Fridays every week.
- The Ministry has plans to centralize this process making it more easy for people to start more and more profitable commercial ventures across the country.
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 is expected to even shorten the time for company registration, making true the dream of incorporating a company in one day in India.
The plans of Ministry of Commerce for the future is sure to make Company Name Approval process a one day affair soon.
Author: This blog is written by Ms. Arushi Sethi, a passionate blogger & intern at Aapka Consultant.
Visit: Aapka Consultant to get Online Services of CA CS & Lawyers.