When starting a new business, one of the first crucial steps is choosing a name for your company. However, before you can go for business name registration, you may need to reserve it. Reserving a company name gives you the exclusive right to use that name for a certain period of time while you complete the necessary paperwork to register your business. In this article, we will walk you through the steps to reserve a company name for your new business.
Step 1: Check if Your Desired Company Name is Available
Before you can reserve a company name, you need to ensure that it is not already in use. You can search for existing business names using your state’s business registration website or the U.S. Patent and Trademark Office’s (USPTO) trademark database. If your desired company name is already taken, you will need to choose a different name or consider using a variation of the name.
Step 2: Determine How Long You Need to Reserve the Name
Different states have different rules regarding the duration of a company name reservation. You are typically allowed 20 days for name reservation.
Step 3: File the Necessary Paperwork
To reserve a company name, you will need to file paperwork with your state’s business registration office. The specific forms and fees required vary by state, so check with your state’s office to find out what you need to file. Typically, you will need to complete an application and pay a fee to reserve the name.
Step 4: Keep Track of Your Reservation Period
Once you have reserved your company name, make sure you keep track of the reservation period. You do not want to let the reservation expire and lose the exclusive right to use the name. If you need more time to complete the necessary paperwork to register your business, you may be able to extend the reservation period by filing additional paperwork and paying an additional fee.
How to Reserve a Company Name in India
In India, the Ministry of Corporate Affairs (MCA) provides two primary methods for reserving a company name: RUN (Reserve Unique Name) and SPICe+ (Simplified Proforma for Incorporating Company electronically Plus). Understanding the differences and benefits of each method can help you choose the best option for your business, ensuring a seamless and compliant name reservation process.
Step 1: Search for Name Availability
Once you have decided on a name, you must check its availability on the Ministry of Corporate Affairs portal at MCA Name Search and the trademark portal at Trademark Public Search. IndiaFilings provides a convenient MCA name search tool and trademark public search service, which allows users to easily check the availability of a proposed company name on the Ministry of Corporate Affairs portal and verify trademark status on the official trademark portal.
Step 2: Select the Form – RUN/SPICe+
For existing companies or name changes, you can use the RUN web service. For new company incorporations, you can use SPICe+ Part A. The RUN web service does not require a digital signature, while SPICe+ Part A is an integrated form that consolidates multiple services to streamline the incorporation process.
Step 3: Fill Out the Name Reservation Form
For the RUN web service, you will need to enter the proposed company name. Then provide necessary details such as the type of company and the relevant industry. For SPICe+ Part A, you will need to fill out the form. Fill in details such as the proposed company name, type of company, proposed activities, and other related information.
Step 4: Submit the Form
Once you have filled out the form, you can submit it to reserve the company name and initiate the registration process. The MCA provides different modes to reserve company names, including the RUN web service and SPICe+ Part A.
Precautionary Measures
When formulating a company name, you need to ensure that it meets the guidelines set by the Companies Act, 2013. The name must have three parts: a unique or coined word, any suffix, and private limited or public limited or (OPC) private limited. Additionally, the name must not resemble any other existing company or LLP’s name. Also it must not infringe upon the trademark and domain name rights of any party.
Conclusion
Reserving a company name is a crucial step in the business registration process. By knowing how to reserve a name for a new company and following its steps, you can ensure a seamless and compliant name reservation process. Remember to check the availability of the name, determine the duration of the reservation, file the necessary paperwork, and keep track of the reservation period to avoid any potential issues.