Tips to avoid resubmission in Company / LLP Name Reservation Application

Company and LLP name reservation application is an important step in the registration process of any business entity. However, it is not uncommon to face rejection or resubmission of the application due to errors or discrepancies in the application. This can lead to delays in the registration process and affect business operations. In this article, we will provide tips to avoid resubmission in the company/LLP name reservation application.

Short Glimpse 

Registering a new company is a significant step in the entrepreneurial journey. A vital part of this process is choosing the right name for your business, as it is the first thing that catches the attention of your customers. However, selecting a company name is not as easy as it sounds. One has to go through the company name reservation application process, which can be tedious and time-consuming.

On the other hand, LLP name reservation is an essential step for registering a Limited Liability Partnership (LLP) in India. It’s crucial to choose a unique and appropriate name for your LLP to avoid any legal hassles in the future. The name reservation application is an online process that requires careful consideration and attention to detail. 

Here are some tips to avoid resubmission in Company / LLP Name Reservation Application.

Tips to avoid resubmission in Company / LLP Name Reservation Application 

The following are the Tips for avoiding Resubmission:

• Understanding the Guidelines: Before filling the application form, it is important to read and understand the guidelines provided by the Ministry of Corporate Affairs (MCA). The guidelines contain important information regarding the format and content of the application, which must be followed strictly to avoid resubmission.

• Choosing the Right Name: The first and most important step in the name reservation application is choosing the right name for the company or LLP. The name must be unique, easy to remember and relevant to the business activities. It is important to conduct a thorough research to ensure that the chosen name is not already registered or similar to existing names. This can be done by searching the MCA database and trademark directories.

• Filling the Application Form: The application form must be filled carefully and accurately, with all the required information provided in the correct format. Any errors or omissions in the application form can lead to rejection or resubmission of the application. The applicant must also ensure that the name is written in the correct spelling and capitalization.

• Submitting Supporting Documents: Along with the application form, certain supporting documents must also be submitted, such as identity proof of the applicant, address proof, and business activities. These documents must be submitted in the correct format and as per the guidelines provided by the MCA. Any discrepancies or errors in the documents can lead to resubmission of the application.

• Checking the status of the Application: After submitting the application, it is important to regularly check the status of the application on the MCA website. If there are any errors or discrepancies in the application, the status will show as ‘pending for resubmission’. By checking the status regularly, the applicant can take corrective measures before the application is rejected.

Consequences when your Application Form is marked for Resubmission

You can face the following consequences, if the form is marked for Resubmission:

• Delay in the entire Registration Process: A re-submission results in a re-submission of the application and the form is then placed back into the Ministry’s processing queue, delaying the entire registration process. This could be painful for urgent tasks.
• Rejection Option: Only one resubmission is allowed; state that if the application is not approved, it will be rejected, which means the loss of legal fees. Make sure you don’t just pay for the resubmission note when resubmitting but also go through all the provisions once again, as there may be several flaws in the proposed title that few may have noticed in the first instance. In the latter case, these can be marked as negative notes. For example, the proposed name may have two shortcomings.
• It is identical to the existing company.
• The prefix of the proposed name is a registered trademark.

In such a case, if the resubmission note is raised only for (a) and omitted for (b), The interested party can only comply with the resubmission notice by attaching a no-objection certificate for the existing name. In such a case, the Ministry may reject the resubmitted form based on letter b) above. It is therefore the responsibility of the interested parties to ensure the completeness of the application even at the resubmission stage and not to rely solely on the resubmission note.

• Loss of Client Trust: Clients appreciate the work of professionals if it is fast and completed in the first instance. On the contrary, new clients may lose confidence in professionals in such cases. While repeated applications are inevitable, we can try to be extra sensitive to reduce the resubmission rate, which in turn would reduce the burden on the Central Registration Centre, Ministry of Corporate Affairs.

Requirements for registration of a Company/LLP Name in India

The governing law establishes a set of guidelines for naming a business. Names that do not comply with the rules will not be approved by the Ministry of Corporate Affairs (MCA). A unique company name must contain three elements.

• A unique Term.
• Any kind of suffix.
• Public or private limited,

To avoid confrontation, double-check the availability of the business name. The name must be verified on the Ministry of Corporate Affairs (MCA) page. A trademark registration cannot be filed for a name that already has a trademark owner. Creating a business name search is key to making your brand unique.

Points you should keep in mind to be followed to avoid Resubmission and Approval 

Following are the steps you should follow to avoid resubmission and for obtaining approval in the first instance:

• Provide the Meaning of the Proposed Name: Although it is not a mandatory requirement, it is still highly advisable to provide the meaning of the proposed names. For example: In case the submitters suggest a name based on the name of their children, parents, etc. it is better to mention this fact along with a copy of the identity document of the person whose name is used in the proposed name.
• Public Search of the Registered Trademark in the Relevant Class: Sometimes we skip the Public Search of the Registered Trademark and simply file the application based on the Public Search of the Existing Company /LLP on the MCA Portal. It is equally important to conduct a thorough search to ensure that the prefix or the entire proposed name is not a registered trademark under the Trademark Registry.
• Public Inspection of Existing Companies or Similar Named LLPs: Public inspection of existing companies and LLPs should be done very carefully, keeping in mind all relevant rules of the Companies Act, 2013, and the LLP Act, 2008.
• Selecting The Appropriate Activity Code: The activity code must be entered with more awareness as this is also one of the main reasons for resubmission. The Ministry is very sensitive to the correctness of the activity code. There should be proper synchronization between the provided brief objects and the selected activity code.

Checkpoints we should consider before we submit the Name Reservation Application

 The following are the important checkpoints that one should keep in mind, prior to submitting the Name Reservation Application:

• Use this URL to properly search for names to see whether they are available: 

“https://www.mca.gov.in/mcafoportal/showCheckCompanyName.dohttp://www.mca.gov.in/mcafoportal/showCheckCompanyName.do“

• You should do a proper trademark search using this link: “https://ipindia.gov.in/index.htm“

• If a company or LLP already exists under a name that is similar to the name being considered for use. Then one should refrain from applying for that name since resubmission or rejection may occur. 

• The Name should have the appropriate Prefix and Suffix appended.

Endnote

In conclusion, the name reservation application is an important step in the registration process of any business entity. By following the above tips, the applicant can avoid resubmission of the application and ensure a smooth registration process. It is important to pay attention to the details and follow the guidelines provided by the MCA, to avoid any delays or errors in the application.