MCA declared Companies (Incorporation) Third Amendment Rules, 2020

On 24th December 2020, the Ministry of Corporate Affairs (MCA) issued the Companies (Incorporation) Third Amendment Rules, 2020.

With effect from 26th January 2021, Rule 9A i.e. Extension of Reservation of Name has been introduced in certain cases.

The previous provisions under the Companies Act, 2013 allowed the name reservation for the company’s incorporation for a maximum number of 20 days. If, within the time period of 20 days, the company fails to be incorporated then the reserved name shall be deemed expired.

However, this amendment allows the promoter to avail an extension against the reserved name by filling the Spice+ form and paying a specific amount. The specified payment structure on the basis of number of desired days of extension is as follows:

1. 40 Days from Date of Approval of Name: Rs. 1,000; to be paid within 20 days from the date of approval.

2. 60 Days from Date of Approval of Name: Rs. 2,000; to be paid within 40 days from the date of approval.

3. 60 Days from Date of Approval of Name: Rs. 3,000 to be paid within 20 days from the date of approval.