Name Reservation explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A reserved name is a name nobody else can take — which is exactly why it cannot be held for long.
The name reservation periods
A company can apply for name availability by filing for RUN prior to filing the SPICe Form.
An approved name is valid for a period of (i) 20 days from the date of approval (in case name is being reserved for a new company) or (ii) 60 days from the date of approval (in case of change of name of an existing company).
And on what the name must say: No, it is not mandatory for the name to be indicative of the nature of its business.
A reservation is a monopoly. While it stands, nobody else may register that name or one too like it. Every day it is held is a day the name is unavailable to anyone who might actually use it.
That is tolerable for a short period and not indefinitely. Without expiry, names would be reserved speculatively — a person could sweep up promising names, hold them, and offer them on to whoever wanted one. The register would fill with reservations nobody intended to use.
So the reservation lapses if not used, and the length of the period tracks how long the underlying work honestly takes.
20 days for a new company. Incorporation itself is now a single integrated filing. Once the name is approved, the subscribers, directors, documents and capital are already assembled; twenty days is enough to complete the form and not much more.
60 days for a change of name of an existing company. A rename is a longer road: a board resolution, a general meeting on notice, a special resolution to alter the memorandum and articles, the filings, and the fresh certificate of incorporation. The general meeting alone can consume most of a month once notice periods are counted.
The answer that the name need not be indicative of the nature of its business reflects commercial reality. Companies diversify, and a name tied to one activity becomes misleading the moment the business changes. What the Act controls is the opposite risk — a name that is undesirable, identical or too nearly resembling an existing name, or one that implies a connection with government or requires an approval the company does not have.
Note on currency
The process described here has changed. A name for a new company is now reserved through Part A of SPICe+, and RUN is used for a change of name of an existing company. Form INC-1 has been discontinued. The reservation periods, the extension available on payment of fee, and the resubmission rules are set by the current Companies (Incorporation) Rules; confirm them on the MCA portal before relying on the figures below.
The two kinds of name reservation
| New company | Change of name | |
|---|---|---|
| Validity as stated in the FAQ | 20 days from approval | 60 days from approval |
| Why | Incorporation is a single filing | Special resolution and filings needed |
| Current route | SPICe+ Part A | RUN |
| If unused | Reservation lapses; apply afresh | |
Choosing a name
- Check it is not identical to, or too nearly resembling, an existing company or registered trade mark.
- Check whether it needs a regulator's approval or a no-objection.
- Do not assume it must describe the business — it need not.
- Plan the incorporation or the general meeting so the reservation is used within its period.
Common mistakes
- Applying for name reservation before the subscribers and documents are ready, and letting it lapse.
- Assuming the sixty-day name reservation period applies to a new company.
- Choosing a name that resembles a registered trade mark of another proprietor.
- Using the discontinued Form INC-1 route.