The Ministry of Corporate Affairs (MCA) notified the new provision namely Rule 9A for the extension of reservation of name in certain cases.
The Government notified the Companies (Incorporation) Third Amendment Rules, 2020 which seeks to amend the Companies ( Incorporation) Rules, 2014.
In the Companies (Incorporation) Rules, 2014 , Rule 9A shall be inserted with effect from 26th January, 2021.
As per the new rule registrar shall extend the period of a name reserved under Rule 9 by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) up to 60 days on Payment of Fees.
Firstly, the period shall be extended upto forty days from the date of approval under rule 9, on payment of fees of rupees of one thousand rupees made before the expiry of twenty days from the date of approval under rule 9.
Secondly, the period shall be extended upto sixty days from the date of approval under rule 9 on payment of fees of rupees two thousand made before the expiry of forty days.
Thirdly, the period shall be extended upto sixty days from the date of approval under rule 9 on payment of fees of rupees three thousand made before the expiry of twenty days from the date of approval under rule 9
However, the Registrar is empowered to cancel the reserved name in accordance with sub- section (5) of section 4 of the Act.
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