Ministry of Corporate Affairs is planning to somewhat ease the serious issues in company incorporation in India by allowing two names in their new RUN (Reserve Unique Name) system on their website and also allow one resubmission.
Even then the serious problems remain that MCA is quick to reject the names proposed on totally vague and illogical grounds. Common rejection reasons are that the name is closely resembling to some existing name already registered. But when you compare the name proposed with the name it is supposedly resembling to, there is not even a remote resemblance, forget about close resemblance. Secondly, when the applicants do a name check on the MCA portal, they do not get these names which are supposed to be closely resembling to the names proposed. So MCA is using a different algorithm when they are checking from their side to what the user is able to generate when he is checking from his side. This is not helping matters. Thirdly the user is clicking the Auto Check option on the RUN system, still it is not throwing up any identical names. So something is seriously wrong with the MCA system. It is not working to the satisfaction of the user.
Then there is another issue, that of TM comparison. When the user does a check on the TM site, he does so normally only for the class of business in which the company is going to be involved in, not all the classes of businesses. Now MCA is rejecting names on the ground that the TM is registered in another class different from what the proposed company is going to do business in. Such general and wide ranging rejections is not helping matters at all. It is not at all Ease of Doing Business as the government is claiming to be. Why is the MCA getting involved in TM matters. Let the companies who are affected by similar trade marks take action under the relevant Trade Marks Act. Secondly it is only an incorporation stage, not the TM stage, there is no logo or trade mark involved at the incorporation stage. This kind of overarching abuse of power is not helping India generate businesses and thereby employment and asset creation of which there is a dire need.
Even then the serious problems remain that MCA is quick to reject the names proposed on totally vague and illogical grounds. Common rejection reasons are that the name is closely resembling to some existing name already registered. But when you compare the name proposed with the name it is supposedly resembling to, there is not even a remote resemblance, forget about close resemblance. Secondly, when the applicants do a name check on the MCA portal, they do not get these names which are supposed to be closely resembling to the names proposed. So MCA is using a different algorithm when they are checking from their side to what the user is able to generate when he is checking from his side. This is not helping matters. Thirdly the user is clicking the Auto Check option on the RUN system, still it is not throwing up any identical names. So something is seriously wrong with the MCA system. It is not working to the satisfaction of the user.
Then there is another issue, that of TM comparison. When the user does a check on the TM site, he does so normally only for the class of business in which the company is going to be involved in, not all the classes of businesses. Now MCA is rejecting names on the ground that the TM is registered in another class different from what the proposed company is going to do business in. Such general and wide ranging rejections is not helping matters at all. It is not at all Ease of Doing Business as the government is claiming to be. Why is the MCA getting involved in TM matters. Let the companies who are affected by similar trade marks take action under the relevant Trade Marks Act. Secondly it is only an incorporation stage, not the TM stage, there is no logo or trade mark involved at the incorporation stage. This kind of overarching abuse of power is not helping India generate businesses and thereby employment and asset creation of which there is a dire need.
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