New system for reserving name

MCA has vide its notification dated 20th January, 2018 introduced a new system of name reservation for new companies as well as existing companies. It is called RUN (Reserve Unique Name) and it is available on the webspace as against a form which was hitherto the norm with MCA. So form INC-1 has been done away with.

RUN does not ask for too many details - just entity type, CIN, proposed name & comments. One needs to feed data into it and see how it works before commenting on the efficacy of the system.

Hitherto the form INC-1 used to run into a wall called the Central Reservation Centre or CRC. The CRC was known mostly for rejecting names rather than approving them and they had a funny, vague and ambiguous internal guidelines which they followed ridiculously. That is if the proposed name matched an existing entity's name by 50% it was automatically rejected. It is so silly and in absence of no further details as to how that system worked, it was a pain in the wrong place.

RUN does not require any digital signature to be uploaded, so hope it is not subject to misuse. People could just apply for several unique names and sit on it thereby preventing those names from being available for genuine entrepreneurs. I hope this is not the case. As i have said elsewhere unless and until we go through the new system, we will be unable to comment on its efficacy.

Also not aware if the RUN has some fees to be paid, which i am sure it has, then people could end up paying multiple times for different names because there is no resubmission process in the RUN system.

I hope RUN has some kind of appeal system in place otherwise what will happen is again some stupid internal guidelines will be followed much to the heartburn of genuine entrepreneurs.


In fact the CRC was so idiotic that they used to reject change name applications of existing companies without giving it any thought whatsoever.

Apparently the form INC-32(SPICe) has also been amended alongwith the digital MOA and AOA in forms INC-33 and INC-34 respectively. One has to look into these forms to find out what changes they have made.

Where the no. of subscribers to a new company are more than 7 or where the documents are being executed outside India, then the digital MOA & AOA is not to be used. Instead the duly signed MOA & AOA needs to be attached to the form INC-32.

DIN for a Director in an existing company

MCA has vide its notification dated 26th January, 2018 eased the requirement of a DIN (Director Identification Number) for appointment of a Director in an existing company. They have amended the Companies (Appointment & Qualification of Directors) Rules, 2014 to that extent.

Rule 9(1) has been amended as follows:

" (1) Every applicant, who intends to be appointed as director of an existing company shall make an application electronically in Form DIR-3, to the central Government for allotment of a Director Identification Number (DIN) along with such fees as provided under the companies (Registration offices and Fees) Rules, 2014.

Provided that in case of proposed directors not having approved DIN, the particulars of maximum three directors shall be mentioned in Form No.INC-32 (SPICe) and DIN may be allotted to maximum three proposed directors through Form INC-32 (SPICe)";

What this means is that if a person is proposed to be appointed as a Director of an existing company (as against a company to be incorporated), then he need not mandatorily have a DIN, which was a pre-existing condition. In that case, the company has to file form INC-32 (SPICe) and this form INC-32 (SPICe) can take maximum 3 DIN applications. The additional document to be attached to the form INC-32 (SPICe) is the board resolution approving the appointment of these new directors.

Now this form INC-32(SPICe) is an incorporation form, so why confuse it with the DIN forms, it is not clear at all. Why not enable form DIR-3 itself to take upto 3 applications and allow it to be uploaded that way with the board resolution attached. Perhaps they could have formed a DIR-3 (company) form as against a DIR-3 (individual) form. Confusion worse confounded.

Then again we come to Rule 9(3) which is pertaining to form DIR-3. The main sub rule 9(3)(a) has been left as it is i.e.

"The applicant shall download Form DIR-3 from the portal, fill in the required particulars sought ¹[therein, verify and sign the form] and after attaching copies of the following documents, scan and file the entire set of documents electronically-"

The heading of Rule 9 has been changed to 

"Application for allotment of Director rdentificataon Number before appointment in an existing company,,;"

Earlier it was 

"Application for Allotment of Director Identification Number"

Now under this revised heading of Rule 9, there are two forms prescribed i.e. INC-32 (SPICe) and form DIR-3 without clearly specifying when both of these forms are to be used. 

It is not clear now how many forms are to be used. DIR-3 by the Director, INC 32(SPICe) by the company and thereafter another form DIR-12 for appointment of Directors. 

MCA is clearly losing its way, it is a badly drafted amendment with the left hand not knowing what the right hand is doing. 

Spies in Slovenia

Today's interesting news comes from Slovenia, where it is reported that the spies have gone on strike. I wonder how spies take revenge for low pay - do they reveal the secrets which they have accumulated over the years, put it out on public domain. Or perhaps spy on their masters, which I suspect they may be doing it anyways.  

The Island

Victoria Hislop has written a gut wrenching story about a family history that is full of tragedy, from having to deal with the incurable disease of leprosy, being confined to a separate leper's island, the scourge of the disease, its impact on family relationships, families torn asunder, distraught of the husband at having to visit his wife in a leper's island every week, in order to deliver supplies, yet not being able to embrace or touch each other, one family having two people suffering from that disease, one sister not being on good terms with the other one, one sister's engagement broken off, yet also of love, abundant love of the family to deal with the crises, the positive feelings of improving their own lives, friendships that last beyond anything, cures being found, redemption, catharsis. Goodreads 4/5

The Count of Monte Cristo

Finished reading a fascinating book by Alexandre Dumas "The Count of Monte Cristo" a book of love, deception, revenge and murder - tragic characters in the book - an absolute page turner - it is a timeless classic as relevant today as it was when it was written in 1844. It focuses on a man who is wrongfully imprisoned, escapes from jail, acquires a fortune, and then sets about getting revenge against those responsible for his wrongful confinement. Goodreads 5/5

Murder in Mesopotamia

Agatha Christie is on familiar ground when she covers murders in rural England which is her speciality - unfortunately "Murder in Mesopotamia" is a story based in Iraq on an archeological site - a murder takes place and Hercule Poirot is travelling some place nearby - so he comes in and solves the crime in his inimitable style - Christie maintains the suspense till the end in every book of hers - same is true of this one as well. Goodreads 4/5

Echoes in the Darkness

Just finished reading a true crime story by Joseph Wambaugh - "Echoes in the Darkness". This book is regarding the murder mystery of Susan Reinert a divorced school teacher and her two children Karen and Michael who were never found since that fateful day in June 1979. She was having a secret affair with another school teacher William Bradfield who was famous for his numerous flings with women. He was having another secret affair with another teacher Sue Myers and this after having two failed marriages in the past. Whilst he was juggling with the two teachers he started and successfully carried two more affairs both with students of the Upper Merion High School in Main Line, Philadelphia where they were all enrolled. One of the student was a minor when he started his affair, but all his women swore by his affections. The principal of the school was Jay Smith an ex-army officer and quite a character in himself with revelations of sexual escapades and fantasies, shoplifting and his own daughter Stephanie and son-in-law Eddie Hunsberger were never found – it was alleged that Smith had murdered his daughter and son-in-law but they just vanished from the face of earth and were never found to this day. The prosecution had to rely on circumstantial evidence in this case. Much of the book in the first half is devoted to the peccadilloes of William Bradfield and Jay Smith in conjuring up their images as crazy, demented individuals. Goodreads 5/5