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Can ROC withdraw the approved name?


CA Pulkit Sharma

2013-11-28

I filed the form 1A with ROC for name approval. And ROC approved the name, later i got a notice from ROC stating that the name resembles to already registered company.

Can ROC withdraw the name already approved?

Also in notice they have asked to write a letter stating why name should not be withdrawn?

Does anyone have the format, and to whom we should post the letter to?

CA Sundeep Kamath

2013-12-01

On Preliminary review of the facts  you have presented, let me explain the two fold process for name approval before answering the the validity of action

 

Two types of approval that goes for application for availibility of name would be as under

 

A. The Application made by the applicant and duly signed by himself detailing 6 likely name and which will take time of approx 6-8 days for approval from ROC.

B. The application made by the applicant being signed by practicing Chartered Accountant  / Company secretary, which based on certification is taken on straight through process and and name approval is accorded through straight in process.

 

In the Former, though the approval process requires time, the same is less risky,as the process of selection of name, DIN validity , the legality of entity is formed are all transferred to the applicant than the professional.

In the later the Professional vets the name and its validity being certified after thorrow search at MCA portal and in line with general circular no. 17/90/2011-CL-V dated 8th July 2011.

 

Further if the application has been approved by the professional and later found the name to be in similar with existing approved names, the professional would be liable for penal provisions under the companies act, 1956 as well as the code for professional ethics under the respective institute rules / laws framed thereunder.

If any time before incorporation, if the ROC sumoto finds the name resembles with the existing company name or for any other reasons, the ROC may with specific order in writing with specific reasons with an opporunity of being heard, however such decision should be communicated before company is registered.

After the registration of company only the Central Government can direct for change of name of company if it finds for justifyable reasons the name are indentical.

One part is sure, the right to appeal always stays as a fundamental right for opportunity of being heard before any decision in writing for binding orders are passed.

 

Hope the stuff clarifies the issue...!

 

CA.Sundeep S Kamath

skamath@saasintellect.in

 

 

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