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What is the process to obtain the name approval for a Section 8 company?

1. Understanding the Naming Guidelines

  • The name of a Section 8 company must reflect its charitable or non-profit nature.
  • Names that suggest profit-making or commercial motives are not allowed.
  • Words like “Foundation”, “Association”, “Society”, “Council”, “Institute”, or “Trust” are preferred.
  • The words “Limited” or “Private Limited” are not used, even though the entity enjoys limited liability.
  • The proposed name should not be identical or too similar to an existing company or trademark.

2. Preparation Before Applying

  • Ensure the proposed names align with the company’s main objectives.
  • Prepare at least two suitable and meaningful names as alternatives.
  • Draft a brief object clause (up to 500 characters) describing the company’s purpose.
  • Confirm that the chosen names are available using the MCA Name Search facility.
  • Avoid using restricted, offensive, or misleading terms as per the Companies (Incorporation) Rules.

3. Filing SPICe+ Part A Form

  • The application for name approval is filed through the SPICe+ Part A form on the MCA portal.
  • This form is part of the integrated SPICe+ application used for incorporation.
  • It requires details such as the proposed name, type of company (Section 8), and brief objectives.
  • The applicant must also mention whether the company is private or public.
  • A fee of ₹1,000 is payable at the time of submission of SPICe+ Part A.

4. Review by Central Registration Centre (CRC)

  • The application is processed by the Central Registration Centre (CRC) of the Ministry of Corporate Affairs.
  • CRC examines the name based on rules, availability, and alignment with Section 8 requirements.
  • The proposed name must not violate the Emblems and Names (Prevention of Improper Use) Act, 1950.
  • Approval is usually granted within 2 to 3 working days if all conditions are satisfied.
  • If rejected, the applicant may be asked to submit a new name or correct errors.

5. Validity and Further Steps

  • Once approved, the name is reserved for 20 days from the date of approval.
  • The approved name must be used in the SPICe+ Part B form for company incorporation.
  • Failure to complete the incorporation within this period may require a fresh name reservation.
  • After name approval, proceed with applying for the license under Section 8 (Form INC-12).
  • Ensure consistency in name and object description across all registration documents.

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