Sindhuja Kashyap Highlights Challenges in Company Name Approval Process in Business Standard Feature

Sindhuja Kashyap was recently featured in a Business Standard article discussing the evolving role of AI in company name approvals and the broader challenges in India’s incorporation process.

Systemic Challenges in Company Name Approval

In her interaction, Sindhuja drew attention to systemic concerns affecting efficiency and predictability in company registrations.

“The biggest challenge with company incorporation in India today is not the law but the system’s opacity and subjectivity. Name approval has effectively become a black box.”

She noted that the Central Registration Centre routinely rejects names even when applicants have completed thorough due diligence. Common grounds for rejection include:

• Alleged “similarity” to existing names
• “Generic usage” objections
• Rejections despite proper Rule 8 analysis, trademark checks, and filed no-objection certificates

Complexities for Foreign Subsidiaries

She further highlighted additional complexities faced by foreign subsidiaries. Stringent know-your-customer requirements for overseas directors often lead to delays, with even minor discrepancies extending timelines significantly.

Emphasising the need for greater clarity, she added:

“There is little accountability or consistency in how objections are framed or resolved.”

The Need for Transparency and Technological Efficiency

Her insights highlight the importance of transparency, consistency, and technological efficiency in streamlining India’s corporate regulatory framework, particularly as the government moves towards integrating AI-driven solutions.

Visit Article: https://www.business-standard.com/industry/news/mca-ai-name-approval-system-green-channel-company-registration-126041200321_1.html