MCA to use AI for Registering Corporate Names

May 20, 2019 | Srivats Shankar

The MCA considers using AI for company incorporation

The MCA (Ministry of Corporate Affairs) is considering the application of AI to the registration of names for companies. As part of its ambit, the MCA during the registration of companies handles the allocation of names to these entities. They have to ensure that each name assigned does not overlap with any existing names or trademarks. However, this has been a challenge and generally this is a long process, which could significantly be simplified by AI (Artificial Intelligence). The MCA is considering applying AI to ensure that no two names can coincide due to similarity, thereby leading to potential passing off or dilution.

Currently, this project has only been discussed and official plans are yet to be declared. This comes following the May 11 Gazette notification from the MCA that simplifies existing standards for registration of names for companies. These are referred to as the Companies (Incorporation) Fifth Amendment Rules, 2019. This is part of the push of the government to aggressively pursue the possibility of simplifying the process for managing corporations in India, especially following the recent rise in India’s position in the WTO (World Trade Organization) ease of doing business rankings.

AI Policy will update this with any new information as and when it arrives.

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