The system will assign a confidence rating on a scale of one to five to each proposed company name. This rating will indicate the likelihood of approval without glitches. Names similar to those already in use, for instance, will receive a lower score, prompting users to try alternatives.
The average time taken for approval or rejection of a company incorporation application was 1.3 days last month, according to the MCA portal. The government aims to reduce this to less than a day using improved technology.
The AI-enabled system is expected to be launched by the end of the month. Initially, low-risk cases — such as those with no apparent rule violations — will be approved without human intervention.
“This green channel process will bring greater transparency to the system. Ultimately, our goal is to eliminate human intervention where possible and deploy resources where they are most needed,” the official said.
Experts say that despite the digitisation of processes, company incorporation in India remains complex, marked by rigorous regulatory scrutiny and demanding procedural requirements. “In India, company incorporation faces multiple challenges, with name approval being the most critical. Key challenges include documentation gaps, name approval hurdles, and interpretational ambiguities under the MCA framework,” said Abha Shah, partner, IndiaLaw LLP.
The MCA is developing the AI model internally in collaboration with its service provider, LTM (formerly LTIMindtree), using a graphics processing unit from the India AI Stack, the official said.
“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. The Central Registration Centre routinely rejects names on grounds such as ‘similarity’ or ‘generic usage’, even when applicants have conducted proper Rule 8 analysis, trademark checks, and filed no-objection certificates,” said Sindhuja Kashyap, partner, King Stubb & Kasiva, Advocates & Attorneys.
Kashyap observed that foreign subsidiaries face further hurdles due to stringent know-your-customer requirements for overseas directors, with minor mismatches often pushing timelines from days to weeks. “There is little accountability or consistency in how objections are framed or resolved,” she added.
According to the MCA portal, the number of companies incorporated in March 2026 rose to 22,320 from 21,157 a year earlier.
New company registrations increased 39 per cent in January 2026 to 23,280 compared with the same month last year, according to the January 2026 monthly information bulletin. Limited liability partnership registrations during the November-January 2026 quarter rose 54.5 per cent to 25,217, the data showed.
Name availability for companies (till April 9, 2026)
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