Company Name Availability
Guidelines
As a first step towards registering a
Company, the promoter should get the proposed Company Name approved by the
respective Registrar of Companies (ROC). Company name approval and allotment process in India is
administered by the Ministry of Corporate Affairs (MCA) as per the Company Name
Availability Guidelines issued under Companies Act 2013.
What is a Company Name or a
Corporate Name?
‘Company Name’ is the name by which a registered Company is being identified.
Generally, name of the Company depicts its Trade Name or Brand Name along with
its main activities.
How the Company Name should be?
In the case of a private limited company, the name shall end with words
“Private Limited” or with word “Limited” in case of a public limited company. Company
Name has three parts. ‘The Name’, ‘Activity’ and words ‘Private Limited’ or ‘Limited’
as the case may be.
For Example ‘CompaniesInn.com India Private Limited’. Here,
‘CompaniesInn’ stands as unique name, ‘.com’ refers to online services, ‘India’
stands as a ‘noun’ and ‘Private Limited’ refers to the mandatory requirement of
last words for a Private Limited Company. We have registered the name ‘CompaniesInn’
as a Trademark. Thereafter when converted to a Limited Liability Partnership,
we have changed the name as ‘CompaniesInn.com LLP’.
How to choose the Company Name?
The Company Name SHOULD
-
Be unique
-
Contain a noun and an
activity word that reflects its objectives
-
Be in line with Company Name
Guidelines issued by Ministry of Corporate Affairs.
The Company Name SHOULD NOT
-
Be same, similar, identical
or resembling to the name of an existing Company or LLP registered. Phonetically
similar names also to be avoided.
-
Be similar of a registered trade
mark or a trade mark for which an application has already been filed
-
Be Offensive
-
Be Undesirable in the
opinion of the Central Government (Undesirability of names explained
separately)
Company Name Availability
Possibility of getting a Company Name can be checked
by a search at ‘Check Company or LLP Name’ at MCA website. You can check the name by providing
proposed ‘Company or LLP Name” and activities.
MCA search Result shows ‘No Results Found’. Shall I get the
searched Name?
The MCA Name Search result will only provide the
probability of getting the proposed name. The search result does not guarantee
the availability of Company or LLP name as the name approval is finally granted
by office of Registrar of Companies (ROC). The ROC office will do more refined
search of proposed name and will also check with Trademark Registry as well
before grant of a Company or LLP Name.
How to make a Company Name Application?
Application for availability of Company Name has to
be filed with the Registrar of Companies in Form INC-1. It is preferable to
submit the application with multiple names in the order of preference. Company
name application must be in line with the Company Name Guidelines.
How many Names can be applied with one application?
Multiple names can be submitted for approval in one
application in the order of preference. If the first applied name is not
available, ROC will approve the next name. If you are particular about one
name, it is preferable to apply with one name only and in case that name is not
available apply the next name at the time of resubmission of application. Name
application can be resubmitted only once.
Once approved, the name will be reserved for 60
days. Company registration documents have to be executed and filed within this
time line.
What all facts will be disregarded for determination
of Company Names?
While
determining whether a proposed name is identical with another, the differences
on account of the following shall be disregarded -
a.
the words like Private, Pvt,
Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership;
b.
words appearing at the end of the
names – company, and company, co., co, corporation, corp, corpn, corp.;
c.
plural version of any of the
words appearing in the name;
d.
type and case of letters, spacing
between letters and punctuation marks;
e.
joining words together or
separating the words does not make a name distinguishable from a name that uses
the similar, separated or joined words;
f.
use of a different tense or
number of the same word does not distinguish one name from another;
g.
using different phonetic
spellings or spelling variations shall not be considered as distinguishing one
name from another. Illustration (For example, P.Q. Industries limited is
existing then P and Q Industries or Pee Que Industries or P n Q Industries or P
& Q Industries shall not be allowed and similarly if a name contains
numeric character like 3, resemblance shall be checked with ‘Three’ also;)
h.
misspelled words, whether
intentionally misspelled or not, do not conflict with the similar, properly
spelled words;
i.
the addition of an internet
related designation, such as .com, .net, .edu, .gov, .org, .in does not make a
name distinguishable from another, even where (.) is written as ‘dot’;
j.
the addition of words like New,
Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. Does not make a
name distinguishable from an existing name and similarly, if it is different
from the name of the existing company only to the extent of adding the name of
the place, the same shall not be allowed; such names may be allowed only if no
objection from the existing company by way of Board resolution is submitted;
k.
different combination of the same
words does not make a name distinguishable from an existing name, e.g., if
there is a company in existence by the name of “Builders and Contractors
Limited”, the name “Contractors and Builders Limited” shall not be allowed unless
it is change of name of existing company;
l.
if the proposed name is the Hindi
or English translation or transliteration of the name of an existing company or
limited liability partnership in English or Hindi, as the case may be.
What is meant by an Undesirable Name?
1.
A Company name shall be
considered undesirable, if -
a.
it attracts the provisions of
section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12
of 1950);
b.
it includes the name of a
registered trade mark or a trade mark which is subject of an application for
registration, unless the consent of the owner or applicant for registration, of
the trade mark, as the case may be, has been obtained and produced by the
promoters;
c.
it includes any word or words which
are offensive to any section of the people;
2.
The name shall also be considered
undesirable, if-
a.
the proposed name is identical
with or too nearly resembles the name of a limited liability partnership;
b.
it is not in consonance with the
principal objects of the company as set out in the memorandum of association;
Provided that every name need not be necessarily indicative of the objects of
the company, but when there is some indication of objects in the name, then it
shall be in conformity with the objects mentioned in the memorandum;
c.
the company’s main business is
financing, leasing, chit fund, investments, securities or combination thereof,
such name shall not be allowed unless the name is indicative of such related
financial activities, viz., Chit Fund or Investment or Loan, etc.;
d.
it resembles closely the popular
or abbreviated description of an existing company or limited liability
partnership;
e.
the proposed name is identical
with or too nearly resembles the name of a company or limited liability
partnership incorporated outside India and reserved by such company or limited
liability partnership with the Registrar:
f.
Provided that if a foreign
company is incorporating its subsidiary company in India, then the original
name of the holding company as it is may be allowed with the addition of word
India or name of any Indian state or city, if otherwise available;
g.
any part of the proposed name
includes the words indicative of a separate type of business constitution or
legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP,
partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG
etc.;
h.
Explanation.- For the purposes of
this sub-clause, it is hereby clarified that the name including phrase ‘Electoral
Trust’ may be allowed for Registration of companies to
i.
be formed under section 8 of the
Act, in accordance with the Electoral Trusts Scheme, 2013 notified by the
Central Board of Direct Taxes (CBDT):
j.
Provided that name application is
accompanied with an affidavit to the effect that the name to be obtained shall
be only for the purpose of registration of companies under Electoral Trust
Scheme as notified by the Central Board of Direct Taxes;
k.
the proposed name contains the
words ‘British India’;
l.
the proposed name implies
association or connection with embassy or consulate or a foreign government;
m.
the proposed name includes or
implies association or connection with or patronage of a national hero or any
person held in high esteem or important personages who occupied or are
occupying important positions in Government;
n.
the proposed name is vague or an
abbreviated name such as ‘ABC limited’ or ‘23K limited’ or ‘DJMO’ Ltd:
abbreviated name based on the name of the promoters will not be allowed. For
example:- BMCD Limited representing first alphabet of the name of the promoter
like Bharat, Mahesh, Chandan and David:
o.
Provided that existing company
may use its abbreviated name as part of the name for formation of a new company
as subsidiary or joint venture or associate company but such joint venture or
associated company shall not have an abbreviated name only e.g. Delhi Paper
Mills Limited can get a joint venture or associated company as DPM Papers
Limited and not as DPM Limited:
p.
Provided further that the
companies well known in their respective field by abbreviated names are allowed
to change their names to abbreviation of their existing name after following
the requirements of the Act;
q.
the proposed name is identical to
the name of a company dissolved as a result of liquidation proceeding and a
period of two years have not elapsed from the date of such dissolution:
r.
Provided that if the proposed
name is identical with the name of a company which is struck off in pursuance
of action under section 248 of the Act, then the same shall not be allowed
before the expiry of twenty years from the publication in the Official Gazette
being so struck off;
s.
it is identical with or too
nearly resembles the name of a limited liability partnership in liquidation or
the name of a limited liability partnership which is struck off up to a period
of five years;
t.
the proposed name include words
such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset
Management’, ‘Nidhi’, ‘Mutual fund’ etc., unless a declaration is submitted by
the applicant that the requirements mandated by the respective regulator, such
as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant;
u.
the proposed name includes the
word “State”, the same shall be allowed only in case the company is a
government company;
v.
the proposed name is containing
only the name of a continent, country, state, city such as Asia limited,
Germany Limited, Haryana Limited, Mysore Limited;
w.
the name is only a general one,
like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd., and not Lakshmi Silk
Manufacturing Co. Ltd;
x.
it is intended or likely to
produce a misleading impression regarding the scope or scale of its activities
which would be beyond the resources at its disposal:
y.
the proposed name includes name
of any foreign country or any city in a foreign country, the same shall be
allowed if the applicant produces any proof of significance of business
relations with such foreign country like Memorandum of Understanding with a
company of such country:
Provided that the name combining the name of a foreign country
with the use of India like India Japan or Japan India shall be allowed if,
there is a government to government participation or patronage and no company
shall be incorporated using the name of an enemy country. Explanation.- For the
purposes of this clause, enemy country means so declared by the Central
Government from time to time.
What are the conditions for the use name of relatives
for a Company Name?
In case the key word used in the name
proposed is the name of a person other than the name(s) of the promoters or
their close blood relatives, No objection from such other person(s) shall be
attached with the application for name. In case the name includes the name of
relatives, the proof of relation shall be attached and it shall be mandatory to
furnish the significance and proof thereof for use of coined words made out of
the name of the promoters or their relatives.
What are the conditions for use existing Sole
proprietor or Partnership name as Company Name?
The applicant shall provide a declaration to
state whether they are using or have been using in the last five years , the
name applied for incorporation of company or LLP in any other business constitution
like Sole proprietor or Partnership or any other incorporated or unincorporated
entity and if, yes details thereof and No Objection Certificate from other
partners and associates for use of such name by the proposed Company or LLP, as
the case may be, and also a declaration as to whether such other business shall
be taken over by the proposed company or LLP or not .
What are words that cannot be used Company Name?
The following words and combinations thereof
shall not be used in the name of a company in English or any of the languages without
previous approval of the Central Government -
a)
Board;
b)
Commission;
c)
Authority;
d)
Undertaking;
e)
National;
f)
Union;
g)
Central;
h)
Federal;
i)
Republic;
j)
President;
k)
Rashtrapati;
l)
Small Scale Industries;
m)
Khadi and Village Industries
Corporation;
n)
Financial, Corporation and the
like;
o)
Municipal;
p)
Panchayat;
q)
Development Authority;
r)
Prime Minister or Chief Minister;
s)
Minister;
t)
Nation;
u)
Forest corporation;
v)
Development Scheme;
w)
Statute or Statutory;
x)
Court or Judiciary;
y)
Governor;
z)
the use of word Scheme with the
name of Government (s) , State , India, Bharat or any government authority or
in any manner resembling with the schemes launched by Central, state or local
Governments and authorities; and
za)
Bureau
