Wednesday, July 6

Guidelines for Company Name

Guidelines for Company Name

During the process of naming your company, the first and critical step is to choose a name that is special to you and is relevant to the offerings of your company. It is important to keep the statutory requirements in mind while choosing a Company Name.

The company Name endorsement and approval process in India is regulated by the Ministry of Corporate Affairs (MCA) according to the Company Name Availability Guidelines given under the Companies Act 2013. Rule 8 of Companies Incorporation Rules 2014 gives name endorsement/ accessibility rules according to Companies Act 2013 while choosing the names for organizations.

What Types of Company Names are Accepted?

An acceptable name for an OPC (One Person Company), LLP (Limited Liability Partnership), Private & Public Limited Company has three sections:

  • Name part
  • Object part
  • Constitution part
Company Name has three parts, 1. Name Part, 2. Object Part, 3. Constitution Part
Three Sections of a Company Name

Name Part

The name should be exceptional and satisfactory, as characterized by the Companies Act, 2013 or LLP Act, 2008. The name can’t be something very similar or like current companies or brand names in a similar industry or field. 

Along these lines, on the off chance that there exists a Company by the name XYZ Tech Private Limited, then, at that point, the name XYZ Tech LLP would not be permitted. Additionally, comparable names like AAA Techies Private Limited won’t be permitted for what it’s worth in a similar industry and is like a current organization. Nonetheless, AAA Cars Private Limited will be permitted all things considered in an alternate industry/field.

Object Part

Each Company (incorporates Private Limited Company, One Person Company, Limited Company) and LLP name should incorporate an item part, that expresses the idea of the business of the substance. The article part characterizes the principal action embraced by the Company or LLP. Names without object parts or names with obscure object parts won’t be permitted.

Constitution Part

The constitution part characterizes the sort of element the name addresses.

  • One Person Companies are addressed by OPC or Person companies.
  • Restricted Liability Partnerships are addressed by LLP or Limited Liability Partnership.
  • Private Limited Companies are addressed by Private Limited Company or Private Limited or Pvt. Ltd Company.
  • Public Companies are addressed by LTD Company or Limited or Limited Company.

What Types of Company Names are Rejected?

While you are choosing a company name, ensure that your company name does not contain any word as prohibited in Section 4(2) & (3) of the Companies Act, 2013 read with Rule 8 of the Companies (Incorporation) Rules, 2014.

The proposed name isn’t as per the exercises depicted in Main Objects

The item given in the organization name doesn’t match the principal objects referenced in the name application. A model would be a name application for XYZ Hospital Private Limited with the principal objects referenced as “To make or administration vehicles”. Here the organization’s name containing emergency clinic and the principal action referenced in the name application do not match and would be dismissed.

The proposed Name isn’t accessible considering the presence of indistinguishable or intently looking like organizations

The proposed organization name is indistinguishable or like a current organization name or LLP name or brand name. According to the Companies Act, 2013 the name of an organization can’t be indistinguishable or like the name of a current organization or LLP or brand name.

Catchphrases like International, Hindustan, India, Bharat, Continental, Asiatic, Corporation

The MCA will take into consideration the utilization of words, for example, International, Hindustan, India, Bharat, Continental, Asiatic, Corporation provided that the extension and size of business legitimize the utilization of such names. In this manner, just grounded organizations are permitted to utilize watchwords like International, Hindustan, India, Bharat, Continental, Asiatic, Corporation in their organization name.

The proposed name incorporates words like National, Central, Union, Federal, and so on 

The Ministry of Corporate Affairs doesn’t allow the utilization of watchwords like National, Central, Union, Federal, and so on, as a piece of the organization name. Any organization name with those catchphrases might be dismissed.

The proposed name demonstrates the organization or the support of any National Leader or Government.

Any organization name that shows association or support of any National Leader or Government will be dismissed by the MCA. For example, Delhi State Hospital Private Limited might be dismissed as it shows organization or the support of the Government.

How to Check Availability of Company Name?

The proposed name should be exceptional when contrasted with a current Company Name or a Limited Liability Partnership Name or Trademark. Coming up next are ventures for checking the rundown of organization and LLP names in presence:

  1. Go to the accompanying site or quest for “MCA Name Availability” on the web:
  2. In the Company or LLP Name, enter the proposed organization or LLP Name and snap search.
  3. The rundown will show the rundown of the Company and LLPs in the presence of a comparable name.
  4. Assuming the hunt returns “No records found”, then, at that point, there are no comparative organizations or LLPs with a comparative name.

or Visit InstaFinancials to search OPC, LLP, Private & Public Limited Company or Director Names.

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