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Guidelines for name approval of company in India.

How to decide a relevant Name?

  1. The name must not be registered under any trademark class. Check on MCA in trademark classes.
  2. Such name must not be similar or identical to any existing name as provided under section 4(2) of the Companies Act 2013 read with rule 8 of the Companies (Incorporation) Rules 2014 
  3. The name shall be able to describe the object of the company.
  4. Proposed name should NOT be undesirable

Undesirable Names

  1. A name is considered undesirable if it violates one of the conditions below:
  2. Violates Emblems and Name Act:The proposed name should not violate section 3 of the Emblems Act 1950.
  3. Violates Trademark:The proposed name should not violate the name of a registered trade mark or a trade mark which is subject of an 8 application for registration, unless the consent of the owner or applicant for registration is obtained.
  4. Includes offensive words: The proposed name should not contain any word or words which are offensive to any section of the people.

Other conditions for name approval

The proposed name should be in consonance with the principal object of the company set out in the memorandum of association.

If the Company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, then a name indicative of such related financial activities, viz., Chit Fund/ Investment/ Loan, etc. should be a part of the name. 

 Any name that contains the word “British India” will not be allowed.

If a proposed name implies association or connection with embassy or consulate or a foreign government then the name will not be allowed.

If a 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, then that name will not be allowed.

Vague or an abbreviated name such as ‘ABC limited’ or ‘23K limited’ or ‘DJMO’ Ltd  or abbreviated name based on the name of the promoters will not be allowed.
Example:- BMCD Limited representing first alphabet of the name of the promoter like Bharat, Mahesh, Chandan and David will not be allowed. 

If the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding. Then two years must have elapsed from the date of such dissolution for the name to be used again.

If the proposed name is identical to the name of a company which in pursuance of action under section 248 of the Act was struck off, then the same shall not be allowed before the expiry of twenty years from the publication in the Official Gazette being so struck off.

 A name will not be allowed if it is identical with or too nearly resembles the name of an existing limited liability partnership or 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.

If the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual fund’ etc., then a declaration must be 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.

The word “State” will only be allowed in the case of a government company.

Names that only contain generic words like the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited or the name is a general one, like Cotton Textile Mills Ltd. or Silk Manufacturing Ltd. will not be allowed.

If a proposed name includes name of any foreign country or any city in a foreign country, the same shall be allowed only if the applicant produces any proof of significance of business relations with such foreign country like MOU with a company of such country. No company can be incorporated using the name of an enemy country.

Any name that includes any word in the following list will require approval from the Central Government. Board, Commission, Authority, Undertaking, National, Union, Central, Federal, Republic, President, Rashtrapati, Small Scale Industries, Khadi and Village Industries Corporation, Financial, forest, Municipal, Panchayat, Development Authority, Prime Minister or Chief Minister, Minister, Nation, Forest corporation, Development Scheme, Statute or Statutory, Court or Judiciary, Governor, Development Scheme or 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. 

Pursuant to the provisions of Section 4(5) of the Companies Act 2013, the name will be valid for a period of 60 Days from the date on which the application for Reservation was made to the Registrar

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