ABOUT COMPANY NAME AND WHAT TYPE OF NAME WE CAN OPT TO START THE BUSINESS!!

Company or Entity name

Now-a-days, naming your business can be a stressful process and one the most important and challenging steps for entrepreneurs. Ministry of Corporate Affairs (MCA) is one of the authority and a government portal through which we decide whether the name is unique/available or not. Name can be for private, public, One Person Company, LLP, etc.; MCA plays a vital role for letting us know the higher chances of availability of name. In addition to this, it is really important to check the name, if having the name registered as a trade mark which will give much greater protection.

Conditions for company name approval

As Companies Act, 2013 deals with the name guidelines, conditions for a company name. This blog will tell you various provisions and restrictions under Companies Act, 2013 while naming the Company.

1. The name should be based with the main object.
2. Name of a company, if found same to a separate type of business constitution, can never be allowed.
3. A name containing ‘British India' will not be allowed.
4. Connection of name with an embassy of a foreign government cannot be allowed.
5. Name associated with a national hero or persons held in important positions in government, will not be allowed.
6. Name of a company having a resemblance to the name of another company, which is dissolved due to liquidation proceeding, can be allowed after 2 years of dissolution.
7. Names containing the names of a country, continent, state, and city will not be allowed.

Name guidelines for a company

The new name should not match with another company name:

Some checks has been showed here to decide whether a new company name matches that of any old company name.

Plural style: If old company name is "ABC Hotel Private Ltd.", then proposed name for a new entity can never be "ABC Hotels Private Ltd." as the proposed name contains plural style of the old name.

Type, spacing, Letter case or punctuation marks: Suppose a company's name is "ABC Hotel Private Ltd." then the proposed name as "abc Hotel Private Ltd." or "ABCHotel Private Ltd." or "ABC-Hotel Private Ltd." cannot be allowed.

Likewise, using different tense, number or phonetic spellings, purposely misspelled words does not make it unique. Even, an addition of internet related designation (e.g. ABC Hotel.com Private Ltd.); common names or titles (e.g. New ABC Hotel Private Ltd.); the name of a place (e.g. ABC Hotel India Private Ltd.) do not make a name unique. 

Provisions

As per Companies act, 2013; proposing a name for a company there are certain provisions need to be followed which are given below:

1. Name of a public limited company will end with ‘Limited' and the name of a private limited company will end with ‘Private Limited'.
2. Name, which a company will select, shall not be same with any other old company's name. If a company uses an old name, then that use will be measured as objectionable as well as violation.
3. Name of a company should not be connected with the Central Government or any State Government or local authority.
4. Spice Part A contains an application for the availability of name as well as the prescribed fee of Rs.1000.
5. Companies Act, 2013 prescribes the maximum time for which name of a company should be applicable i.e., for 20 days

Notes

Company name is not only it’s individuality but also one of the most significant marketing strategies of the company. A company be it private, public or one person, must follow some practice for naming them. 

For name search on MCA portal:

Visit Ministry of Corporate Affairs (MCA) website>> MCA services>> Check Company name.

Use of word ‘National’, ‘Bank’, ‘Exchange’, ‘Stock Exchange’ is not allowed in Company or LLP name.

For trademark search on IPINDIA portal:

Visit Trademark website>> Public Search>> Submit

Only after proper check on these above two sites for name availability, an applicant can move further for name reservation process through Spice Part A form which is web based. Furthermore, Central Registration Center (CRC) will have an utmost authority whether to approve or request an applicant with one more chance to resubmit the form.

Only one re-submission is allowed.

Output documents

1. Name approval letter

Conclusion

Along with the above mentioned name guidelines, the company might follow the basic guidelines. Keep in mind the name of a company covers three areas i.e., name, object and constitution part. For example, in Hindustan Lever Private Limited, Hindustan is the name; Lever is the object, and Private Limited is the constitution part. Still, if you found any confusion, you can reach us or connect with NeuSource Startup Minds India Limited. We are here to help you with an immediate solution and to solve your queries.

For further queries please contact us on: Email Id Swati@neusourcestartup.com and Phone Number 9540026175.

The NeuSource Startup Mind is the finest business startup consultant that offers various services of registration like Proprietorship Firm Registration, Partnership Firm Registration, LLP Registration, Company registration, GST Registration, Copyright Registration, ISO Registration Trademark registration and other FSSAI License etc.

CS Ayushi Agrawal

All in Startup: Launching a New Idea When Everything is on the line!! But doing something that isn’t done before takes the world from zero to one. NEUSOURCE takes an progressive approach to building startups. THINK OUTSIDE THE INBOX!!