Rules to select Company Name to avoid rejection on MCA

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Hiral Vakil

MCA
OPC
PLC
RUN
Start & Run Business

You can easily reserve a name for your new company using RUN service of MCA. However, MCA has provided rules to keep in mind while selecting a name of company. The following are some basic rules to keep in mind:

How to apply for name reservation through RUN service?
Read steps to apply for name reservation through RUN service
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How to apply for name reservation through RUN service?
Read steps to apply for name reservation through RUN service
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Rules to select Company Name on MCA

  1. The name shall not include the words indicative of a separate type of business constitution. For example, the name should not contain co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, Inc., PLC, etc. in the name.
  2. The proposed name shall not contain the words ‘British India’
  3. The name shall not imply association or connection with the embassy or consulate or a foreign government.
  4. The name shall not imply association or connection with or patronage of a national hero or any person held in a high esteem position in Government.
  5. The proposed name shall not include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual Fund’ etc. To include such words in the name, the applicant must submit a declaration based on the requirement of different regulators such as IRDA, RBI, SEBI, MCA, etc.
  6. The name shall not include the name of a continent, country, state, city. For example, an applicant cannot choose names like Asia Limited or Germany Limited or Haryana Limited.
  7. The proposed name shall not imply any connection with the Central Government, State Government, or any local authority. For the use of such words, a previous approval from the authority is necessary.
  8. The name shall not include the name of a person other than promoters or their close blood relatives. In such a case, the applicant shall take NOC i.e. No Objection Certificate, and attach it with RUN Form.
  9. The name shall not include the name of any sole proprietor or partnership firm already registered. In such a case, the applicant shall take NOC i.e. No Objection Certificate from the proprietor or partnership firm.
  10. For the Companies under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like, etc. Every company incorporated as a “Nidhi” shall have the last word ‘Nidhi Limited’ as part of its name.
  11. The proposed name shall not include words such as Board, Commission, Authority, Undertaking, National, Union, Central, Federal, Republic, President, Municipal, Panchayat, Development Authority, Minister, Nation, Small Scale Industries, Governor, etc. To use such words, previous approval from the Central Government is required.
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FAQs

I have a partnership firm registered in Tamil Nadu? Can I give my new company the same name as my Partnership Firm?

Yes. You can give your new company the same name as your partnership firm. But while filing RUN form you need to attach NOC from the partnership firm.

Can I name my company after my name?

Yes, you can name your company after your name. However, you need to keep in mind that you are a promoter of that company.

What is a NIDHI company?

A NIDHI Company is notified under section 620-A of the Companies Act and is classified as “Mutual Benefit Financial Company” by the RBI. Essentially, a Nidhi Company differs from a regular finance
investment company or a Non-Banking Finance company (NBFC), as it deals only with its shareholders or members, for mutual benefits of its members. A Nidhi Company accept deposits only
its members and lends funds only to them on demand. A Nidhi Company is not entitled to carry out business/activities related with hire purchase financing, leasing finance, chit funds, acquisition of
securities issued by any corporate body, etc. or issue any debt instruments (such as preference share,debentures, etc.) in any form

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