How to select a company name to avoid rejection on MCA?
You can easily reserve a name for your new company using RUN service of MCA. However, MCA has provided guidelines to keep in mind while selecting a name. The following are some basic rules to keep in mind:
- The name must be unique,
- The name shall not be identical or resemble too nearly to the name of any existing company or LLP, you can check the company name from here,
- The name shall not be a registered trademark, you can check out the registered trademark from here.
Following are the rules to keep in mind:
1. The name shall not include the words indicative of a sperate 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 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 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. Unless a declaration is submitted by the applicant of the requirement by the 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, the name can not be 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. Unless the previous approval has been obtained from the authority for the use of such word.
8. The name shall not include the name of a person other than promoters or their close blood relatives. NOC shall be obtained and attached with RUN if the name of any other person is used in a proposed name.
9. The name shall not include the name of any sole proprietor or partnership firm already registered. Unless NOC for the use of same is obtained 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. Words such as Board, Commission, Authority, Undertaking, National, Union, Central, Federal, Republic, President, Municipal, Panchayat, Development Authority, Minister, Nation, Small Scale Industries, Governor etc, shall not be used in the name of a company in English or any of the languages depicting the same meaning. Unless the previous approval of the Central Government has been obtained for the use of any such word or expression
To gain more clarity on the same, you can refer to the Instruction Kit provided by MCA.
1. 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.
2. Can I name my company after my name?
Yes, you can name your company after your name. It is allowed. However, you need to keep in mind that you are a promoter of that company.