When a businessman heads to wards starting a company, before moving forward with the incorporation procedure, he must undertake to choose the unique name of the proposed company as it gives the unique identity to the company once incorporated.
There are some rules provided under rules [Chapter II the Companies (Incorporation) Rules 2014] Rule 8 and 8A which should be kept in mind while deciding the name of the company.
SOME STANDARD GUIDELINES FOR NAME AVAILABILITY
The name of the company should be unique and not identical or similar to the name of the existing Private Limited Company Registration. The name can be descriptive for e.g., if your company is a finance company it can include finance in its name to describes the nature of the company. So, if the company is in Logistic or some other business it cannot include “Finance” in its name. However, it is recommendatory to include the industry keyword. MCA has allowed company incorporations if only prefix of the company name is found unique.
The Proposed name of the company should not infringe any registered trademark or an application for registration of a trademark unless the consent of the registered trademark owner or trademark applicant is submitted along with the name approval application. Therefore, it is advisable to check the name availability on IP India Website.
You must also check whether your prefix of the company is available under Trademark for the applicable TM Classes.
- Choose Relevant Names
Do’s and Don’ts while deciding on the name of a new Company
- A word should be mentioned that describes the company.
- The proposed name needs to be unique to avoid duplication or offense
- The name should have the abbreviation at the end.
- It is prohibited under section 3 of the Emblem and Names.
- The name should not be offensive
- The plural version of any existing name is not applicable
- Block your domain Name
It is also necessary for an applicant to reserve the domain name. Hence it is advisable that you should block your domain name to avoid duplication. If your domain is registered, you can make this your ground also while filing for the name application in SPICE Part A
Proposed name of the company cannot imply association or connection with or patronage of any national hero or any person held in high esteem or important personages who occupied or occupying important positions in Government.
- Regulatory Approval
If the name of the company includes the words like bank, insurance, stock exchange, venture capital, mutual fund, asset management etc.It may require regulatory approvals from RBI, SEBI, IRDAI, etc.
How to check a company is registered or not?
The Ministry of Corporate Affairs (MCA) is a central authority. MCA portal contains all the data of the organization registered in India. Basically, it’s a directory where you can easily check the Name Availability online on website https://www.mca.gov.in/content/mca/global/en/home.html
Method to check Name Availability of a Company
Following are the steps to check the availability of the name.
Step 1: – Go to http://www.mca.gov.in/site then go to the MCA services option.
Step 2: – In company services click on check company name.
Step 3: – Enter the name of the organization, the activities that a company is going to carry and click on the “Search button”.
Step 4: – After that the MCA will provide the names of the existing companies with that word or if the proposed name is unique then MCA will generate the message that the Entered Company name does not exist which indicates that the name is available.
In the same way, you can also check Trademark and Domain for your proposed name.
Suggestion for Selecting the Unique Name
- Using Coin words for e.g., combining director’s names to makes a unique name.
- Using words of the regional language.
- A combination of 2- 3 names results in a unique name.
- Searching unique names suggestions on Google.
FREQUENTLY ASKED QUESTION
Q1. How do I apply for a name for a company?
Ans. You can use the services of check name availability for first-hand information on whether the proposed name is available and then apply for it in form SPICE PART A with 2 alternative names with different prefix word or SPICE PART B (composite Incorporation Form).
Q2.How to apply for a name if prefix of the proposed name is same to the existing company and activity is not mentioned?
Ans. This type of name may be allowed when accompanied with NOC by way of board resolution from the existing companies whose name is similar.
Q3. Who approves the name of the Company?
Ans. Private Limited Company Registration first verify all the forms and details and if everything goes right it approves the name of the company under the regime of Central Registration System also popularly known as CRC under MCA.
The Filling of the name of the company is an online process. You must consult a professional who can assist you better in the process to choose the name of your company. At Compliance Calendar LLP, we have experts who can help you throughout the incorporation process. You can raise your query at 9988424211or email us at email@example.com