When we go to a store to buy toothpaste, we often ask for Colgate and not for toothpaste. This is the power of Brand. The brand is nothing but the name of a company. Name decides the fate and future of the Company. One must be very diligent in choosing the name of the Company.
The Government (Ministry of Corporate Affairs) vide the Companies Act, 2013 has prescribed the following guidelines and conditions for the name of the Company.
1. Name of a Company: Section 4 of Companies Act, 2013
2. Names which resembles too nearly with name of existing company: Rule 8 of the Companies (Incorporation) Rules, 2014
3. Reservation of Name: Rule 9 of the Companies (Incorporation) Rules, 2014
4. Extension of reservation of names in certain cases: Rule 9A of the Companies (Incorporation) Rules, 2014
In the following cases name is marked as undesirable by the Registrar of Companies
1. The name of the shall not be identical with or resemble too nearly to the name of an existing company.
1. Green Technology Ltd. is same as Greens Technology Ltd. and Greens Technologies Ltd.
2. ABC Ltd. is same as A.B.C. Ltd. and A B C Ltd.
3. Ascend Solutions Ltd. is same as Ascended Solutions Ltd. and Ascending Solutions Ltd.
4. Chemtech Ltd. is same as Chemtec Ltd., Chemtek Ltd., Cemtech Ltd., Cemtek Ltd., Kemtech Ltd., and Kemtek Ltd.
5. Ultra Solutions Ltd. is same as Ultrasolutions.com Ltd.
6. Ravi Builders and Contractors Ltd. is same as Ravi Contractors and Builders Ltd.
7. Congenial Tours Ltd. is same as A Congenial Tours Ltd. and The Congenial Tours Ltd.
8. Color Technologies Ltd. is same as Colour Technologies Ltd.
9. National Electricity Corporation Ltd. is same as Rashtriya Vidyut Nigam Ltd.
10. If Salvage Technologies Ltd. is an existing name, it is same as Salvage Technologies Delhi Ltd and Salvage Delhi Technologies Ltd.
11. Thunder Services Ltd is same as Thunder11 Services Ltd and OneThunder Services Ltd
12. Use of any name shall not constitute offense under any laws.
13. The name shall not be undesirable in the opinion of the Central Government.
The name shall be considered undesirable, if-
1. it is prohibited under the provisions of section 3 of the Emblems and Names (Prevention and Improper Use) Act, 1950 (12 of 1950), unless a previous permission has been obtained under that Act;
2. the name includes a trade mark registered under the Trade Marks Act, 1999 and the rules framed thereunder in the same class of goods or services in which the activity of the company is being carried out or is proposed to be carried out, unless the consent of the owner of the trade mark, as the case may be, has been obtained and produced by the promoters;
3. it includes any word or words which are offensive to any section of the people;
4. the proposed name is identical with or too nearly resembles the name of a limited liability partnership:
5. the proposed name is identical with or too nearly resembles with a name which is for the time being reserved
6. the company’s main business is financing, leasing, chit fund, investments, securities or combination thereof, but the proposed name is not indicative of such related financial activities, viz., Chit Fund or Investment or Loan, etc.;
7. the company’s name is indicative of activities financing, leasing, chit fund, investments, securities or combination thereof, but the company’s main business is not related to such activities;
8. it resembles closely the popular or abbreviated description of an existing company or limited liability partnership;
9. the proposed name is identical with or too nearly resembles the name of a company or limited liability partnership incorporated outside India and reserved by such company or limited liability partnership with the Registrar:
10. any part of the proposed name includes the words indicative of a separate type of business constitution or legal person or any connotation thereof e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG, etc.;
11. the proposed name contains the words ‘British India’;
12. the proposed name implies association or connection with an embassy or consulate of a foreign government;
13. the 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 the Government;
14. the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding and a period of two years has not elapsed from the date of such dissolution:
Provided that if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 248 of the Act or under section 560 of the Companies Act, 1956 (1 of 1956) then the same shall not be allowed before the expiry of twenty years from the date of publication in the Official Gazette being so struck off;
1. it is identical with the name of 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;
2. the proposed name include words such as ‘Insurance’, ‘Bank’, ‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’, ‘Mutual Fund’, etc., unless a declaration is 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;
3. the proposed name includes the word “State”, in case the company is not a Government company;
4. the proposed name is containing only the name of a continent, country, State, city such as Asia limited, Germany Limited, Haryana Limited or Mysore Limited;
5. Use of descriptive names, where the name merely consists of commonly used words to describe an activity.
6. The name of Company shall not contain any word which contains any word or expression which is likely to give the impression that the company is in any way connected with, or having the patronage of, the Central Government, any State Government, or any local authority, corporation or body constituted by the Central Government or any State Government.
Reservation of Name:
The name may be reserved in the following situations
1. Where new a Company is being proposed
2. Where existing company proposes to change its name
How to reserve name:
For proposed company
1. Go to MCA log in page, log in> company services> spice+ > New application
For existing company
2. Go to MCA log in page, log in> company services> RUN (Reserve Unique Name)
Reservation period and payment of fees
3. When a company is being incorporated the promoter has a choice to reserve a name for twenty days and within those twenty days apply for incorporation of a Company. For reservation of name, the applicant has to pay fees of Rs. 1000 on the MCA portal. In case the where more period of time is required for compiling documents of incorporation promoters can seek an extension from the MCA for the number of days upon payment fees as prescribed below:
|Extension||Extension period||Fees applicable||When to apply|
|1st extension||forty days from the date of preliminary approval||Rs. 1000||before the expiry of twenty days from the date of preliminary approval|
|2nd Extension||sixty days from the date of preliminary approval||Rs. 2000||before the expiry of forty days|
(this means extended can be sought for 60days without going for 40days extension.)
|Sixty days from the date of preliminary approval||Rs. 3000||before the expiry of twenty days from the date of preliminary approval|
Documents required for reservation of Name:
1. NOC of the registered owner if the name contains any word which is a registered Trademark under IPR laws. Also, NOC should be in a Board Resolution form if the Trademark is owned by a body corporate or a company.
2. NOC from the sectoral regulator if the company is regulated by sectorial laws.