Guidelines for Naming a Pvt. Limited Company
Name of a company is something which needs to be unique, desirable and one of its kind to make it stand out from the rest. Hence, there are specific guidelines for choosing a name for a Private Limited Company. The applicants and Registrar of Companies are advised to comply with following guidelines while applying or approving the proposed name while company registration:
- ➤ A company name need not be a brand name but it is a name that is the base of the brands that the firm manufactures. However, in case the proposed name is indicative of any activity, the same will be appropriately reflected in the main object clause of the Memorandum of Association (MoA) while company registration
- ➤ If the Company’s main business is finance, housing finance, chit fund, leasing, investments, securities or combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, like Chit Fund/ Investment/ Loan, etc.
- ➤ If it includes the words indicative of a separate type of business constitution or legal person or any connotation thereof, the same shall not be allowed. Example- co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.
- ➤ Abbreviated names such as ‘XYZ limited’ or ‘23K limited’ cannot be given to a new company. However, in case the company is well known in their respective field by abbreviated name, then they are allowed to change their names to abbreviations of their existing name after following the requirement of Section 21 of the Companies Act, 1956.
- ➤ If the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding should not be allowed for a period of 2 years from the date of such dissolution since the dissolution of the company could be declared void within the period aforesaid by an order of the Court u/s 559 of the Act.
Moreover, if the proposed name is identical with the name of a company which is struck off in pursuance of action u/s 560 of the Act, then the same shall not be allowed before the expiry of 20 years from the publication in the Official Gazette being so struck off since the company can be restored anytime within such period by the competent authority.
- ➤ If the proposed names include words such as ‘Insurance’, ‘Bank’,‘Stock Exchange’, ‘Venture Capital’, ‘Asset Management’, ‘Nidhi’,‘Mutual fund’ etc, the name may be allowed with a declaration 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.
- ➤ If the proposed name includes the word “State”, the same shall be allowed only in case the company is a government company. Also, if the proposed name contains only the name of a continent, country, state, city such as Eurape limited, Germany Limited, Delhi Limited, Mysore Limited, shall not be allowed.
- ➤ If a foreign company is incorporating its subsidiary company, then the original name of the holding company as it is may be allowed with the addition of the word India or name of any Indian state or city.
- ➤ Change of name shall not be allowed to a company which is defaulting in filing its due Annual Returns or Balance Sheets or which has defaulted in repayment of matured deposits and debentures and/or interest thereon.
- ➤ A proposed name for a company should not be identical to that of an existing company or limited liability partnership name.
- ➤ It should not be undesirable & offensive which Violates Emblems and Name Act or Trademark or Includes offensive words.
- ➤ The name should not include use of the word "British India" as it is not approved by MCA.
- ➤ The names that imply patronage are not allowed as well. It should also not be Generic.
- ➤ The name should not be associated with the Embassy or consulate or foreign government.
