MCA NAMING GUIDELINES FOR PRIVATE LIMITED COMPANY / OPC / LLP

In the process of new company incorporation, the first and significant step is to select a name that is unique and which will give recognition to the company. A unique name of company must be reserved with Ministry of Corporate Affairs (MCA). Rule 8 of Companies Incorporation Rules 2014 provides name approval/availability guidelines as per Companies Act 2013 while selecting the names for companies. In this article we have discussed all about “MCA naming guidelines”.

Here is a detailed analysis of the points to be considered while selecting a name in the process of company formation.

 Law(s) Governing the Name Reservation Service

RUN service should be used pursuant to Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014 which are reproduced for your reference:

Section 4:

The name stated in the memorandum shall not:

(a) be identical with or resemble too nearly to the name of an existing company registered under this Act or any previous company law; or

(b) be such that its use by the company— (i) will constitute an offence under any law for the time being in force; or (ii) is undesirable in the opinion of the Central Government.

(C)  company shall not be registered with a name which contains—

(a) 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 under any law for the time being in force; or

(b) such word or expression, as may be prescribed, unless the previous approval of the Central Government has been obtained for the use of any such word or expression

PROCEDURE OF APPLY NAME RESERVATION

RESERVATION OF NAME :  As per Section 4(4) of the Companies Act, 2013.

1. A person (an applicant) may make an application to the Registrar of Company (ROC) for the reservation of name of the Company as set out in the application, as –

a) The name of the proposed Company; or

b) The name to which the Company proposes to change its name.

 MANNER OF MAKING APPLICATION FOR RESERVATION OF NAME : As per rule 9 of Company (Incorporation) Rules, 2014: Report this ad

1. An application for Reservation of Name shall be made to Registrar of Company (ROC), through the web service i.e., www.mca.gov.in by using Form RUN (Reserve Unique Name).

 2. Further, Registrar of Company (ROC), Central Registration Centre, may either be approved or rejected the application  after allowing re-submission of such application within 15 days for rectification of the defects, if any.

3. An application for Reservation of Name shall be made along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014, i.e.,  ₹ 1000/-

4.Further, Registrar of Company (ROC), Central Registration Centre, may either be approved or rejected the application   after allowing one time re-submission of such application within 15 days for rectification of the defects, if any,

Time limit for Reservation of Name of Company by Registrar of Company (ROC): As per Section 4(5) of the Companies Act, 2013:

Upon receipt of an application as per above stated provision under section 4(4), the Registrar of Company(ROC), may, on the basis of information and documents furnished along with the application, reserve the name as follows:-

 a) In Case of New  Company– For a period of 20 Days from the date of the application.

b) In Case of Existing  Company- For a period of 60 Days from the date of the application.

What kind of Company Name should be avoided?

The Company Name should not be:

1. Be same, similar, identical or resembling to the name of an existing Company or LLP registered. Phonetically similar names are also to be avoided.
2. Be similar to a registered trade mark or a trade mark for which an application has already been filed.
3. The name chosen should not constitute an offense under any law and should not be undesirable in the opinion of the Central Government.
4. The company name should not have any word or expression which is likely to give the impression that the company is in any way connected to the government central or state or any other local authority when it is actually not unless the approval from the respective government authority has been attained.
5. If a company’s name indicates any activities relating to financing, leasing, chit-fund, investment, securities etc., though the company’s business activity is not related to any of such activities than such names shall not be allowed.
6. Any descriptive name, wherein the name contains any commonly used words that describe any business activity.

Word or expression which can be used only after obtaining previous approval of the Central Government

According to MCA name availability guidelines, following words and combinations thereof 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:

1. Board;
2. Commission;
3. Authority;
4. Undertaking
5. National;
6. Union;
7. Central;
8. Federal;
9. Republic;
10. President;
11. Rashtrapati;
12. Small Scale Industries;
13. Khadi and Village Industries Corporation;
14. Financial Corporation and the like;
15. Municipal;
16. Panchayat;
17. Development Authority;
18. Prime Minister or Chief Minister;
19. Minister;
20. Nation;
21. Forest corporation;
22. Development Scheme;
23. Statute or Statutory;
24. Court or Judiciary;
25. Governor;
26. the use of word Scheme with the name of Government (s), State, India, Bharat or any Government authority or in any manner resembling with the schemes launched by Central, State or local Governments and authorities; and
27. Bureau.

DOCS PLANNER is a concept that emerged with the progressive and intellectual mindset of like-minded people. It aims at delivering the end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad in all the best possible ways.

To know more about our services and for a free consultation, get in touch with our team on   or call 9643203209.